Securities lending is a heavily regulated and globally supervised industry. Sharegain is authorised and regulated by the FCA. You can view our authorisation here.

Securities lending, like all market activities, creates a risk/reward trade-off for the lender, borrower and agent lender. The primary risks are:

Borrower/counterparty default: Capital strength and effective collateral management are essential to managing potential default risk. Sharegain only lends to top tier banks, supported by the over-collateralisation of loans (marked-to-market daily at an average 105%), meaning much of the risk is mitigated by the contractual obligations each loan is governed by.

Operational: We manage this through a robust operating framework, integration with global leaders in the post-trade space and a comprehensive understanding of transactional flows and lifecycle management.

Cash collateral reinvestment: Sharegain operates a non-cash collateral lending solution exclusively – ensuring this commonly referenced risk is absent altogether.

We only lend your securities to top tier banks and each loan is over-collateralised, on average 105% of the value of the loan. The collateral is held and managed by Bank of New York Mellon (BNYM), the world’s largest custodian.

Sharegain does not hold or take title of your securities or lending revenues at any time. Your securities never leave your bank/broker account until they are loaned out and only after the collateral is already in your account at BNYM.

Securities lending is a long-established practice and integral to capital markets. As a lender you are protected by a number of industry standard agreements, such as the Global Master Securities Lending Agreement, which governs all loans.