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. And 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.
Reapply Your Shares
When you no longer need your locate, you can potentially reapply your shares to another TradeZero customer by marking the shares for credit and recoup part of the fee paid.
Supply of Availability
By allowing traders to mark shares for credit, TradeZero has an additional source of locates, 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
Coming Soon To TradeZero
How It Works
A Cost-Effective Solution
Single Use (SU) Locates are a new, cost-effective option for Reg SHO threshold securities, offering a cheaper alternative to Pre-Borrows (PB) while ensuring compliance.
Affordable Shorting Option
Unlike PB Locates, which are reusable throughout the day, SU Locates are single-use and more affordable, making them ideal for one-time short trades on Reg SHO securities.
Credit Back Ability
Single Use Locates are one-time use and cannot be reused. However, if not used, they can be credited back.
Simple and SEC-Compliant
Using SU Locates is simple and compliant. Request a locate, and our system will prioritize SU 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.
Reg 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 SU Locate first. If SU Locates are unavailable, you will then be offered PB Locates.
No, the system automatically selects the SU Locate first. PB Locates are only offered if SU Locates are unavailable.
While regular Locates (L) can be credited back if they are not used, once PB and SU Locates are issued, they cannot be credited back, so make sure you need the full amount before requesting these Locates.
No, both regular Locates and PB Locates will continue to work as before, allowing multiple shorting opportunities throughout the day, making them suitable for non-threshold and threshold stocks, respectively.
SU Locates will be available on our ZeroPro and ZeroMobile platforms in early October. Be prepared to leverage this new tool to enhance your trading strategy and stay compliant with industry regulations.