Fidelity first announced it was pausing new long/short account openings in December 2025, and later increased financing rates for a large chunk of its intermediary partners. Schwab announced its own strictures a few weeks later.
Get up to speed on tax-aware long/short.
No one has spilled the beans on Schwab and Fidelity's motivations for making the changes. Still, my guess, following many conversations, is that it is a combination of risk management and business economics. I'm all ears if anyone would like to share.
Nonetheless, advisers are not happy, and are doing a handful of things to (successfully) get around Fidelity and Schwab's strictures, including...