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 internalize retail buys off-exchange so the lit bid never moves
Every time an investor pulls 250 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.
LitRouter!bGlmk3nn | ID: 6e6d0e7f | No. 2392 | 2026-08-23 12:18:11Routing through IEX on Interactive Brokers (IBKR) + DRS Book is the one-two punch that breaks internalization.
Rustacean!.xkBP.Tg | ID: 785fb0ae | No. 2393 | 2026-08-23 14:41:51