SLB – Securities Lending & Borrowing
Our settlement-fails-driven offering, SLB, automatically draws assets from a centralized lending pool. The assets to be used exist in a special safe custody account of the lender – this ensures that there is never a shortfall in securities and that your trades settle on time. Every time.
Settlement-driven Securities Lending & Borrowing is a popular service offered by
SIX Securities Services, where clients act as either lenders or borrowers.
The positions agreed for securities lending are transferred to a separate lending account, from which SIX SIS Ltd creates a virtual lending pool. Clients with short positions can then borrow the securities they require for settlement from this pool.
As principal, SIX SIS Ltd acts for its own account. We borrow the securities provided by the lender and pass them on immediately to the borrower.
SIX SIS Ltd's Securities Lending & Borrowing offering is particularly attractive in that 60% of the lending fees are charged to the borrower. These fees are then passed on to the lender, generating a healthy profit.
Although ownership of the securities is transferred from the lender to the borrower for the period 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. SIX SIS Ltd ensures that the corresponding compensation payments are automatically passed on from the borrower to the lender.