Securities Lending in Markets We Service
Securities Lending Programs in 10 Foreign Markets
We provide securities lending via stock loans, repo/buy backs and block trades for securities traded on the exchanges listed in the table below. For some portfolios pledged for stock loans a No-Title Transfer can be arranged.
Brokerage custodial services for our securities lending programs are located in Hong Kong, Indonesia, Singapore, South Korea, and Vietnam.
| Country | Exchange | Exchange Abbreviation |
| Australia | Australian Securities Exchange | ASX |
| Canada | Canadian National Stock Exchange | CNSX |
| Canada | Toronto Stock Exchange | TSX |
| Germany | Frankfurt Stock Exchange | FWB |
| Hong Kong | Hong Kong Stock Exchange | HKEX |
| Indonesia | Indonesia Stock Exchange | IDX |
| Singapore | Singapore Stock Exchange | SGX |
| South Korea | Korea Stock Exchange | KRX |
| Taiwan | Taiwan Stock Exchange | TSEC |
| Vietnam | Vietnam Stock Exchange | VNX |
Please inquire if you do not see your exchange listed as we may be able to help.
Securities Lending and Traditional Lending Practices
Share Secured Loan and Asset Utilization
A shared secured loan uses a borrower’s investment portfolio as collateral, allowing borrowing against the value of their unrestricted stocks. Traditional loans, on the other hand, often require physical assets like real estate or vehicles as collateral, or they may be unsecured, relying on the borrower’s credit history and income.
Loan Purpose and Restrictions
Securities lending is typically non-recourse, non-purpose, meaning the funds can be used to buy more securities or pay down margin loans. Traditional loans have fewer restrictions and can be used for a variety of purposes, including investment activities.
Loan-to-Value Ratios
The LTV ratio in securities lending is determined by the value of the securities and can vary widely, offering potentially higher borrowing limits. Traditional loans have LTV ratios based on the appraised value of the collateral which may result in lower borrowing limits.
Interest Rates and Costs
In securities lending often features competitive interest rates, usually tied to benchmarks like the LIBOR or prime rate, and offer interest-only payment options. Traditional loans can have higher interest rates and typically require principal and interest payments over a set term.
Flexibility and Speed
Securities lending provides quick access to funds with a streamlined application process, making it an attractive option for those needing immediate liquidity. Traditional lending processes can be more time-consuming, with extensive documentation and longer approval times.