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 ?
Its offering features US prime brokerage, international prime brokerage, electronic and high-touch execution, a full outsourced trading solution, commission management, financing and stock loan, middle and back office support, pre and post trade compliance, capital introduction, new launch consulting, and portfolio and risk analytics.
The connection will provide market participants with straight-through trade processing capabilities and electronic trade submission to OCC's stock loan clearing solutions.
In a typical mortgage loan, a house or apartment building may serve as collateral; whereas in a stock loan (legislated in Canada, but presently not available in the USA) a portfolio of stocks may serve as collateral.
EeAo A lack of standardisation in post-trade processing of transactions EeAu The processing of some asset classes (notably OTC derivatives, but also repos, collateral movements, stock loan and investment fund settlement and registration) continues to be impeded by low levels of standardisation.
A lack of standardisation in post-trade processing of transactions - The processing of some asset classes (notably OTC derivatives, but also repos, collateral movements, stock loan and investment fund settlement and registration) continues to be impeded by low levels of standardisation.
The ministry has translocated game to 35 farms/ beneficiaries through the Wildlife Breeding Stock Loan Scheme.
This case involved a stock loan, unlike the transaction in Rev.
Buy-side clients in North America and Europe will have access to a complete provider of investment services in Mexico from custody to asset management, foreign exchange, research for equities, derivatives, fixed income products and stock loan.
The prospectus stated that the proceeds are to be divided equally between working capital supplement and stock loan payment.
The Tax Court also denied stock loan treatment to participants in a scheme by Derivium Capital LLC that had been initially promoted as providing a strategy for small investors that had usually been reserved for the wealthy For background, see U.
equities, options, fixed income, commodities, correspondent prime brokerage, and access to Merrill Lynch's stock loan desk.
The complex stock loan arrangement is one illustration of how the global financial turmoil has affected a local business.