Maybank - Securities Lending

Why lend us your securities?

Receive more from your holding securities!

Introducing our new product - Securities Lending, where you (the owner of a security as well as the lender) can lend us your securities and in return, we will pay you a lending fee for the period the securities are loaned to us.

Earn Additional Income

Instead of idling your securities, let them earn more for you! Receive a lending fee when your securities are loaned to us.

Secure and Convenient

Easy opt-in and fuss-free lending process handled by Maybank Securities.

How it Works

Instead of holding your securities, loan them to us to receive a lending fee.
The lending fee you should receive is accrued on a daily basis and paid the following month.

For example, assuming you have 10,000 units of securities loaned to us:

(Quantity * Loan Price * Lending Rate * Days on loan) / Day Count Basis

Where:
Quantity = 10,000
Loan Price = 5.00 AUD
Lending rate = 0.5%
Days on Loan = 1
Day count basis = 365
Daily lending fee you should receive = (10,000 x 5.00 x 0.5% x 1)/365 = $0.68.

Corporate actions with loaned securities

For example, Assuming you are holding 20,000 shares of ABC Corp., with 10,000 shares on loan:

You will still receive all dividends (and other benefits such as bonus shares or rights issues) for the 20,000 shares you are holding. However, you will lose the proxy voting rights for the 10,000 shares on loan.

Selling loaned securities

You can sell at any time before the applicable cut-off time*
For standard markets, you must provide sale notification to your TR 4 hours before market closes on the trading day.
After the applicable cut-off time;
- Selling 10,000 units of securities or less - no impact
- Selling more than 10,000 units of securities may impact settlement, however, in the event of an urgent sale, we will try our best to recall the shares as early as possible.
- For non-standard markets, this may vary. For example, on the Taiwan Stock Exchange, you must provide sale notification two days prior to the trade date, by 9am Hong Kong time.

* Cut-off time varies by market and subject to change at our discretion. For more information, kindly contact your TR.

Risks of Securities Lending

Investors should consider the following risks which are applicable to Securities Lending:

Counterparty default risk

In the event of a default, a collateral of at least 105% the value of the loaned securities will be used to re-purchase the securities and returned to you (the lender), or the value of the loan will be returned in cash. If the loaned securities have been suspended, delisted or officially declared worthless, you (the lender) will receive zero instead.

Ownership Rights Risk

The lender temporarily loses ownership rights when the securities are loaned out, which means the lender will lose his/her right to vote. If the lender wishes to participate in voting, the loaned security will have to be recalled ahead of the record date.

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FAQs

How do I opt-in to the securities lending facility?

Simply sign a securities lending agreement with Maybank Securities to enable us to loan your eligible securities. This will allow Maybank Securities to loan out your securities with a one-time approval. Loans are allocated on a first come first serve basis. Once you have opted in, loans will be allocated at any time when applicable.

How do I know that my securities have been successfully loaned to you?

You will receive a lending fee which will be credited to your account on a monthly basis. You may also contact your Trading Representative (TR) to check.

What is the lending rate I will receive?

Returns will depend on the value of your holdings and the lending rate. The lending rates change according to the supply and demand dynamics. More widely available stocks may expect to command a lower fee, whilst less available securities with high demand will command higher rates.

How long can I hold a loaned position?

There is no fixed period. Both the borrower and the lender are able to terminate the loan at any time.

How do I sell or recall loaned shares?

You can either call your TR, or initiate a sell trade which will automatically trigger a recall process to start.

Will I still be entitled to dividends and other corporate actions?

Even though ownership of the securities is transferred, you still receive dividends (and other benefits such as bonus shares or rights issues), which are paid to you by the borrower. Do note, however, that when you lend your securities, you lose your right as a shareholder to vote. Securities can still be recalled if you wish to vote.

Securities Lending