Why did I receive a Reg SHO Rule 204 notice?

A Reg SHO Rule 204 notice means your account may be at risk of a failure to deliver (FTD) in a short position.

What this means:

• A failure to deliver occurs when shares cannot be borrowed or delivered to settle a short sale
• This is more common in stocks with low float or high short interest

Why you received the notice:

• You may be holding a short position at risk of not being delivered
• TradeZero or its clearing firm may not be able to secure shares to settle the trade

What to expect:

• This notice is sent as a proactive alert so you can manage your position

Important:

• Your position may be closed out without notice if shares cannot be borrowed
• If you cover your position and the clearing firm also closes it out, you may end up with a long position
• Short selling in that security may be restricted if the issue is not resolved

Learn more:

• https://www.sec.gov/investor/pubs/regsho.htm
• https://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm"