Securities lending transactions—an introduction
Produced in partnership with Daniel Franks of Norton Rose Fulbright
Securities lending transactions—an introduction

The following Banking & Finance guidance note Produced in partnership with Daniel Franks of Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Securities lending transactions—an introduction
  • Key uses of securities lending transactions
  • Payment and delivery obligations in securities lending transactions
  • Key legal issues in securities lending transactions
  • The Securities Financing Transaction Regulation (SFTR)

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—financial services, Brexit—impact on finance transactions—Key issues for securitisation transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

This Practice Note gives an introduction to the financial arrangement known as a securities lending or stocklending. It looks at:

  1. key uses for securities lending

  2. payment and delivery obligations, and

  3. key legal issues which arise in a securities lending transaction

For more information on the industry standard Global Master Securities Lending Agreement (GMSLA), see Practice Note:

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