How is my lending revenue calculated?
Your Lending revenue is calculated daily using the following formula:
Market lending rate – The ‘price’ borrowers are paying to borrow securities on the given date. This is quoted in basis points (annually). In order to convert this to a percentage, we divide by 10,000.
Quantity – The number of nominal units of the loaned security.
Price – The daily price of the security at close of business.
Days on Loan – The number of calendar days the security was on loan, on an actual/360 basis.
For example:
If you wanted to calculate the lending returns for Tesla Inc., assuming the following data doesn’t change for the duration of the 112-day loan (inc. price):
Price = $350, Lending Rate = 100bps, Quantity = 100,000 and Days on Loan = 112.
Please note that your lending revenue accrues on a daily basis, based on each day’s lending rate and market price, and is paid monthly in arrears.
Have a question?
Ask our experts
With securities lending, as with other investment activities, your capital may be at risk.
Sharegain Ltd. is registered in England and Wales (no. 09600298) and is authorised and regulated by the Financial Conduct Authority (no. 730395).
*This website is directed exclusively at and intended to be used only by professional investors and retail investors with direct holdings in stocks, bonds and ETFs in excess of £500,000. Our website is not directed at any person or institution where (by reason of nationality, residence or otherwise) the availability of our website or securities lending in general is prohibited. The material on this website is for general information and should not be considered as investment advice or solicitation to be involved in securities lending or to use one of Sharegain’s services. Securities lending involves risks and we have not and will not assess whether our service is appropriate for you. If you decide to lend your securities, your capital may be at risk. Please consult professional advisors if you are in any doubt as to whether the service would be beneficial for you or whether you require any consent or need to observe any formalities, before deciding to engage in securities lending.
© Copyright 2019 Sharegain Ltd
+44 (0) 20 3884 2405 info@sharegain.com 9 Dallington St, London EC1V 0LN