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Froggy $

13,218 Posts.

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22/06/23

20:51

Post #: 68426374
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Originally posted by mbc ↑

No it’s not them gathering their holding back, lending won’t show as a deduction in their exposure - they still have that exposure because they can recall at any time, so their position never changes and you never know how much they physically have because it doesn’t matter - they get it back as soon as it matters so they still have the exposure.

If you loan shares, you still own them - you are just providing someone else with “cover” for settlement, they owe you so you get to show it in your balance even if it’s just to be repaid.

If they decreased it because of loaning, that would mean they don’t match the weight for the index and it doesn’t track properly and so it would be a useless fund.

They would be “involved” insofar as whoever actually holds the shares and funds into the ETF loans some out. Doesn’t make sense? That’s because the system basically allows double-dipping effectively.

Forgive me if I’m not explaining it well, it’s hard to describe without a whiteboard

End of the day, there really not much short interest in ASN, a fraction of the total amount held in nominees and custodian accounts that could easily lend them if they wanted.

Last I looked it was less than 3x my own holdings.

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it was lower

Last edited by Froggy $: 22/06/23
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