// definition
Securities lending
Temporary transfer of securities under a return agreement
Short definition
An arrangement in which a lender temporarily transfers shares or bonds to a borrower, who undertakes to return equivalent securities. The borrower generally provides collateral and pays a fee. Lending can support settlement, market making or hedging; collateral and income-related payments depend on the contract.
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Primary sources
- ECB, securities lending, 8 December 2016Temporary transfer, collateral, fees and market uses. The page’s historical settlement timing is outside this definition.