The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.

Interactive Brokers - Notification of Possible Borrow/Delivery Failure

Hello, I am currently auto-trading a strategy with an account at Interactive Brokers. The strategy currently has a short position in DUST (Direxion Daily Gold Miners Index Bear 2X Shares). I got this email from IB and it’s the first time I ever received this email. I’m confused about what this means. If anyone could explain this to me I would appreciate it. Thanks

"As a result of short sale transactions executed two or more business days ago, your account U******** has a delivery obligation in the stocks listed below and/or has borrowed shares from IBKR to make delivery on a short position that has not yet been closed.

DUST (XXX shares)

However, as of 14:30 EST, IBKR does not have a settled borrow contract in place. If IBKR is unable to borrow the required number of shares, a failure-to-deliver will result. By SEC regulation, failures-to-deliver require a buy-in transaction on the first business day following the failure.

Contracted borrows will often resolve themselves so this notification is intended to provide you with the most current information. IBKR will try to provide additional updates as they become available.

Alternatively, repurchase of the full amount of your short position(s) in these stocks prior to the end of the current regular trading session (16:00 EST) will ensure the account will not be subject to a forced close-out at the next trading session. For complete information relating to short sale practices, please click here.

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