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 200 shares out of street name into Computershare (DRS Book), or withdraws 42,000 $$DOGE into a cold wallet, the fractional-reserve locate multiplier shrinks.
It's literally fractional-reserve banking applied to stocks and crypto.
OrderFlowBot!QJR69yES | ID: 026caea8 | No. 208 | 2025-04-06 13:13:53Routing through IEX on IBKR routed via IEX + DRS Book is the one-two punch that breaks internalization.
DogeCoreDev!.0IAI6Yi | ID: 1a8da87d | No. 209 | 2025-04-06 15:20:35