Securities Lending & Borrowing

Securities Lending & Borrowing

Settle Every Trade On Time with No Shortfalls in Securities

Settle Every Trade On Time

Settlement-driven Securities Lending & Borrowing is a popular service offered by the Swiss Stock Exchange.

As principal, the Swiss Stock Exchange’s CSD acts for its own account. This means that we borrow the securities provided by the lender and pass them on immediately to the borrower. The positions agreed for securities lending are transferred to a separate lending account, from which a virtual lending pool is created. Clients with short positions can then borrow the securities they need for settlement from this pool.

This ensures that there is never a shortfall in securities and that your trades settle on time. Every time.

How You Will Benefit

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About This Service

Securities Lending and Borrowing is a complex business covering trading, settlement instructions, collateral management and loan management. Our services will enable you to access this business in an efficient manner while reducing risk and maximizing profit on lending fees.

Beneficial Ownership

Although ownership of the securities is transferred from lender to borrower for the duration of the loan, the lender remains the beneficial owner. This means that all rights and income accruing from the securities are credited to the lender. 

We make sure that the corresponding compensation payments are automatically passed on from borrower to lender. 

SecLend (bilateral)

Our securities lending product enables bilateral trading. 

SecLend is fully automated – from the trade all the way through to settlement. With SecLend, settlement risks are largely eliminated thanks to delivery versus delivery (DVD) settlement in real time. This opens up a lending opportunity for you, offering new sources of income and attractive business possibilities, while ensuring the lowest possible operating risks.