Why register?

Problem we address

RegSHO.com automates Regulation SHO Threshold Security List ON/OFF/BUYIN IMMINENT notifications ("Alerts") to all brokerage firms, institutions, hedge funds. Our team works with brokerage firms and their respective failures to deliver amounts per stock for all threshold securities. RegSHO.com will notify firms of the total short sale time/sales per month for each stock to show users the true size of the short selling activity in each stock.

Who wants to be notified of compliance problems

Solution

RegSHO.com‘s LocateStock technology (licensed from LocateStock.com) is a web-based application that can either clear through our DTC clearing partners or utilitzed as an in-house solution to prime brokers, clearing firms or any member firm. LocateStock can negotiate with inventory suppliers (mutual funds, clearing firms and member firms that have substantial long positions) to make available both their easy-to-borrow and hard-to-borrow inventories. Currently, LocateStock pays a monthly fee to have exclusive access to a firm’s blend of hard-to-borrow and easy-to-borrow inventory for locates associated with short sales. As the technology locates stock for clients, it decrements the inventory of the firm delivering the stock to the short seller. Since the stock loan business is a 95% voice business today, the LocateStock.com web-based solution to short selling compliance is a true benefit to all parties and counter-parties.

RegSHO.com provides users with legal opinions, time stamped locates with unique identifiers and real deliveries of borrowed stock through DTC. If LocateStock is hosting the solution for its customers, each customer must clear through a DTC member firm. Deliveries are made between the parties using a DTC account. Because there are minimum net cap requirements for transacting, our DTC clearing partners may not be the suitable clearing platform for all parties. Our team will need assess your needs.

Integrating access to the web-based LocateStock platform directly from the Order Management Systems at each member firm will add to the compliance benefits of the product. Using FIX protocol, a member firm could integrate a pop-up to LocateStock if a short sale is attempted in a hard-to-borrow security.

Equity Finance Exchange (EFEX) is a beta product that can also be integrated with Order Management Systems using FIX and allows lenders and borrowers to meet electronically, and possibly anonymously, to borrow and lend securities associated with short sales. Lenders can batch upload their inventory and borrowers can batch upload their short positions allowing each party to compare rebate rates in the EFEX system vs. rates provided by prime brokers. Users can borrow and lend stock in an "exchange-like" system that mirrors a Level II machine.

Short Rebate Rate Data: RegSHO.com publishes daily short rebate rate data. These rebate rates help borrowers and lenders price their own activities and retain more of the economic benefit from their inventory lending or short selling activities. This also allows parties to renegotiate rebate rates with their prime brokers and can be a cost savings or income center for those accessing the data.

RegSHO.com is also launching an automated stock availability and rebate rate notification system that alerts all parties to opportunities existing in the web based LocateStock.com or EFEX product mix. This will increase activity between the parties and increase income to our partnership.

Conclusion

Our mission is to offer the flexibility of an in-house private label version of the product or hosted web-based solution that creates an electronic paper trail, alerts to pending failure to deliver issues and gets good affordable deliveries in a timely one stop shop solution.

Creating an exchange (EFEX) that allows parties to compete transparently and anonymously offers an EBAY style efficiency to the securities lending industry. Alerting inventory suppliers as to the whereabouts of interest borrowers who are willing to compete to borrow stock would increase income to lenders and guarantee compliance for borrowers. This will also create a real time short rebate pricing market that modernize the current stock lending system on Wall Street.

Our products provide both an in-house privacy option for internal use only but are capable of linking data in each private label platform to the global web-based (EFEX) solution at the push of a button. This gives users the ability to make their inventory and stock borrowing activities available to the global efficiency of an open exchange at whatever point in time they feel comfortable.

Borrow Rates (per share)