Came across this note in SageTrader’s 2023 Annual Report:
Stock Loan Locate Fees
The Company maintains Securities Lending agreements with several broker dealers (Velocity, Clear Street, Muriel Siebert) for the benefit of customers who as part of their trading strategies need to sell stocks short. Under these agreements they provide a daily machine readable “Easy to Borrow List” ("ETB") and provide “Locates” on securities, which are not on the ETB List. The customer is quoted a rate per share displayed in their trading platform. Should they decide to accept the locate, the Company is given a discounted rate by the broker dealer. These discounts range from 30%-50% of the rates quoted to the customer.
