Automated. Flexible. Transparent. SLaaS is the next generation of securities lending. In this video Matt Barnett, Head of Operations, breaks down how it works – from systems integration and the lifecycle of loans to collateral management and billing. You set the terms, we do the rest.
"We work with our clients every step of the way to go live in weeks. With SLaaS you automate everything, enabling you to focus on what’s really important to your clients and your business."
Matt Barnett, Head of Operations
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FAQs
Securities lending, like all market activities, creates a risk/reward trade-off for the lender, borrower and agent lender. The primary risks are:
Borrower/counterparty default: Capital strength and effective collateral management are essential to managing potential default risk. Sharegain only lends to top tier banks, supported by the over-collateralisation of loans (marked-to-market daily at an average 105%), meaning much of the risk is mitigated by the contractual obligations each loan is governed by.
Operational: We manage this through a robust operating framework, integration with global leaders in the post-trade space and a comprehensive understanding of transactional flows and lifecycle management.
Cash collateral reinvestment: Sharegain operates a non-cash collateral lending solution exclusively – ensuring this commonly referenced risk is absent altogether.
No.
Sharegain is not a bank or a broker with an app. We are a pure tech solution that effectively operates as a bolt-on to your existing arrangements. We’re FCA authorised and regulated and can connect to almost any bank or broker, thus eliminating the need to move your portfolio in order to activate our solution.
We only lend your securities to top tier banks and each loan is over-collateralised, on average 105% of the value of the loan. The collateral is held and managed by Bank of New York Mellon (BNYM), the world’s largest custodian.
Sharegain does not hold or take title of your securities or lending revenues at any time. Your securities never leave your bank/broker account until they are loaned out and only after the collateral is already in your account at BNYM.
Securities lending is a long-established practice and integral to capital markets. As a lender you are protected by a number of industry standard agreements, such as the Global Master Securities Lending Agreement, which governs all loans.
Both Sharegain and our counterparties (collateral managers and borrowers) adhere to strict compliance protocols, including a comprehensive Know Your Client (KYC) for all of our lenders, ensuring a rigorous and comprehensive due diligence process. We also facilitate a due diligence process of all our borrowers – who are top-tier banks.
All loans are over-collateralised at 105% of the value of the loan. This collateral is held and managed at Bank of New York Mellon (BNYM), one of the world’s biggest custodians.
In the event of a borrower default, you have the right to receive the collateral or ask for its liquidation and receipt of the proceeds.
Sharegain only accepts “High-Quality Liquid Assets” (HQLA) as collateral. Collateral is posted on a ‘pre-pay’ basis, meaning delivery of loaned securities will only occur once collateral is confirmed as settled and allocated to your collateral account. Loans and collateral are monitored in real-time and marked to market at least daily.