Securities Borrowing &
Lending

Securities borrowing and lending (SBL) is a temporary loan of securities between the lender and the borrower. This is done to allow the borrower who expects the price of a stock to fall to hold a short position for a longer duration, while the lender who loans the stock receives a lending fee from the borrower.

SBL is an important activity in many markets as it provides greater liquidity, tighter spreads, better risk management and possibly reduces the cost of capital.

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Benefits of Securities Lending

  • Potentially enhances yield of your portfolio
  • No minimum lock-in period
  • No disruption to trading activities
  • Hassle free lending arrangements
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Benefits of Securities Borrowing

  • Wide variety of stocks available
  • Ease of borrowing
  • No upfront deposit required
  • Ability to sell through other brokerages
  • Potential tool to cover error trade
  • No financing fee

Securities Borrowing & Lending

  • Potentially enhances yield of your portfolio
  • No minimum lock-in period
  • No disruption to trading activities
  • Hassle free lending arrangements
  • Wide variety of stocks available
  • Ease of borrowing
  • No upfront deposit required
  • Ability to sell through other brokerages
  • Potential tool to cover error trade
  • No financing fee