The ELocate is the Spark Addin which allows to send a request to the Prime Broker asking for the possibility to SHORT LOCATE a Short Sell (SS) trade.
HOW TO SHORT LOCATE WITHOUT THE ELOCATE ADDIN
To short locate an order, you need to ask permission to the Prime Broker. If everything is OK, they will provide you with the Locate ID.
Once you have it, open your Transaction History report or Transaction Current report (depending on the transaction date). Find short sell order you want to short locate and double click on it. Within the order window, open Placements tab (screenshot below), mark the Short Locate Required checkbox, select your Broker and add the Locate ID your broker gave you. Click on Create.
HOW TO SHORT LOCATE WITH THE ELOCATE ADDIN
With the ELocate addin, short locate can be done automatically. To do so, find the short sell order you want to short locate on your Transaction History report or Transaction Current report (depending on the transaction date), right click > ELocate > Select the broker you wish from the list, as you can see below:
This will automatically request the short locate to the Prime Broker. Right now, ELocate works with the following brokers:
- UBS
- Credit Suisse
- Morgan Stanley
- Goldman Sachs
Additionally, you have two other options in the dropdown menu:
- ELocate to Prime: This sends via email the Elocate request, not to any of the brokers listed above, but to the trade’s prime broker.
- Set to Pending Manual: through this option, you generate the request as you would have done without the Elocate addin (first case of this article). This is a helpful option for those cases in which the broker forgets to approve/reject the petition.
There are three different kinds of response status:
LOCATE_PENDING -> Keeps requesting.
LOCATE_APPROVED -> Request approved.
LOCATE_REJECTED -> Request rejected.
After the user has received one of the above responses from the broker, there’s the possibility to change the status to LOCATE_MANUAL, by right clicking on a SELL SHORT trade and selecting Set To Locate Manual.
- LOCATE_MANUAL -> stops request.
When setting the trade to MANUAL Status, the ELocate will stop sending requests to the Broker, so the user can requests it manually.