Securities Borrowing & Lending (SBL)

Securities Borrowing & Lending (SBL) is an enhanced lending model that offers temporary loan of securities between the lender and borrower, which expects the price of a stock to fall to hold a short position for a longer duration, while the lender who loans the stock receives a lending fee from the borrower.

Regarded as an important activity in many markets, SBL provides greater liquidity, tighter spreads, better risk management and possibly reduces the cost of capital.

If you wish to be a lender, you may lend the requisite number of stocks directly to CLA or through an approved Lending Agent. Securities to be lent will be registered and displayed as a lending interest in the Bursa SBL – Lending Pool. Minimum number of securities to be lent is 50,000 units. A lending fee of 2% will be charged by Bursa.