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What is securities lending?

What is securities lending?

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.

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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.
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