Securities lending

We have provided a comprehensive stock lending service to institutional clients for over 40 years and we are one of the leading providers in this field.

We offer tailor-made solutions to suit your global needs, either on a discretionary or non-discretionary basis. Our business is ideally placed within the marketplace to make the best use of our expertise, in order to offer you a service that generates additional income without the loss of any benefits of ownership*.

Our programmes include:

• Plain agency
• Indemnified agency
• Third-party agency, where we do not provide custody

Services include:
Lending programmes, including:

• A full back office (non-discretionary) service, to provide you with support when you negotiate your own loans
• A full front office (discretionary) service where we offer full representation, including the responsibility for fee generation in accordance with your mandate
• Full exposure-management by the daily mark-to-market of all loan and collateral positions using established market pricing
• Efficient collateral management, through our direct membership of settlement and clearance systems such as CREST, CMO, Euroclear and Clearstream, together with our ability to offer custody of collateral in markets globally
• The adoption of a risk averse strategy towards international lending, in which we maintain an active presence in over 20 markets
• The protection of corporate events and benefits accruing on stock while it is on loan*
• Comprehensive client reporting achieved by use of the market leading Global-1 system

* In line with standard market practice, voting on securities on loan may not be possible. Specific terms and conditions will also apply to corporate actions on loan positions.

For more information on HSBC's Institutional Fund Services, please contact our sales and relationship management team.