It comes under Reg. T when dealing with Brokerage Firms and Reg. U when dealing with banks.
Fair enough, but you'll still need to show me the rule that says I can't short BB stocks because they're not marginable. Longs always say this, but BB stocks are shortable if your broker has the shares available to borrow
But in the case of BB stocks, they are not marginable under any condition at a brokerage firm and therefor cannot be lent legally.
Surely you are jesting. Are you saying BB stocks can't be shorted?
I have shorted numerous BB stocks at both Schwab and DLJ. Its a little harder at Schwab, but it is possible.
However, it would be sufficient for you to provide the name of a Schwab representative that allows such a trade.
Did the trade through my signature platinum team. To be specific, I shorted HITT through Schwab.
Granted, Schwab marks OTC BB stocks as not shortable AND not marginable. However, you can ask Stock loan to find shares via the watch list and sometimes they will. In the case of HITT, they located shares and let me short it. In the case of ZSUN, they still haven't located any for me.
Now at DLJ it is much easier to short BB stocks, I've shorted numerous BB stocks there and it can all be done through their web site and marketspeed. A quick cursory glance at the main shorting threads will show you numerous people that have used DLJ and Yamner to short BB stocks since they borrow from Pershing:
exchange2000.com
exchange2000.com
exchange2000.com
who has yet to be allowed to short any BB stock. No matter what equity he puts up.
I advise him to find out about the watch list. It lets you short all kinds of stuff marked not shortable/not marginable. |
