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clock Created with Sketch. 15/02/24
12:13
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Originally posted by WhatsTheTip:
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I think its that SS are frequently just acting as a middleman or broker. The ASX prohibits naked short selling. That means if someone is to short shares, they first need to acquire them from someone. SS acts as a middleman or broker to enable that. They find an institution or wealthy individual prepared to lend shares and borrow shares from that institution/individual. Presumably they pay that institution/individual a fee. Now SS have some shares. They can now lend or transfer those shares to a shorter, again for a fee but this time bigger than the one they are paying. They margin clip the ticket. The shorter then has shares they can sell on-market. State street retains an interest in that volume of shares but not those specific individual shares. The specific individual shares are now with the shorter and sold on-market to the general purchasing public. They may be the shares someone bought on-market.
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Originally posted by GortonGums:
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State Street aren't shorting. It's securities lending, they get paid a fee to lend the stock out.
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thank you both.
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