Tracking short interest

[ValueAnalyst]

IBorrow Desk

IB down to 2.0% with even larger number of shares available to short.

 

[neroden]

I'm lent out at Fidelity, at 1%. I may move another account over if I get time (it is a hassle).

 

[Yonki]

I'm lent out at Fidelity, at 1%. I may move another account over if I get time (it is a hassle).

I haven't found transferring accounts to be much of a hassle (I moved my Ameritrade, Scottrade, and shifty 401k accounts over in the last three years). Since Fidelity wants your money, they are happy to do most of the heavy lifting - IIRC I just had to fill out a form or two and send it in.

 

[MikeC]

Fidelity down to 0.875%. I blame @neroden

 

[ValueAnalyst]

Number of available shares to short has declined with fee rate remaining low.

IBorrow Desk

 

[Yonki]

Looks like the beginning of the end of the full-paid lending gravy train (gravy trickle?). Fidelity just dropped the rate they're charging to short TSLA to 0.25%.

EDIT: Not able to embed chart - click on link if you want to see it.

 

[AWDtsla]

Looks like the beginning of the end of the full-paid lending gravy train (gravy trickle?). Fidelity just dropped the rate they're charging to short TSLA to 0.25%.

EDIT: Not able to embed chart - click on link if you want to see it.

How are the rates determined?

 

[Yonki]

How are the rates determined?

Don't know exactly - some variation on supply and demand.

 

[neroden]

Still better than zero. I wouldn't be surprised if there's another chance: this is the *third* round for fully paid lending in TSLA (it went away twice before, and came back during renewed short-seller attacks).

 

[Rarity]

Today, Fidelity's rate that it pays jumped to 1.875%, but IBorrowDesk indicates that the rate Interactive Brokers is paying did not move much (probably around .9% or 1.0%).

 

[MikeC]

Today, Fidelity's rate that it pays jumped to 1.875%, but IBorrowDesk indicates that the rate Interactive Brokers is paying did not move much (probably around .9% or 1.0%).

You sure? I’m seeing 1.0% for Fidelity right now.

 

[Yonki]

You sure? I’m seeing 1.0% for Fidelity right now.

Just came to say exactly that - Fidelity's rate inched up (from 0.875% for weeks to 1%) for the first time since early May. Surprisingly the rate they charge to short is still at 0.25%.

I know too much to even pretend to know what any of this means.

Here's my chart which may or may not be embedded correctly (if it isn't, it should be here):

 

[Rarity]

You sure? I’m seeing 1.0% for Fidelity right now.

Now I see 1.0%. They must have corrected it.

 

[neroden]

Yummy, I appreciate the extra fraction of a percent. That does mean that shorts are piling in.

 

[neroden]

I haven't found transferring accounts to be much of a hassle (I moved my Ameritrade, Scottrade, and shifty 401k accounts over in the last three years). Since Fidelity wants your money, they are happy to do most of the heavy lifting - IIRC I just had to fill out a form or two and send it in.

FWIW, it took two weeks. Apparently when the amounts of money are large it gets slowed down due to "approvals".

 

[Yonki]

FWIW, it took two weeks. Apparently when the amounts of money are large it gets slowed down due to "approvals".

Well I hope you find Fidelity works well for you. They're the first broker (out of Scottrade, Etrade, 2 different tries with Ameritrade, Vanguard and USAA) that seems to meet all my needs perfectly.

 

[Rarity]

I recalled my shares at Fidelity. Things could get a little squirrely, so not worth the 1%.

 

[neroden]

Likewise recalled. At the very least I want my shares ready for any record dates which may come up, and the situation is wild enough that there is the small possibility of a true "we can't find any shares, sorry" squeeze, which is a tail risk I won't take.

 

[MikeC]

Likewise recalled. At the very least I want my shares ready for any record dates which may come up, and the situation is wild enough that there is the small possibility of a true "we can't find any shares, sorry" squeeze, which is a tail risk I won't take.

I had assumed that the collateral money was only to be used if the brokerage itself went bankrupt. Is there a legal scenario where the brokerage could remain solvent, but still only return the collateral? Or even return the full market value of the stock at the time but not the stock itself?

I had assumed the only way I would actually lose shares is if Fidelity went bankrupt but now you guys are scaring me.

 

[adiggs]

I had assumed that the collateral money was only to be used if the brokerage itself went bankrupt. Is there a legal scenario where the brokerage could remain solvent, but still only return the collateral? Or even return the full market value of the stock at the time but not the stock itself?

I had assumed the only way I would actually lose shares is if Fidelity went bankrupt but now you guys are scaring me.

I'm thinking that you should be scared. If there are no shares available at all, I would expect Fidelity to be returning their own shares that they own. But at some point, Fidelity will be out of shares owned by Fidelity.

I expect, for instanced, that the loaned out shares in margin accounts - those positions will get closed out for $420 cash / share.


Anybody have the phone number for Fidelity Capital Markets handy?

EDIT: Here they are:
Fidelity Capital Markets
800.471.0382