Loading ...“Shorting In practice:
Somebody wants to short $GME. Most HFs that short-sell first ping their PB to “locate borrow”.
In order to meet legal requirements, the broker has to find un-lent shares (so the same shares aren’t lent twice). The PB will “tag” those shares, indicate to the client the prevailing cost to borrow, and provide the client a “locate ID” that guarantees that client those shares.”