What’s Different about the TradeZero Locator?
Get Real Time Updates
Create a list of symbols that you wish to price locates on for a potential short. Then watch those prices update dynamically in real-time (ZeroPro only).
Find The Best Pricing
The locator scans availability at over a dozen venues, including its own supply to find you the best availability and pricing to get you short.
Relist Your Locates
No longer need your locates? List them back to the TradeZero network through the Locator. If another user purchases them, you can recover some of the fee you initially paid.
Supply Of Availability
By allowing traders to mark shares for credit, TradeZero has an additional source of locates availability, even if there are no shares available at the moment. Now there’s an edge!
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.
How It Works
A Cost-Effective Solution
Single Use (SU) Locates are a new, cost-effective option for Regulation SHO threshold securities, offering a cheaper alternative to Pre-Borrows (PB) while ensuring compliance.
Affordable Shorting Option
Unlike Pre-Borrow Locates, which are reusable throughout the day, Single Use (SU) Locates are single-use and more affordable, making them ideal for one-time short trades on Regulation SHO securities.
Credit Back Ability
Single Use (SU) Locates are one-time use and cannot be reused. However, if not used, they can be credited back.
Simple And SEC-Compliant
Using Single Use (SU) Locates is simple and compliant. Request a locate, and our system will prioritize Single Use Locates. Accept and proceed with your short sale efficiently and cost-effectively.
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.