Fully paid securities lending – how do I find the right provider?

StoneX Prime News

In recent years, lending out long securities has emerged as a valuable strategy for managers looking to extract as much value as possible from their portfolios.

But in order to maximize these opportunities, you need a committed partner that can leverage their deep expertise and extensive network of industry and professional connections.

That’s where StoneX Prime’s Fully Paid Securities Lending Program comes in.

The Prime Brokerage Team within StoneX Financial Inc. (SFI) draws on its deep pool of decades-long relationships with banks and custodians to help clients get the most from their lending opportunities.

As a self-clearing prime that specializes in serving boutique and middle-market clients, we are committed to maximizing utilization of your assets.

What are the benefits of a fully paid securities lending program?

  • New revenue stream: With fully paid securities lending, you can potentially increase your fund returns, just by lending out securities you already own.
  • Maintain ownership: You'll still retain full ownership of your investments, which means your earnings will continue to perform based on market conditions, and the borrower will make good on all dividends and interest payments paid out while the security is on loan.
  • Loans are secure: While securities are on loan, the borrower provides clients with collateral for the full value of the securities it borrows.

Why should I choose StoneX Prime Brokerage as my securities lending provider?

  • Passive income opportunity: All you need to do is enroll in a securities lending program and StoneX handles the rest. We manage the entire lending process, from connecting lenders and borrowers, to arranging for custody of collateral, to settling fees after the term of the loan. As a lender, you can enhance your portfolio with a truly passive income strategy.
  • Monitor your activity: When you partner with StoneX, you can track your securities on loan and view your program activity at any time.
  • Fully regulated and transparent: The StoneX Prime Brokerage Team is a division of StoneX Group Inc. (NASDAQ: SNEX), a Fortune 100 financial services company that adheres to the highest standards of corporate governance, financial reporting and disclosure.
  • High-touch support: Our client support team is able to help you manage risk, discover new market opportunities, and engineer bespoke solutions tailored to your unique business requirements.

How do I get started?

To find out if a fully paid securities lending program is right for you, simply contact one of our team members today.

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The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

StoneX Outsourced Trading services are provided by StoneX Outsourced Services LLC, an SEC and CFTC registered broker dealer and member of FINRA, NFA and SIPC. The information contained herein is not intended to provide a sufficient basis on which to make an investment decision and should not be regarded as an offer to sell or a solicitation of an offer to buy any security or financial product. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. References to securities trading and prime services are made on behalf of the BD Division of SFI. References to exchange-traded futures and options are made on behalf of the FCM Division of SFI. You can learn more about the background of StoneX Financial Inc. on BrokerCheck.

StoneX Financial Inc. and StoneX Outsourced Services LLC are wholly-owned subsidiaries of StoneX Group Inc. Securities products offered by StoneX Financial Inc. (“SFI”) & StoneX Outsourced Services LLC are intended only for an audience of institutional clients only. Securities products offered by StoneX Securities Inc. and investment advisory services offered by StoneX Advisors Inc. are intended for an audience of retail clients only.

StoneX Financial Ltd (“SFL”) all rights reserved, is registered in England and Wales, company no. 5616586. SFL is authorised and regulated by the Financial Conduct Authority (registration number FRN:446717) to provide services to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, safeguarding and administration of assets and precious metals trading. SFL is authorised and regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange.

StoneX Financial Pte Ltd (Co. Reg. No 201130598R) (“SFP”) is regulated by the Monetary Authority of Singapore (“MAS”). SFP holds an MAS Capital Markets Services License for Dealing in Securities, Units in Collective Investment Schemes, Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts, and Spot Foreign Exchange Contracts for Leveraged Foreign Exchange Trading, an MAS Major Payment Institution License for Cross Border Money Transfer Services, and is an MAS Exempt Financial Adviser.

Options are not suitable for all investors. There are risks involved in any option strategy. Individuals should not enter into option transactions until they have read and understood the option disclosure document titled "Characteristics and Risks of Standardized Options," which outlines the purposes and risks of option transactions. This booklet is available from your Financial Advisor or on the OCC website. Supporting documentation of claims will be supplied upon request.

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Additional disclosures can be found on https://www.stonex.com/en/compliance-library/.

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