It usually varies from firm to firm. They detail this usually in your margin agreement and if you contact them they should explain it clearly.
Its usually not the FIRM but the clearing firm. In other words, Yamner is the executing brokerdealer, but Pershing is the clearing firm. They extend the margin, the borrowed stock, etc. , albeit through us, as though it were us.
In the 4 years that I have been head of our trading desk, we have never had to buy in someone with short shares. We've had Pershing call and want the shares back but we were able to borrow them elsewhere. So dont get down on the firm, unless they are the clearing firm as well, or unless they didnt do anything and everything to get other shares for you.
As for timing, I have heard of firms giving notice and buying in within an hour. I have also, though , heard that this was also because the firm owned positions in the short stock and wanted to squeeze the position a bit.
Tough question...no easy answer...call the firm.
Regards,
Steve@yamner.com |
