The Easy-to-Borrow list (Short List) is imported into the trading platform each day. If a stock is available to short without requiring a locate, a green “S” will appear next to the symbol box in the platform. This indicates that no locate request is needed.

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Short locate fees are charges incurred to secure the ability to short stocks that are not classified as easy-to-borrow. These fees are quoted on a per-share basis, and the rate depends on the borrowing difficulty for that stock on a given day.

Fees may fluctuate throughout the day based on market conditions and are only applied once you accept the quoted locate price. If the locate request is declined, no fee will be charged.

A trading halt means that trading in the stock is temporarily suspended by the exchanges or regulators. This can happen for reasons such as pending news, regulatory investigations, corporate actions, or activation of the Limit Up–Limit Down rule.

If the halt is brief, you will be able to cover your open short position once trading resumes. However, if the halt lasts beyond after-hours trading and you cannot cover your position by 20:00 ET, you will remain responsible for overnight borrow costs, margin costs, and any other daily fees until the stock resumes trading or the Depository Trust Company (DTC) delists the security. You must also maintain sufficient equity in your TradeZero account to cover these charges.

During a halt, the following may occur:
- You may be required to deposit additional funds.
- TradeZero Europe’s Auto Risk Monitoring may send orders to cover positions to restore sufficient equity.
- Withdrawals may be restricted.
- Your account may be set to Liquidate Only (LO), preventing new opening trades.

For more information,please refer to: https://www.finra.org/investors/investing/investment-products/stocks/trading-halts-delays-suspensions

The Short List is a collection of stocks that are readily available to borrow for short selling.

If a stock is not on the Short List (classified as non–easy-to-borrow), it may still be possible to short it by locating shares for a fee.

In simple terms:
You received this notice because your short position may not have shares available to borrow, creating a risk of a “failure to deliver.” The rule requires brokers to act quickly in these situations, so we notify you to give you the chance to adjust your position before restrictions apply.

The detail:
Regulation SHO Rule 204 is the Close-out Requirement, which requires brokers and dealers that are participants of a registered clearing agency to close out any “failure to deliver” (FTD) positions. Under Rule 204(a), an FTD must be closed out by borrowing or purchasing the securities no later than the start of regular trading hours on the following settlement day.

If you actively day trade and frequently hold short positions, you may be at risk of an FTD if TradeZero or its clearing firm is unable to borrow the shares. To make this process transparent, we request information from our clearing house before the close of business to identify any positions at risk of FTD. We then notify affected clients by email so they can decide whether to maintain or exit the position.

Rule 204(b) provides that if a clearing house does not close out an FTD in accordance with Rule 204(a), then the clearing house—and any broker-dealer that clears through it—may not accept new short sale orders in that security unless the shares have first been borrowed or a bona fide borrowing arrangement has been made. To help clients avoid this restriction, TradeZero informs them in advance of any potential FTD.

As a general rule of thumb, stocks with a small float or high short interest are more likely to trigger FTDs, and therefore Reg SHO Rule 204 notices, than stocks with a larger float and lower short interest. It is important to understand these rules when making trading decisions.

Yes. As long as your short position remains open, overnight borrow fees will continue to apply—even if the market is closed for the weekend or if the stock is halted and not actively trading. The borrow must remain secured in order to keep the position open.

When holding any short position overnight, an overnight borrow fee will apply. This daily fee will be charged every day you hold a short position overnight and until the short position is covered. You can see an estimate of the fee by logging into your client portal and going to: 

The overnight borrow calculator includes all holidays or weekdays where a fee will apply. It is important to check the overnight borrow calculator every day you plan on holding your short position overnight.

Please note that overnight borrow costs are based on a minimum of 100 shares short. Overnight borrows are denominated in 100-share lots, meaning that odd-lot positions (less than 100 shares) are rounded up to the nearest hundred shares.

If you hold 1 share short overnight, you will still be charged the daily fee applicable to 100 shares.

If you hold 235 shares, this will be rounded up and charged as 300 shares.

After the first 100 shares, fees continue in blocks of 100 shares.

Short Selling