Securities lending

Securities lending

This overview is a guide to the Banking & Finance content within the Securities Lending subtopic, with links to appropriate materials.

Securities lending transactions are financial arrangements which are used in the international financial markets by financial institutions, corporate bodies, fund managers and others. They use industry standard documentation published by the International Securities Lending Association (ISLA).

Structure of a securities lending transaction

A securities lending transaction is a type of financial instrument involving the outright transfer of securities by one party (the 'lender') to another party (the 'borrower') in exchange for the outright transfer of collateral by the borrower to the lender, with a simultaneous agreement between the parties that the borrower will return the loaned securities to the lender at a future date in exchange for the return by the lender to the borrower of the collateral.

Strictly speaking, any asset that is capable of being transferred

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