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<p>[QUOTE=&quot;NorthKorea, post: 1295947, member: 29643&quot;]I&#039;m fairly certain (but can&#039;t recall why) that isn&#039;t possible anymore. I believe commodities ETFs are still governed by futures requirements. Even if they&#039;re not legally treated that way by exchanges, most retail investors would be subject to restrictions by their brokerage. For the most part, this would prevent such transactions.</p><p><br /></p><p>Edit: Also, the scenario is still false. The brokerage would know that the net demand is 200, so the &quot;extra&quot; 100 would be accounted for via the brokerage&#039;s holdings. They would be net 0 with rental being paid against their long position.</p><p><br /></p><p>The problem with your explanation is that you&#039;re assuming the holder lending the shares isn&#039;t aware that their shares are being lent. The only reason that case exists in the real world is because the brokerage is taking the liability of the shares against their long positions. The actual shorting mechanism requires that shares be available for lending. The moment that a share has been lent for a short, it is no longer a &quot;long&quot; holding of the lender. The &quot;long&quot; is actual a debenture, not the physical holding itself.[/QUOTE]</p><p><br /></p>

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