Let's say a trader on the cash trading desk buys shares from a short-seller who fails to deliver. Does sec lending know that those shares have not yet settled?
If it is incorrectly assumed that those shares settled properly on T+2, would the bank potentially loan those shares out prior to delivery?
Let's say a trader on the cash trading desk buys shares from a short-seller who fails to deliver. Does sec lending know that those shares have not yet settled?
If it is incorrectly assumed that those shares settled properly on T+2, would the bank potentially loan those shares out prior to delivery?