The online broker Bourse Direct, which claims 300,000 open accounts, is launching a new service. Its clients can now subscribe to the “securities lending” option and temporarily entrust them to institutional investors, who may need them for various arbitrage or hedging operations, in exchange for remuneration. Once the service is activated, Bourse Direct will be able to offer the securities held – ETFs or shares -, depending on market demand, through a secure structure. The broker manages the loan and ensures that “clients retain full control of their portfolio, can sell the loaned securities without any restrictions, and continue to receive any dividends”.
Interest paid monthly
The interest on this loan, once the costs borne by the platform – of the order of 60% of the total – have been deducted, will be shared between the client and Bourse Direct. Calculated daily, they will be paid once a month. It is difficult to anticipate the remuneration to be claimed, the broker specifying that it depends on the securities lent, their quantity, demand and the duration of the loan. The service is currently reserved for adult individuals and legal entities holding an ordinary securities account, excluding joint ownership. Note that such an operation presents a risk, in the event that the borrowers are not able to return the securities lent. To limit it, Bourse Direct indicates that it takes guarantees from them.