The people making a big deal of it are clueless. They're the folks who like to blame their poor investment decisions on Shorty.
Ironically--given what those people are saying--the reason NSCC wanted to shut down the Stock Borrow Program is that use was declining.
I think the Get Shorty bunch that's been screaming about the Stock Borrow Program for years ought to be embarrassed by the truth:
Over the past few years the use of NSCC’s Stock Borrow Program, which allows NSCC Members to elect to loan their excess positions to NSCC’s Continuous Net Settlement (“CNS”) System in order to facilitate the completion of CNS long allocations, has declined. As such, NSCC is proposing to amend its Rules in order to discontinue the Stock Borrow Program.
...In 2007, NSCC borrowed a daily average of approximately $1.85 billion in market value at the close of each day from the approximately 21 Members that participated in the Stock Borrow Program that year. Usage of the Stock Borrow Program has since dropped by almost 95%. In October 2013 only three Members participated in the Stock Borrow Program, and the average daily value borrowed at the close of day during that month was approximately $81 million. Usage of the program has continued to drop since the end of October 2013. Given this dramatic reduction in the use of the program, NSCC has determined that it is not economically efficient to maintain the service, and NSCC is proposing to amend its Rules in order to discontinue the Stock Borrow Program. NSCC has informed the Members using the Stock Borrow Program of its intent to discontinue the program…
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