securities lending

securities lending
The outright transfer of securities against a promise to re-transfer subsequently equivalent securities; the borrower transfers to the lender other securities or cash by way of collateral. Typically, the loan will be made to a market maker or other dealer in securities to enable it to settle a bargain it has made to sell securities.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Securities lending — In finance, securities lending or stock lending refers to the lending of securities by one party to another. The terms of the loan will be governed by a Securities Lending Agreement , which, under U.S. law, requires that the borrower provides the …   Wikipedia

  • securities lending — The temporary transfer of securities from an investor s portfolio to a counterparty borrower. The counterparty may borrow to cover securities transaction fails (securities sold but for some reason unavailable for delivery to the buyers), short… …   Financial and business terms

  • securities lending — Also securities loan / securities borrowing Securities finance mechanism that involves transferring full ownership of securities, with or without a guarantee, with a contractual agreement that the seller will repurchase the securities in return… …   Euroclear glossary

  • Securities Lending — The act of loaning a stock, derivative, other security to an investor or firm. Securities lending requires the borrower to put up collateral, whether cash, security or a letter of credit. When a security is loaned, the title and the ownership is… …   Investment dictionary

  • securities lending — adjective Of or pertaining to the lending of securities by one brokerage to another, typically for a secondary purpose such as to cover a stock short position. Not to be confused with collateral type stock loans …   Wiktionary

  • International Securities Lending Association — The International Securities Lending Association ( ISLA ) is an independent trade association established in 1989 to represent the interests of the securities lending industry. Headquartered in the United Kingdom, the primary goal of ISLA is… …   Wikipedia

  • Term Securities Lending Facility - TSLF — A lending facility through the Federal Reserve that allows primary dealers to borrow Treasury securities on a 28 day term by pledging eligible collateral. The eligible securities under the term securities lending facility include AAA to Aaa rated …   Investment dictionary

  • International Securities Lending Association — (ISLA) England, Wales The trade association representing the common interests of participants in the securities lending industry. It publishes the Global Master Securities Lending Agreement (GMSLA) which is the standard form agreement used in… …   Law dictionary

  • Term Securities Lending Facility — Infobox central bank bank name in local = image 1 = US FederalReserveSystem Seal.svg image title 1 = Seal image 2 = Federal Reserve.jpg image title 2 = The Federal Reserve System Eccles Building (Headquarters) headquarters = Washington, D.C.… …   Wikipedia

  • securities loan — The loan of securities between brokers, often to cover a client s short sale; or a loan secured by marketable securities. Bloomberg Financial Dictionary Also securities lending / securities borrowing Euroclear Clearing and Settlement glossary… …   Financial and business terms

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