Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Brooks Jackson who wrote (5778)	1/24/1999 11:15:00 PM
From: R. L. Chapin	Read Replies (2) of 122087

U.S. Brokerage firms will not allow retail clients to short non-marginable securities in their accounts. Canadian brokerage firms however are not subject to the same regulations. They will allow you to short any stock, however they maintain significantly higher margin requirements. They do this through U.S. market makers and are still subject to buy in however. In short, open an account with a Canadian brokerage firm. Also, be careful... I know this type of arrangement is often called "offshore", however most offshore brokerage firms outside of the U.S. and Canada operate through U.S. Brokerage firms via an omnibus account or a U.S. based clearing arrangement. This is the case with most foreign banks (e.g. Swiss Bank, ABN Amro...) and offshore service providers (Private Asset Management and Lines Overseas Management)). In instances such as this, U.S. margin requirements and limitations would apply, therefore there would be no benefit to an arrangement of this type. You must ensure that the clearing of the securities actually takes place outside the U.S.

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