Securities lending is a well-established practice, and a $2tn industry, in which owners of stocks, bonds and ETFs lend them out in return for a payment known as lending revenue- rent. Just like lending any other financial asset, the lender receives such rent while retaining all the benefits of ownership – dividends, coupons and the potential appreciation of the asset.

Securities lending plays a key role in capital markets. It brings greater liquidity and efficiency to the market, ensuring the settlement of certain trades, promoting price discovery and facilitating market making.