I just talked to the assistant of my AGE broker and he wasn't familiar with the term "long for late delivery" but said that, though he couldn't swear to it, to the best of his knowledge I could sell any stock, listed or otherwise, and deliver the certs within 3 days, and it wouldn't be considered a short sale because I do own shares, regardless of their holding status. The way he put it made a lot of sense.
Also just got off the phone with Farsight.
Their requirement of physical delivery of a BB before selling is a Farsight requirement, not a legal requirement. As they said, some firms will allow you to do it. It's not illegal. Farsight simply has their own policy of requiring delivery first.
So it appears that AGE, Schwab, and, as someone reported earlier, DLJDirect will let you sell a BB before delivering the cert, as long as it meets the legal obligation of t+3. Farsight won't, but it's a matter of policy, not law.
I would imagine, though, that if you did not deliver the shares in the required timeframe, you would be short, which would be illegal. |
