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Securities Borrowing & Lending

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Securities Borrowing & Lending - Central Lending Agency (CLA)

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 paid by Bursa.

Fees Schedule

Securities Borrowing & Lending – Negotiated Transaction
AmInvestment Bank Berhad’s (“AmIB” or the “Bank”) Securities Lending Programme is aimed at providing investors with a low-risk way to optimise returns on your idle securities. By lending out your securities through AmIB, you now have the opportunity to earn Lending Rebates from your loaned securities. Securities Borrowing & Lending Negotiated Transaction (SBLNT) offer participants an option to lend and borrow on an over-the-counter (OTC) basis. AmIB’s Securities Lending Programme utilises the SBLNT model to provide more flexibility and access to our lenders. Only SBL Eligible Securities are allowed for any SBLNT transactions (please refer to the link for the latest SBL Eligible Securities list : SBL Eligible Securities (bursamalaysia.com)).

Why be a Lender?

  • Passive Income

    for Lender

  • Retained Economic Benefits

    of the loaned securities (i.e., dividends, bonus issues, except for voting rights)

  • Monetise idle securities

    by lending out and earning Daily Lending Rebate

  • Varying yields

    from lending activity will depend on the demand of the loaned securities

  • No Lock-In Period

    as the lender may recall the securities at any time, subject to prior notification

  • Secured Legal Engagement

    between Lender and AMIB

Talk To Us

If you are a new broking customer to AmIB and wish to join AmIB’s Securities Lending Programme, please complete the forms listed below and email the copies to [email protected]

  1. Trading Application Form
  2. Securities Lending Agreement

For existing broking customers of AmIB, kindly contact your respective Remisier/Dealer to kickstart your application.

For more information on our programme, you may refer to our Product Disclosure Sheet or contact us at
[email protected].