Securities lending explained

Market participants 

Lending Agent

Securities lending agents facilitate securities lending transactions by offering your available securities to borrowers, that is, the fully-paid securities you hold in your portfolio. Some custodians offer this service for the securities under their custody, but there are also independent firms who specialise in lending securities on your behalf. These specialist firms are called agent lenders.

Sharegain has reinvented the agent lender model by developing the world’s first Digital Agent Lender (DAL). The DAL is a fully-automated and transparent securities lending solution.

Sharegain’s founder and CEO, Boaz Yaari, worked in capital markets for many years. During this time, he discovered that the securities lending industry was largely dominated by a relatively small number of incumbent institutions. In many cases, investors have been unable to benefit from this practice because they were either tied to the decisions of their custodian or shutout by high barriers to entry. If you were fortunate enough to be on the inside of the ecosystem, you either had to invest considerable time and money in doing it yourself or hand significant control and responsibility for risk management and transparency to someone else. The problem is, without control or transparency how can you ensure best execution?

With Sharegain, there is no need to outsource your securities lending programme and in doing so relinquish control and transparency. We help you automate lending activity, whilst allowing you to maintain control without having to divert your focus from portfolio allocation and investment-making decisions. Also in accordance with transparency, Sharegain’s fee structure is very simple – if you don’t lend, you don’t pay. Our revenues are tied exclusively to the lending fees your portfolio generates – and neither does our solution prohibit the use of other agents.

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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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