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About Pre-Borrows

Eligibility

The Pre-Borrow Market

Rates and Fees

Transaction Information

Note:  Pre-borrows can be affected by corporate actions involving the issuer of the shares. Corporate actions that occur when a pre-borrow is already in place may result in borrowed shares that are neither able be used to effect a short sale, nor can returned by the borrower until the corporate action has been completed.

Additionally, in some instances corporate action-impacted securities may be unavailable to borrow, as counterparties may not have available shares until the day after the corporate action has been completed.

Accounts that pre-borrow shares are responsible for paying the lender the amount of any distributions made by the issuer including, but not limited to, dividends (regular cash, special cash, shares), rights/warrants, and spin-off shares. A client may take on additional significant economic exposure and be liable for a substantial payment if the client holds pre-borrowed shares at the close of business on the day prior to ex-dividend date, regardless of the trading position in the account.

Important Disclosures