quantgenius

10 ms·

91.
by quantgenius 14y ago
Based on the comments it seems many people are missing out on some of the most important points the blogger is making. First, a very large percentage (maybe 40-50%) of Chinese companies going public on Western and developed Asian exchanges
92.
by quantgenius 14y ago
We want to fail them means we are going to issue a failure to deliver because it turns out that the stock we thought was available is not. If you fail on a trade, you don't cancel the trade, a trade is binding, it means you require the cus
93.
by quantgenius 14y ago
I think the paragraph means that the client THOUGHT Goldman couldn't get the stock and did not expect them to be able to get it but Goldman was able to get the stock.
94.
by quantgenius 14y ago
No, it just means the Goldman salesman was able to find someone who owned OSTK stock and was willing to lend it out at the rate the hedge fund client was willing to pay to borrow it. It's called good customer service.
95.
by quantgenius 14y ago
The risk of massive short sales are precisely to the naked short-sellers because you can be required to deliver at any time and if you fail to deliver you broker or the DTC can buy you in at any price, and charge you an enormous commission
96.
by quantgenius 14y ago
Generally, if short interest gets very high many, many professional investors get interested in buying the stock for precisely that reason. Buy enough and recall your stock, ie make it not available for borrow and you create a short squeez
97.
by quantgenius 14y ago
107% of available shares being shorted is NOT a physical impossibility. Let's say there are only 10 shares of OSTK outstanding. I own them all and make them available for borrow by short sellers. Short sellers borrow all 10 and sell them
98.
by quantgenius 14y ago
What about when a manufacturer sells something they haven't manufactured yet under a contract to deliver a few days into the future based on a reasonable expectation that the inputs into the manufacturing process are widely available at rea
99.
by quantgenius 14y ago
The solution is NOT simple. I suppose it always seems simple to impose rules on a system you don't understand. Thousands of systems would need to change at brokers, banks, clearing firms, trade processing firms etc including mainframes run
100.
by quantgenius 15y ago
Yes.