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 ?
The International Securities Lending Association (ISLA) a global regulatory association defines Securities Lending as the temporary transfer of securities by one party, the lender, to another, the borrower.
The GI magazine reported in September that Day had left UBS where he was head of securities lending trading EMEA, and global head of securities lending and borrowing sales and marketing.
Leading to a tax accurate application of shares on loan to specific lots, the new functionality injects securities lending information into current reports seamlessly with the capability of programmatically translating CUSIP level data into lot level information,
Securities lending lost some of its appeal when some plans had difficulties during the financial crisis with the collateral used to back lending.
The Asian Securities Financing Forum was chaired by Steve Sedgwick, CNBC, and attracted 150 senior securities lending practitioners.
In addition to confirming the tentative recovery now taking place in the securities lending market, the study draws a number of conclusions:
Cantor Fitzgerald, which lost about 675 people when the World Trade Center towers collapsed, will exit the securities lending business upon completion of the deal.
The Global Investor/isf survey asked beneficial owners to assess the performance of their securities lending agents across a range of service categories.
The integration is claimed by BNY Mellon to establish its Securities Finance business as one of the largest providers of securities lending services in the world, with trading offices in New York, Pittsburgh Toronto, London and Hong Kong.
With this, Citi has become the first global custodian bank to provide securities lending services on National Stock Exchange (NSE) in India.
DiNardo, who reports to James Slater, global head of securities lending, is responsible for implementing strategic initiatives, coordinating the key functions of the business, and directing the risk and compliance requirements of securities lending.
Companies that sponsor retirement plans haven't abandoned securities lending on a wholesale basis in the wake of last fall's problems, but many are taking measures to rein in the risks involved.

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