Comment on BTST/ATST( Buy/Acquire Today Sell tomorrow)
commented on
31 Jul 2013, 07:48 AM
Once a stock has been sold by a client, his broker needs to initiate a PoA (Power of Attorney) to transfer the shares from the client’s account to meet the Exchange obligation…If you are the counter party to this contract (buyer) and in case the broker doesn’t initiate the transfer, then the shares you purchased would be short delivered to you and your subsequent sale transaction the next day (BTST) would result in a short delivery..That’s why I said “little risk” 🙂