SGX enhances Securities Borrowing and Lending service

 Createwealth8888: More and more shorting possible  and STI will then fall faster!

------------------------------------------------------------
SINGAPORE: The Singapore Exchange (SGX) is enhancing its Securities Borrowing and Lending service to bring additional benefits for investors and SGX central depository account holders.


With the enhanced service, over 80 per cent of the total listed stocks on the SGX Mainboard and Catalist are now eligible for lending or borrowing via The Central Depository (CDP).

The number of stocks eligible for lending increased from approximately 150 to over 600.

Investors now have expanded opportunity to lend out their stocks and institutional borrowers can have access to a larger pool of different stocks from the CDP.

"With access to a large pool of stocks, institutional investors can consider new trading strategies. This will also improve overall liquidity of the stocks," said Mr Lai Kok Leong, vice president, depository services of SGX.

The CDP, which currently safe keeps securities for retail investors and institutions, will be the counterparty for all lenders and borrowers.

SGX said this will provide a single point of processing for all activities including corporate actions as well as borrowing and lending of securities.

The exchange said stock lending activity could help CDP account holders to lend out their shares to earn lending fees and improve the total earnings on their assets. - CNA/fa