Securities Lending


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Securities Lending

The act of loaning a stock, derivative, or other security to an investor or firm. Securities lending requires the borrower to put up collateral, whether cash, security, or a letter of credit. The completion of this transaction requires a securities lending agreement, which states, among other things, how long the loan lasts, what fee the lender receives, and the amount and type of collateral. Securities lending is important to short selling, in which an investor borrows securities in order to immediately sell them. The advantage of securities lending to the borrower is the fact that he/she may profit from shorting the securities; the advantage to the lender is the fee (and, if the borrower fails to repay, the collateral).
References in periodicals archive ?
EquiLend is a securities lending technology and market data provider owned by a group of 10 leading financial institutions, including Northern Trust, connecting borrowers and lenders through a common, standards-based global lending platform.
Based in London, Gillingwater forms part of Northern Trusts global securities lending team where he is responsible for all aspects of fixed income trading strategy.
In addition to State Street, he was previously a Senior Managing Director at Premier Global Securities Lending and a Financial Advisor at Morgan Stanley.
DE) has said that Andrew Pettit has joined Agency Securities Lending (ASL) in the Americas.
The upgraded module lowers the burden of manually monitoring securities lending for REIT's and its impact on tax reassignments, saving time and cutting the risk of reporting errors.
9 trillion globally, securities lending has evolved from a back office operational function to an investment management and trading discipline.
According to the report, Day is expected to take up a European head of securities lending position, based in London, reporting to James Slater, global head of securities lending and finance.
With this, Citi has become the first global custodian bank to provide securities lending services on National Stock Exchange (NSE) in India.
Greg Chamberlain, who recently joined Deutsche Bank, will lead Agency Securities Lending trading operations in Asia and will be based in Hong Kong.
BNY Mellon (NYSE: BNY), a company involved in investment management and investment services, and CIBC Mellon, its long-established Canadian joint venture with Canadian Imperial Bank of Commerce, yesterday announced the integration of their respective securities lending desks.
In a global securities lending environment dominated by over-the-counter trading, this service will allow both Citi s domestic Indian and offshore clients, for the first time, seamless market access to the anonymous exchange-traded central counterparty model prevalent in India.
As the market leader in securities lending auctions, we ensure each program remains a bespoke experience for our clients incorporating over 30 markets, more than 40 borrowers and a variety of collateral options.

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