SEC Regulation SHO requires that upon receipt of a short sale order involving U.S. equity securities (“stocks”), Interactive Brokers LLC (“IB”), as executing broker, identify the location of the shares that are to be delivered in time for settlement of the trade.
If an IB customer does not clear its trades through IB, but uses a separate clearing broker or custody agent, the customer must arrange with its clearing broker or custody agent to borrow the shares that are to be delivered in time for settlement of the short sale transaction, and indicate to IB the location of these shares. The location will be the customer’s clearing broker or custody agent which may have a valid MPID assigned by the Financial Industry Regulatory Authority (FINRA), or the customer may request that IB assign a four letter location code.
Below is a list of valid FINRA MPIDs or IB Assigned Location Codes most commonly used by those IB customers who use a clearing broker or custody agent other an IB:
|Clearing Broker||FINRA Valid MPID||IB Assigned Location Code|
|Bank of New York||BONY|
|Societe General New York||SGNY|
|Brown Brothers Harriman||BBHC|
|Swiss American Securities Inc.||SWIS|
|Interactive Brokers LLC||IBKR|
|First Clearing, LLC||FCCP|
|Penson Financial Services, Inc.||PFSI|
|Goldman Sachs (formerly, LIT Division of FOC)||GLDS|
|Bear Stearns Securities Corp.||BSSC|
|USAA Investment Management Company||USAA|
|E*Trade Clearing LLC||ETRS|
|ABN AMRO Inc.||ABNA|
|CIBC World Markets Corp.||CWMK|
|Goldman Sachs Execution and Clearing, LP.||GLDS|
|Merrill Lynch Professional Clearing Corp.||PRST|
|Deutsche Bank Securities, Inc.||DBPR|
|Fiserv Securities Inc.||BHCS|
|PAX Clearing Company Limited Partnership||PXCO|
|Scott & Stringfellow, Inc.||BBNT|
|McDonald Investments, Inc.||MDLD|
|JP Morgan Chase Bank||JPMS|
|State Street Bank and Trust Company||SSBS|
|The Bank of New York – James Capel||BONY|
|RBC Dominion Securities, Inc./CDS||RBCF|
|NBCN Clearing, Inc./CDS||NBCN|
|Barclays Capital Inc.||BCAP|
|ABN AMRO Sage Corporation (California)||SGCL|
In addition to the above, click here to view a list of valid MPIDs published by FINRA.
If you use a clearing broker or custody agent which does not have an FINRA assigned MPID or an IB Assigned Location Code on the above list, click here to send an e-mail to IB to indicate the name of your clearing broker or custody agent and suggest a four letter code to indicate the location of the shares you have arranged to borrow for delivery in connection with your short sale order. IB will review your request to add the four letter code in lieu of a valid MPID.
- IB’s systems are configured to reject any short sale order that does not contain a valid MPID in FIX Tag 5700.
- If IB is also the customer’s clearing broker, FIX Tag 5700 will automatically be populated with IBKR, which is Interactive Brokers’ MPID.