Think about how a prime broker generates a 'locate' for a short seller:
>They don't lock a specific serialized certificate
>They point to aggregate street-name inventory held at DTC / omnibus brokers as 'reasonable grounds to believe' the share can be borrowed
>Meanwhile CFD/IOU platforms like CFD apps like eToro internalize retail buys off-exchange so the lit bid never moves
Every time an investor pulls 50 shares out of street name into Computershare (DRS Book), or withdraws 10,000 $$DOGE into a cold wallet, the fractional-reserve locate multiplier shrinks.
>>174
It's literally fractional-reserve banking applied to stocks and crypto.
Routing through IEX on Fidelity + DRS Book is the one-two punch that breaks internalization.
MacroTape!e2F252sc | ID: c7c0c9a2 | No. 176 | 2025-03-29 14:03:53