Guide to the Securities Lending Market Executive Summary

Securities lending - the temporary transfer of securities on a collateralised basis - is a major and growing activity providing significant benefits for issuers, investors and traders alike. These are likely to include improved market liquidity, more efficient settlement, tighter dealer prices and perhaps a reduction in the cost of capital.

The scale of securities lending globally is difficult to estimate, as it is an 'over the counter' rather than an exchange-traded market. However, it is safe to say that the balance of securities on loan globally exceeds £1 trillion.