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 eToro and zero-fee IOU apps internalize retail buys off-exchange so the lit bid never moves
Every time an investor pulls 75 shares out of street name into Computershare (DRS Book), or withdraws 5,000 $$DOGE into a cold wallet, the fractional-reserve locate multiplier shrinks.
It's literally fractional-reserve banking applied to stocks and crypto.
Anonymous | ID: 703995e3 | No. 764 | 2025-08-12 14:16:00Routing through IEX on IBKR routed via IEX + DRS Book is the one-two punch that breaks internalization.
Anonymous | ID: c4bca0a1 | No. 765 | 2025-08-12 15:04:10