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Returns/Recalls/Rerates

The Return/Recall panel displays any return or recall requests when you are logged in, and allows you to send rerate and return requests.

Borrowing

Once you borrow shares, you can return them using the Return order function, or the lender can recall the shares at any time. When borrowed shares are recalled, they are removed from your account, you are notified in the Return/Recall panel of TWS, and the recall will show up in the Borrow Activity section of your Activity Statement. If you would like to negotiate a better rate on your borrowed shares, you can initiate a Rerate request order. If the rerate request is rejected, your shares are immediately returned to the lender.

Please note that if you have borrowed to cover a short position, and then purchase the shares and no longer need to maintain the borrow position, the borrowed shares are not automatically returned; you must return the shares.

Lending

As a lender of shares, you can recall your shares at any time except on the same day that you lent them, using the Recall order function.

The borrow may want to negotiate the borrow rate by submitting a rerate request. You will be notified of a rerate request only if you are logged into TWS. If you receive a rerate request, you must respond within 25 minutes; if you do not, the request is automatically rejected and all shares are returned to you. This time limit applies regardless of whether or not you are logged into TWS.

The borrower may return the shares to you at any time. You will be notified of a customer return in the Return/Recall panel.

In the case where you have lent a quantity of your fully-paid shares and subsequently sell the shares, IB will automatically recall the shares the following day. If IBdoes not receive the shares from the borrower in time for settlement of the stock sale, the stock sale will be completed but the loan will remain open until the shares are returned.

Rerate and recall requests from the counter party to whom IBhas lent your shares will display in the Return/Recall panel.

• To view the Return/Recall panel, click the Show Return/Recall Requests icon on the right-hand tab of the trading page.

To return borrowed shares

1. Right-click the ticker and select Trade then select Return Shares.

2. Confirm the order parameters and transmit the order by clicking the ‘T’ in the Status field.

To request a rerate on borrowed shares

1. Right-click the ticker and select Trade then select Rerate.

2. Enter the rate you would like to receive in the Lmt Price field.
3. Transmit the order by clicking the "T" in the Status field.

Note:  If your rerate request is rejected, the transaction automatically becomes a return and your borrow position is reduced by the size of the request.

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