With Securities Lending enabled, we may borrow certain securities from your account and lend them out to third parties. For the securities we borrow, you will receive a monthly payment of any extra revenue generated by the loan, and we will collateralise you in accordance with the applicable regulations under Swiss law. All Securities Lending collateral is held in Switzerland.

Note: You continue to retain the market risk of price fluctuation for your securities on loan, just like you would if you didn’t lend those securities. In addition, you continue to retain the right to sell your securities at any point, irrespective of the loan.

There are several reasons why third parties may borrow securities. Top-tier banks and financial institutions worldwide want to borrow securities as part of their broader investment strategies. For instance, they may want to hedge their existing positions, to short markets in which they don't own any shares, or to borrow assets to meet a demanding delivery deadline.

Not necessarily. There may be high, little or no demand to borrow your securities. Certain assets are in greater demand than others, and this demand will fluctuate over time. Across your portfolio you may find, for instance, that a majority of the assets you hold do not command a lending fee at any point in time. This means that it is possible you may not earn any revenue through Securities Lending.

However, enabling the Securities Lending service remains entirely free and you will still get your custody fee waived no matter how many (if any) of your securities Saxo borrows, and no matter how much revenue you may earn from a potential loan.

If there is market demand for the borrowing of shares owned by Saxo clients, an automated, random procedure is used to determine which clients may fulfill the demand from the market. The allocation of lent shares cannot be predetermined as the selection happens randomly to ensure complete fairness in the process.

As an example, there are 29 Saxo clients with ABC shares in their portfolios, totaling 503,000 shares. Of the 29 clients, 26 made their shares available to lend for a total of 478,000 shares. There is market demand for 75,000 shares. Via an automated, random procedure, clients are identified as eligible to lend the shares.

Scenario 1: It may be that Mrs. Müller, with 100,000 shares of ABC in her portfolio, is appointed and she alone can fulfill the market demand.
Scenario 2: It is also possible that Mr. Rochat, with 2,000 shares, is appointed first, with Ms. Bianchi with 1,000 shares second, Mr. Conrad with 357 shares third and so on. In scenario 2, the demand for 75,000 shares may therefore be fulfilled by several clients with relatively small positions. 

Yes, when you enable Securities Lending, all eligible securities in your account become available for lending. Once enabled, you can exclude certain securities from being lent out by opening a new sub-account excluding Securities Lending and transferring the specific position(s) to this new sub-account. More information can be found here.

Yes, you’ll be able to see which securities (if any) are on loan and what revenue (if any) you received directly in your Portfolio Overview.

Yes, collateral is marked to market daily and adjusted to upswings or downswings of the securities’ value accordingly to ensure a minimum of 102% coverage at all times.

Yes, you can sell your securities at any time. The loan is terminated when you sell the security.

Yes, you receive dividends or payment equivalents to applicable dividends with relevant withholding tax applied on the securities while they are lent out.

While your securities are lent out, you do not retain rights to vote or attend shareholder meetings (as applicable).

You can enable or disable Securities Lending in your Profile on the platform. Click here for more information.

For accounts with positions in stocks or ETFs, a custody fee is applied depending on your account tier and securities portfolio value. The custody fee is calculated daily using end-of-day position values and billed monthly, subject to 8.1% VAT. No minimum monthly custody fee is applied. The maximum charge applied amounts to CHF 10 per month.

No custody fees are charged for mutual fund investments or bond holdings.

	Classic	Platinum	VIP
Stocks and ETFs	0.22% p.a. (max CHF 10 per month)	0.15% p.a. (max CHF 10 per month)	0.12% p.a. (max CHF 10 per month)

The custody fee waiver applies to accounts enabling Securities Lending. When you choose to disable Securities Lending, applicable custody fees will be charged on your account on a monthly basis as they would have been before you enabled the service.

For more information, please refer to the Securities Lending Agreement or visit our Support Centre.