Clear Street has moved stock-borrow locates into its ordinary short-sale workflow, a change that alters the sequence between creating an order and releasing it to the market. Its 23 October update says the feature is accessible through web, mobile, TradingView, API, FIX and its AI-facing interfaces. The firm estimates its shortable universe has expanded from approximately 6,000 easy-to-borrow stocks to around 11,000 names. These are approximate eligible universes, not assurances that a locate will be available for a particular size and time.[1][2]
The user sees an indicative borrow rate while preparing a short order. After submission, Clear Street requests a locate where required and releases the order only if the full requested quantity is located; otherwise it rejects the order. This places the locate check within the order workflow, before market execution.[1]
Locate conditions in the new workflow
| Step | Published treatment | Consequence |
|---|---|---|
| Order preparation | Indicative borrow rate | Estimate is not a binding final chargeSource 1 |
| Locate request | Full requested quantity needed | Partial availability can mean rejectionSource 1 |
| Expiry | 8pm ET; account-specific | No automatic cross-account or overnight carrySource 1 |
| Hours | Premarket, regular, after-hours | Locate-requiring shorts excluded overnightSource 1 |
Where execution can still fail
A stock appearing in the expanded list does not mean it can always be borrowed, and pre-trade prices are not final financing rates. Clear Street says the rate charged is determined at billing; the indicative number can change. Brokers or systematic traders that display the pre-order estimate as a fixed carry rate would be overstating what was promised.[1][2]
Locates are specific to each account and expire at 20:00 New York time. Clear Street supports locate-requiring shorts in premarket, regular and after-hours sessions, but not the new overnight segment. That is a significant distinction when equity-market data is moving toward 23-hour trading: broader market hours do not automatically extend the availability of every stock-borrow service.[1]
Practical implications for connected trading software
The API can return existing locates and indicative rates for up to 1,000 symbols per call. Connected software still needs to reconcile the accepted locate quantity and the resulting order status after submission. A locate is part of the pre-trade process; it should not be displayed as confirmation that stock has already been borrowed and delivered.[1]
The change removes a manual workflow obstacle for eligible margin customers. It does not eliminate borrow costs, hard-to-borrow availability constraints or short-selling loss risk, which may exceed the money deposited. A clear customer-facing order ticket should distinguish estimate, locate acceptance, exchange execution and subsequent borrowing charges.[1]
Sources & further reading
- Short Locates product changelog Clear Street · 23 Oct 2026 · Accessed 30 Oct 2026
- Short locates are now part of standard order flow Clear Street · 23 Oct 2026 · Accessed 30 Oct 2026