Since 2015, TradeZero has been dedicated to empowering the trading community by offering advanced tools and professional resources that enhance traders’ competitive edge. Serving traders at all levels — from newcomers to highly experienced professionals — TradeZero delivers solutions tailored to active market participants, supported by 24/7 customer service and a rich base of educational materials.
This article examines TradeZero’s Single Use Locates feature, an innovative tool designed to help traders control costs.
Introduced in September 2024, Single Use (SU) Locates were created to offer a more affordable alternative to Pre-Borrow (PB) Locates, specifically for Regulation SHO threshold securities. While PB Locates allow multiple uses throughout the day, SU Locates are intended for a single transaction, making them a cost-effective choice for one-time trades involving threshold securities.
A Regulation SHO threshold security list, or “threshold list” as they are otherwise known, is essentially a list of securities whose transactions failed to clear at a registered clearing agency for five consecutive days. Published in accordance with regulations established by the Securities and Exchange Commission (SEC), threshold lists can be accessed by the public via websites maintained by the Financial Industry Regulation Authority, Cboe Global Markets, the New York Stock Exchange, and the Nasdaq Stock Market. The SEC-adopted Regulation SHO was created to address the issue of failures in delivering securities within the settlement period, thereby promoting market stability and preventing erosion of investor confidence in financial markets.
SU Locates are simple to use, with the trader requesting a locate as they normally would and a SU Locate is automatically prioritized by the TradeZero system. The trader simply accepts the SU Locate and proceeds with their short sale, benefiting from this swift, cost-efficient tool.
SU Locates are for one-time use and cannot be reused. Traders using the TradeZero platform may utilize both PB Locates and SU Locates, although the system will automatically prioritize SU Locates first. Where SU Locates are unavailable, the trader will be offered PB Locates instead. While regular Locates can be credited back, SU Locates can be credited back if they are unused, but Pre-Borrows cannot be credited back, so it is important for traders to ensure they need the full amount prior to requesting Locates.
For day traders seeking flexible, affordable short-selling options, TradeZero’s SU Locates offer a valuable solution. In such a fast-paced environment as day trading, particularly for those specializing in short-selling, tools that provide flexibility while simultaneously minimizing cost can make all the difference in terms of profitability. To this end, TradeZero’s SU Locates make short trades on Regulation SHO threshold securities more affordable and accessible.
Eager to protect their profit margins, traders are increasingly turning to TradeZero’s SU Locates as a streamlined, one-time solution for trading Regulation SHO threshold securities, embracing a more budget-friendly alternative to PB Locates. A standout feature of TradeZero’s SU Locates is their cost effectiveness, positioning them as an affordable alternative to conventional PB Locates. Since they are designed for one-time use per day, SU Locates generally attract a lower price point, making them an ideal solution for day traders who do not need to short the same security multiple times in the same trading session. Eliminating the need for manual selection, prioritizing SU Locates frees up the attention of traders to concentrate more on strategy and execution and less on logistics.
Disclaimer:
TradeZero America, Inc., a United States broker dealer, registered with the Securities and Exchange Commission (SEC) and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC); TradeZero, Inc., a Bahamian broker dealer, registered with the Securities Commission of the Bahamas; and TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of the Canadian Investment Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF) (collectively the “TradeZero Broker Dealers”) are subsidiaries of TradeZero Holding Corp.
TradeZero Broker Dealers offer self-directed electronic securities trading to their customers. TradeZero Broker Dealers do not provide financial or trading advice and do not make investment recommendations to their customers. This communication does not constitute an offer to sell or a solicitation to buy any security or instrument which it may reference. There is a risk of loss in online trading of securities including equities and options. Trading on margin is for experienced investors only as the amount you may lose can be greater than your initial investment. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses.
If you have any specific questions about TradeZero’s brokerage services, please reach out to the TradeZero Broker Dealer in your jurisdiction.
