fail to deliver listIt means that brokers that have sold stock for clients or sold for their own accounts (perhaps sold short) are failing to deliver the ownership of shares to the buying brokers in the required time (3 business days). The failing brokers will try and borrow the stock from other brokers who hold the stock in margin accounts so they can lend it to the brokers that are failing to deliver (usually for a borrowing fee). The buy broker can insist that the stock be delivered and issue a 'buy in notice'. They are reluctant to do this based on the 'buddy' system (if i do not buy you in at the market you will not do it to me). However if the client of the buying broker insists on timely delivery, the buy broker has no choice but to issue the 'buy in notice,. This results in a short squeeze.. To make the list, it automatically means that it is very difficult to short the stock on a DECLARED basis as the selling broker normally allows you to short a stock if he is sure that he has the stock to deliver in margin accounts or can borrow the stock. In broker's terminology it means that the stock is 'tight'. The officially published trading rules on the TSX and the TSX Venture are so vague that you can drive an oil sands truck through the gaps without hitting anything. That leaves the 'Naked Short' option. It is supposed to be illegal but 'de facto' it is engaged in all the time and the only way to avoid this from happening is that buyers of the stock always ask for delivery which is normally not done.
The bottom line is that making the list is an indication that the short position is increasing and that it is becoming more difficult to short the stock. It also could be an indication, in the juniors, that a financing is about to be announced because the underwriting dealers will try and short stock ahead of the official underwriting announcement so that they can buy back their short position through the underwriting. In any case I believe making the list is positive.
Maldoror