What is ‘Easy-To-Borrow List’
A list of securities deemed to be available for borrowing in short selling transactions because their delivery is assured. Availability is usually due to their accessible nature and/or high number of outstanding shares.
Explaining ‘Easy-To-Borrow List’
Also known as a blanket or standing assurances by members or associated persons, this easy-to-borrow list is updated every 24 hours. It gives firms the ability to transact short sells more readily, as they aren’t required to research the availability of a stock every time it is requested for a short sale transaction. Instead they can assume that stocks on the list are readily available.
Further Reading
- Stocks are special too: An analysis of the equity lending market – www.sciencedirect.com [PDF]
- Connecting two markets: An equilibrium framework for shorts, longs, and stock loans – www.sciencedirect.com [PDF]
- The options market maker exception to SEC Regulation SHO – www.sciencedirect.com [PDF]
- Failure is an option: Impediments to short selling and options prices – academic.oup.com [PDF]
- The market for borrowing stock – www.sciencedirect.com [PDF]
- From housing wealth to well‐being? – onlinelibrary.wiley.com [PDF]
- Financial cycles: what? how? when? – www.jstor.org [PDF]
