How It Works
How To Access?
Approved margin accounts have access to the TradeZero Locator. Available on all platforms.
Single Use Locates For Short Selling
A new, cost-effective locate type specifically for Regulation SHO threshold securities. Single Use (SU) Locates can only be used once per day and are typically cheaper than Pre-Borrows. Single Use Locates are one-time use and cannot be reused. However, if not used, they can be credited back.
Best For: Short-selling Regulation SHO threshold securities while focusing on cost efficiency. We’ve designed Single Use Locates to help you reduce costs without sacrificing compliance, automatically prioritizing them when available.
Now available ZeroWeb, ZeroMobile, ZeroFree and ZeroPro.
Uncover The Details
Uncover The Details
Uncover The Details
FAQs
Regulation SHO is a regulation established by the U.S. Securities and Exchange Commission (SEC) to address issues related to short selling, specifically to prevent abusive practices such as "naked short selling," where traders short a stock without first ensuring that the shares can be borrowed.
Regulation SHO Threshold Securities are stocks that have a significant number of unsettled trades —known as "fails to deliver"— over a consecutive five-day period. These securities are placed on the SEC’s threshold list and are subject to stricter SEC regulations to prevent market manipulation and ensure proper borrowing practices.Yes, but the system will automatically serve the Single Use (SU) Locate first. If Single Use Locates are unavailable, you will then be offered Pre-Borrow Locates.
No, the system automatically selects the Single Use (SU) Locate first. Pre-Borrow Locates are only offered if Single Use Locates are unavailable.
While Locates (L) & Pre-Borrows (PB) can be credited back so long as they are not linked to an open short order or position, Single-Use (SU) Locates can only be credited back if they have not been used to open a short position.
No, both regular Locates and Pre-Borrow Locates will continue to work as before, allowing multiple shorting opportunities throughout the day, making them suitable for non-threshold and threshold stocks, respectively.
Single Use (SU) Locates will be available on TradeZero's platforms in late October/early November. Be prepared to leverage this new tool to enhance your trading strategy and stay compliant with industry regulations.