SHORT SALE CONSULTING

Navigating Short Sales, Locates, Regulation & Risk — With Confidence

 

In addition to offering innovative and insightful technology through our LocBox platform, we also provide industry-leading consulting services tailored to the unique needs of broker-dealers, trading firms, clearing brokers, and public stock issuers.

In today’s fast-moving and increasingly scrutinized regulatory environment — especially around short selling, securities lending, and fails-to-deliver — it’s no longer enough to rely on outdated systems or boilerplate procedures. Regulatory bodies are shifting expectations quickly, and your firm’s ability to adapt and document its processes is more important than ever.

At LocBox, we go beyond software. Our team brings decades of real-world experience across market structure, brokerage operations, clearing, securities lending, and trading compliance. We provide a hands-on, consultative approach to help clients stay ahead of regulatory change, reduce operational risk, and enhance transparency.

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Our Consulting Services Include:

• Locate & Pre-Borrow Workflow Audits
  Review your current systems and workflows to ensure clear separation between locates and pre-borrows, eliminate settlement risk, and prepare for future mandates.

• Written Supervisory Procedures (WSPs)
  Drafting, updating, or reviewing your firm’s WSPs to ensure they align with FINRA, SEC, and Regulation SHO requirements — especially around Rule 204, locate documentation, and closeout procedures.

• Short Sale Program Design & Review
  Build or refine your firm’s short sale infrastructure, from order handling to trade reporting and post-trade delivery. Ensure readiness for tighter rules around market maker exceptions, pre-borrow mandates, and more.

• Issuer-Side Defense & Surveillance
  Public companies can work with us to understand suspicious trading activity, assess settlement data, and establish procedures to defend against abusive short selling and failure-to-deliver behavior.

• Regulatory Exam Preparation
  Prepare for FINRA or SEC exams with confidence. We walk your team through what regulators are looking for and ensure your documentation, systems, and supervision are fully aligned.

• Custom Training for Staff & Supervisors
  We provide custom education sessions to help your team understand the real-world risks and responsibilities tied to short selling, fails-to-deliver, and lending activities.

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Whether you're building a new trading desk, refining compliance procedures, or responding to heightened scrutiny around short activity, LocBox’s consulting team delivers clarity, experience, and action. Our goal is simple: help you operate with confidence, minimize exposure, and meet the highest standards of market integrity.