I might have underestimated the lending feature in Invest.
Lots of the big short positions are taken by funds who borrow the shares from other funds. Thus I could completely exclude them (the shorts by funds) from what happens with T212 share lending. Also total short positions usually are a fairly small percentage of the total share capital of the company (unless the company is in a really dire situation). Thus my assumption is that at point in time only a tiny percentage of a company’s shares need to be lent. I had also assumed that if total shorting in the market was 1% of a company’s shares only 1% of shares needed to be lent to support the lending and I’d assumed T212 lending would be roughly proportionate with that (ie lots of other source would equally lend - ie other platforms, brokers…). Thus at most I was expecting a tiny percentage of shares in Invest to be lent out. However, I’ve got one share where almost 100% of my shares in that company are lent. I’m happy with this because I suspect the share is likely to rise significantly in the near future and that the current low is a buying opportunity. I’m also happy that if the price does rise lots of shorts closing will only push the price higher. So I don’t have a concern about the lending or the volume of lending (the amount I hold in this company is also trivial) but I am very surprised at the % of shares being lent. Maybe I had simply got my calculations wrong and maybe shares in ISA etc can’t be lent and the available pool of shares available for lending is extremely limited (eg perhaps many brokers not releasing their shares for lending) and thus even a fairly modest level of shorting results in a massive demand for shares to borrow from the available pool.
I was just curious if anybody knew more about the mechanics and why the level of lending in T212 Invest is so high? I’m not complaining I assuming interest from lending would be close to zero and at the moment its looking like that it might be a reasonable amount at times. Just very curious