| Author | Source |
|---|---|
| u/ljgillzl |
Hey apes,
There is a post making the rounds by u/Region-Formal titled
THE MOTLEY FOOL’S money trail to Citadel
It is a great piece and I think everyone should check it out, I’ll put the link at the bottom.
So, basically the title of my post sums it up. For anyone who has been asleep for the past 3 months, iBorrowDesk.com has been referenced many times due to them showing the amount of shares available for borrow and the corresponding %fee for doing so. This info on their site is STRICTLY from Interactive Brokers (IBKR), there are plenty of other sources to borrow shares from to short with, but being that IBKR is one of the largest, we can at least get a vague idea. Or … can we? Here is the TLDR from the linked post at the bottom:
TL;DR Interactive Brokers receives significant sums of money from both The Motley Fool (through their Motley Fool Wealth Management subsidiary) and from Citadel Securities (through their IBKR Lite payment for order flow product for retail users).
So, obviously this creates a situation where the data provided by IBKR concerning GME shouldn’t be taken as gospel. We have long scoffed at the borrow fee and it’s lack of correlation with the available shares, and while that data could be true (especially if we believe the theory that DTCC & SEC are trying to keep the price down until they have everything in place for the 🚀), this still creates a situation that we, as apes, should be all too familiar with … Is there any data out there on GME that we CAN trust?
If there is anything to supplement to this post and/or if there is a conflict in my logic that iborrowdesk’s data can’t be trusted, please say so. This ape is smooth-brained.
MY POSTS TL;DR:
Interactive Brokers is the firm iBorrowDesk reports on. They get sums of money from Citadel, which calls into question the validity of the GME information they show concerning shares available and borrow fee.
Link to post mentioned by u/Region-Formal
This is not financial advice.