Securities lending explained

Market participants 


A Lender (or more specifically a beneficial owner) is an owner of stocks, bonds, and ETFs who is willing to loan their securities to a borrower. In return for lending your securities, you will receive a lending fee for every day the security is on loan. Each loan is secured by the provision of collateral by the borrower.

Lenders rarely view securities lending as a priority when making investment decisions, but rather as a method to enhance their returns. Most lenders can expect to earn between 1 and 40bps across their portfolio, depending on the demand for your securities from borrowers and the number of your securities you wish to lend.

Until now, many beneficial owners were unable to benefit from securities lending, shutout by high barriers to entry. If you were fortunate enough to be a participant, you either had to invest considerable time and money in doing it yourself or hand over control and responsibility for risk management to someone else. The problem is, without having sufficient control or transparency, how would you ever ensure you received a fair deal? Sharegain has reinvented securities lending, making it accessible to all investors by focusing on simplicity, automation, and seamless integration.

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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