Selling short stocks*

With Mondeum Capital (UK), clients can borrow from our extensive list of stocks to short. A stock can either be Hard to Borrow (HTB) or Easy to Borrow (ETB). Clients who wish to short HTB stocks can utilize Mondeum Capital (UK)’s Stock Locate service via the DAS Trader Pro and Sterling Trader Pro platforms to place locate requests. All short locate requests are valid for same-day trading, and new locate requests are required for each trading day. Any approved locate that is not used the same day expires at the end of the trading day.

Each locate request will be given a per share rate, dependent on the stock. For example, a locate request for 100 shares of ABC stock may receive a rate of $.05 per share. If you accept, you will be charged a $5 locate fee whether you trade the stock or not. Locate requests also incur a $25 service charge. This means for locating 100 shares ABC, you have incurred a $30 fee. You can then choose if and when to actually execute a short on the stock. For shorts held overnight, you will incur a Short Position Overnight Fee of 0.5% the market value of the position.

Stock loan

With Mondeum Capital (UK), once a client borrows stock for shorting and the short position is held overnight, a stock loan fee is applied.

The Stock Loan fee is a variable fee applied by the clearing firm(s) based on their inventory of the stocks shorted daily which is passed on to the client. This is separate from the intra-day stock locate charges and overnight margin interest.

* A short position being held overnight cannot exceed 10% of an account’s value.