- History and development of the securities lending market
- The short selling controversy
- The Lehman Brothers collapse
- How a securities lending transaction works
- The importance of intermediaries
- Reasons and strategies for borrowing securities
- How a deal is done from start to finish
- Basic tax issues for the UK
- Basic tax issues for the US
- Risks with securities lending
- Differences between repos and securities loans
HISTORY AND DEVELOPMENT OF THE SECURITIES LENDING MARKET
First of all, the terms “securities lending” and “stock lending” mean the same thing.
Securities lending developed from the 19th century UK securities trading markets. This involved gilt-edged securities (i.e. government stocks) sourced by specialist intermediaries ...