Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Home Solutions of America (HSOA), The best is yet to come -- Ignore unavailable to you. Want to Upgrade?

To: FHM who wrote (72)	7/21/2006 12:41:23 AM
From: FHM	Read Replies (3) \| Respond to of 20808

another source: dtcc.com of particular interest: "The Stock Borrow Program allows participants to lend NSCC available stocks and fixed income securities from their account at The Depository Trust Company (DTC), to cover temporary shortfalls in NSCC's Continuous Net Settlement (CNS) System. *** How the service works By early evening on each business day, participants forward to NSCC a list of securities that are available for borrowing. The list can be transmitted via CPU-to-CPU link or PCWeb Direct. Early in the morning on the following business day, NSCC determines the securities obligations that remain open after CNS clearance processing. NSCC then attempts to satisfy these obligations by borrowing from participants in the Stock Borrow Program."

To: FHM who wrote (72)	7/21/2006 9:08:31 AM
From: FHM	Read Replies (1) \| Respond to of 20808

<<You have shares that others are willing to pay a fee to borrow. Schwab borrows the shares and lends them to other clients or financial institutions, which use the shares to facilitate various trading strategies and FULFILL SETTLEMENT OBLIGATIONS.>> (emphasis mine) still amazed that the program applies not only to shares held in cash accts, but those in retirement accts as well. I am forbidden to deploy these shares 4 margined purchases or options trading, but apparently it is perfectly legal 4 Schwab 2 let some shortie borrow them to cover a naked short obligation...... <<shakes head in disbelief>> BTW, I have a call in to my broker at Fidelity to ascertain whether Fid has a comparable program. The rep I spoke 2 last night AH wasn't aware of one, and speculated that perhaps Schwab can do this bcz of its bank ownership. Will post what I am able to learn.