Handling and Executing Short Sales: Rapid Fire

What this video covers

• The two branches of the short sale definition, including delivery of a security borrowed by or for the seller
• How deemed ownership generally counts only to a net long position, including the long 1,000 and short 800 share example
• The documented locate requirement, including a borrow, bona fide borrowing arrangement, reasonable grounds, and written documentation
• The four locate exceptions: another registered broker or dealer, a deemed owner awaiting lifted restrictions, bona fide market making, and security futures
• How to mark every equity sell order long, short, or short exempt, and why ownership alone does not support a long mark without possession or control
• How the NMS 10% price test works, why it lasts through the following day, and why an over-the-counter (OTC) equity security has no short exempt route
• Baseline, documented long sale, threshold security, and deemed-owner fail closeout timelines, including clearing participant responsibility and purchase-only rules