How do I lend out my shares for shorting?

[martaart077]

As a retail investor holding a largish long term position and being comfortable in the long term prosperity of the company, how do I go about lending my shares out for shorting?

 

[divs4ever]

i suspect you need a full-service broker for that

both Vanguard and BlackRock do that already for ( allegedly ) mutual benefit ( with the ETF and managed fund holdings )

cheers

 

[martaart077]

Thank u divs.
DYOR. And I have.
Seems that USA broker such as Robin Hood offer that service for retail USA clients.
Then I came across low cost broker in Australia offering same. (I'm wary of smaller low cost internet brokers as I can forsee circumstances where they may close shop and what was mine, becomes theirs.)
Nevertheless, be bold.
So in interest of research, I have opened an account and will take a small position to test it out.

Interested to hear of others who have been down this path.

 

[frugal.rock]

I had thought that the lending of shares in Australia for the purposes of shorting wasn't permitted, which may be why we have an options market, for shorting purposes.
I may be way off there though. Had thought the lending of shares thing was US and others.

 

[divs4ever]

I had thought that the lending of shares in Australia for the purposes of shorting wasn't permitted, which may be why we have an options market, for shorting purposes.
I may be way off there though. Had thought the lending of shares thing was US and others.

my instinct was that it would highly regulated in Australia , but have noticed SOME international players ( like Norges acquire share holdings and sometimes lend them , not just the usual suspects , like Credit Suisse , Goldman Sachs ) and some long/short funds operate using ASX listed stocks

now as i understand it NAKED-short-selling in still strictly prohibited in Australia ( unlike in the US , as the Game Stop saga illuminated )

but we DO have lists of shorted stocks

TOP SHORTED STOCKS​

ShortMan - Top 100 shorted stocks on the ASX

The top 100 shorted stocks on the ASX, by short position. The full list of shorted positions is also available for download.

www.shortman.com.au

so SOME are obviously allowed to borrow , so somebody else is out there lending ( apparently ) legally

 

[MovingAverage]

I had thought that the lending of shares in Australia for the purposes of shorting wasn't permitted, which may be why we have an options market, for shorting purposes.
I may be way off there though. Had thought the lending of shares thing was US and others.

My understanding is that lending shares out is ok...it is naked shorting that is banned here.

 

[martaart077]

Update
So seems the new broker does have facility to lend out USA shares, but not Aussie shares...... yet.
and to rub a bit of salt in the wound, their low costs are increasing. Seems they were too low.