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Stock Lending and Borrowing (SLB)
Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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Talk about being "unti-nyita". Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails. What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange? Why, on God's Green Earth, would I wish to borrow shares on the NSE? Do I get dividend on lent shares? Pray do tell. Copy and Paste Extract:Quote:The Central Depository and Settlement Corporation (CDSC) has gone live with its stock lending and borrowing (SLB) platform after completing a two-year test run at the Capital Markets Authority (CMA) regulatory sandbox.
The CMA has also approved the rules for the SLB platform, which will allow investors such as pension schemes who hold stock assets for the long haul to lend them to fellow investors for a fee, for up to a period of one year.
During the testing period, the CDSC got a no-objection from the Retirement Benefits Authority (RBA) for pension funds to participate in SLB, lining them up to be the key drivers of the platform.
People will be borrowing shares for a particular strategy, either to participate in day trading to get value from certain security or to short the market, where they deem a share overpriced and bet on its price going down.
They can borrow these shares, sell them, wait for prices to fall and then buy them to return to the lender. Source: Business Daily Africa.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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aemathenge wrote:Talk about being "unti-nyita". Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails. What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange? Why, on God's Green Earth, would I wish to borrow shares on the NSE? Do I get dividend on lent shares? Pray do tell. Copy and Paste Extract:Quote:The Central Depository and Settlement Corporation (CDSC) has gone live with its stock lending and borrowing (SLB) platform after completing a two-year test run at the Capital Markets Authority (CMA) regulatory sandbox.
The CMA has also approved the rules for the SLB platform, which will allow investors such as pension schemes who hold stock assets for the long haul to lend them to fellow investors for a fee, for up to a period of one year.
During the testing period, the CDSC got a no-objection from the Retirement Benefits Authority (RBA) for pension funds to participate in SLB, lining them up to be the key drivers of the platform.
People will be borrowing shares for a particular strategy, either to participate in day trading to get value from certain security or to short the market, where they deem a share overpriced and bet on its price going down.
They can borrow these shares, sell them, wait for prices to fall and then buy them to return to the lender. Source: Business Daily Africa. Confused as you are. I assumed they are talking of short selling. Life is short. Live passionately.
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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sparkly wrote:aemathenge wrote:Talk about being "unti-nyita". Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails. What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange? Why, on God's Green Earth, would I wish to borrow shares on the NSE? Do I get dividend on lent shares? Pray do tell. Copy and Paste Extract:Quote:The Central Depository and Settlement Corporation (CDSC) has gone live with its stock lending and borrowing (SLB) platform after completing a two-year test run at the Capital Markets Authority (CMA) regulatory sandbox.
The CMA has also approved the rules for the SLB platform, which will allow investors such as pension schemes who hold stock assets for the long haul to lend them to fellow investors for a fee, for up to a period of one year.
During the testing period, the CDSC got a no-objection from the Retirement Benefits Authority (RBA) for pension funds to participate in SLB, lining them up to be the key drivers of the platform.
People will be borrowing shares for a particular strategy, either to participate in day trading to get value from certain security or to short the market, where they deem a share overpriced and bet on its price going down.
They can borrow these shares, sell them, wait for prices to fall and then buy them to return to the lender. Source: Business Daily Africa. Confused as you are. I assumed they are talking of short selling. Sure, I also understood it as short selling. The only motive to 'borrow' would be if you think the price will fall in the near future. That is, borrow, trade them asap and wait to buy the same stock later at a lower price and give it back to whoever lent it to you. The motivation to the lender is that the borrower pays you a fee (or interest). About whether the borrower earns dividends from the borrowed shares, that's a good question, I have no idea. Seeing is believing
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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The original owner still continues to earn dividends.
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Rank: Member Joined: 3/16/2019 Posts: 313
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jawgey wrote:sparkly wrote:aemathenge wrote:Talk about being "unti-nyita". Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails. What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange? Why, on God's Green Earth, would I wish to borrow shares on the NSE? Do I get dividend on lent shares? Pray do tell. Copy and Paste Extract:Quote:The Central Depository and Settlement Corporation (CDSC) has gone live with its stock lending and borrowing (SLB) platform after completing a two-year test run at the Capital Markets Authority (CMA) regulatory sandbox.
The CMA has also approved the rules for the SLB platform, which will allow investors such as pension schemes who hold stock assets for the long haul to lend them to fellow investors for a fee, for up to a period of one year.
During the testing period, the CDSC got a no-objection from the Retirement Benefits Authority (RBA) for pension funds to participate in SLB, lining them up to be the key drivers of the platform.
People will be borrowing shares for a particular strategy, either to participate in day trading to get value from certain security or to short the market, where they deem a share overpriced and bet on its price going down.
They can borrow these shares, sell them, wait for prices to fall and then buy them to return to the lender. Source: Business Daily Africa. Confused as you are. I assumed they are talking of short selling. Sure, I also understood it as short selling. The only motive to 'borrow' would be if you think the price will fall in the near future. That is, borrow, trade them asap and wait to buy the same stock later at a lower price and give it back to whoever lent it to you. The motivation to the lender is that the borrower pays you a fee (or interest). About whether the borrower earns dividends from the borrowed shares, that's a good question, I have no idea. Q:Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails.
Securities lending and borrowing (SLB) is the temporary transfer of securities (shares) from the lender to the borrower at an agreed lending/borrowing fee, with a simultaneous agreement to return the securities either on demand or at a future date. The borrower will provide the required collateral which should be at least 100% value of borrowed securities plus 10% additional margin to cover price fluctuations. How to lend securities- Place an order specifying the stock, quantity to lend, time period and proposed lending fees. - The SLB agent shall take your order and add it to the lending pool - The securities in your account shall be reserved How to borrow securities- Place an order specifying the stock, quantity, time period and fees you are ready to pay - Provide the required collateral which should be at least 100% value of borrowed securities plus 10% additional margin to cover price fluctuations - The SLB agent will capture the order and create a borrowing request - The 100% collateral and margin shall be automatically reserved in the CDS Q:What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange?
You will earn fees for lending and still continue to receive any dividends due. This will benefit pension funds, investment funds and insurance companies the most. Funds and institutional investors have quantity of shares which they intend to hold for the long haul. This will be a source of some extra cash for them. Q: Why, on God's Green Earth, would I wish to borrow shares on the NSE?In theory for short selling. But how it will happen at the NSE, not clear. Q: Do I get dividend on lent shares?Yes. The only thing is you can't sell the shares since they will be reserved for the agreed duration. You can however recall them earlier and the borrower has 14 days to return them.
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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kmucheke wrote:Q:Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails.
Securities lending and borrowing (SLB) is the temporary transfer of securities (shares) from the lender to the borrower at an agreed lending/borrowing fee, with a simultaneous agreement to return the securities either on demand or at a future date. The borrower will provide the required collateral which should be at least 100% value of borrowed securities plus 10% additional margin to cover price fluctuations.
How to lend securities
- Place an order specifying the stock, quantity to lend, time period and proposed lending fees.
- The SLB agent shall take your order and add it to the lending pool
- The securities in your account shall be reserved
How to borrow securities
- Place an order specifying the stock, quantity, time period and fees you are ready to pay
- Provide the required collateral which should be at least 100% value of borrowed securities plus 10% additional margin to cover price fluctuations
- The SLB agent will capture the order and create a borrowing request
- The 100% collateral and margin shall be automatically reserved in the CDS
Q:What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange?
You will earn fees for lending and still continue to receive any dividends due. This will benefit pension funds, investment funds and insurance companies the most. Funds and institutional investors have quantity of shares which they intend to hold for the long haul. This will be a source of some extra cash for them.
Q: Why, on God's Green Earth, would I wish to borrow shares on the NSE?
In theory for short selling. But how it will happen at the NSE, not clear.
Q: Do I get dividend on lent shares?
Yes. The only thing is you can't sell the shares since they will be reserved for the agreed duration. You can however recall them earlier and the borrower has 14 days to return them. Can I have your pay bill number?
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Rank: Member Joined: 3/16/2019 Posts: 313
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aemathenge wrote:kmucheke wrote:Q:Can someone please explain to me, like child, what this Stock Lending and Borrowing business entails.
Securities lending and borrowing (SLB) is the temporary transfer of securities (shares) from the lender to the borrower at an agreed lending/borrowing fee, with a simultaneous agreement to return the securities either on demand or at a future date. The borrower will provide the required collateral which should be at least 100% value of borrowed securities plus 10% additional margin to cover price fluctuations.
How to lend securities
- Place an order specifying the stock, quantity to lend, time period and proposed lending fees.
- The SLB agent shall take your order and add it to the lending pool
- The securities in your account shall be reserved
How to borrow securities
- Place an order specifying the stock, quantity, time period and fees you are ready to pay
- Provide the required collateral which should be at least 100% value of borrowed securities plus 10% additional margin to cover price fluctuations
- The SLB agent will capture the order and create a borrowing request
- The 100% collateral and margin shall be automatically reserved in the CDS
Q:What is in it for me if I lend my shares to another investor on the Nairobbery Securities Exchange?
You will earn fees for lending and still continue to receive any dividends due. This will benefit pension funds, investment funds and insurance companies the most. Funds and institutional investors have quantity of shares which they intend to hold for the long haul. This will be a source of some extra cash for them.
Q: Why, on God's Green Earth, would I wish to borrow shares on the NSE?
In theory for short selling. But how it will happen at the NSE, not clear.
Q: Do I get dividend on lent shares?
Yes. The only thing is you can't sell the shares since they will be reserved for the agreed duration. You can however recall them earlier and the borrower has 14 days to return them. Can I have your pay bill number?  Pay bill number I don't have. But I have a bitcoin wallet address  3NBpAAXX2gEv3MPHdnthw1WzkmECz8V3St
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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kmucheke wrote: Pay bill number I don't have. But I have a bitcoin wallet address 3NBpAAXX2gEv3MPHdnthw1WzkmECz8V3St What your exchange? Mine is Paxful.
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Rank: Member Joined: 3/16/2019 Posts: 313
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aemathenge wrote:kmucheke wrote: Pay bill number I don't have. But I have a bitcoin wallet address 3NBpAAXX2gEv3MPHdnthw1WzkmECz8V3St What your exchange? Mine is Paxful. Localbitcoins
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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My shares are with Kingdom Securities Limited, which is not on the list of approved SLB agents. Does it mean I have to transfer my shares from Kingdom to any of these approved agents prior to lending my shares? List of approved agents is thus: (1) AIB-AXYS AFRICA
The Promenade, 5th Floor, General Mathenge Drive P.O. Box 11019-00100 Nairobi Tel: 2212206/0711047000 Email: info@aibcapital.com(2) DYER & BLAIR INVESTMENT BANK (B02)
Goodman Tower, 7th Floor, Waiyaki Way P.O. Box 45396-00100 Nairobi Tel: 3240000/227803/4/5 Email: shares@dyerandblair.com(3) EQUITY BANK KENYA LTD
Equity Centre, Ground Floor Hospital Road, Upper Hill P.O. Box 75104 - 00200 Nairobi Tel: 2262000/2736620/2262479 Mobile: 0711026000 / 0732112000 Email: info@equitybank.co.keWebsite: www.equitybankgroup.com(4) FAIDA INVESTMENT BANK LTD (B17)
Crawford Business Park, Statehouse Road P.O. Box 45236-00100 Nairobi Tel: 243811/2/3 Mobile: 0724721014/ 0733243811 Email: info@fib.co.keWebsite: www.fib.co.ke(5) KCB BANK KENYA LTD
Kencom House, Moi Avenue P.O Box 30664 -00100 Nairobi Tel: 3270000 / 0711012000 Email: custody@kcbgroup.comWebsite: www.kcbgroup.com(6) KCB CAPITAL LTD
Kencom House, 2nd Floor Wing B, Moi Avenue P.O. Box 48400 -00100 Tel: 3270000 Email: investmentbanking@kcb.co.keWebsite: www.kcbgroup.com(7) KESTREL CAPITAL (EAST AFRICA) LTD (B21)
Orbit Place, 2nd Floor Westlands Road P.O. Box 40005-00100 Nairobi Tel: 2251758/2210719 Fax: 2243264 Email: info@kestrelcapital.comWebsite: www.kestrelcapital.com(8) NCBA INVESTMENT BANK LTD
NCBA Annex, Hospital Road, Upperhill P.O. Box 44599 -00100 Mobile: 254711056444/ 254732156444 Email: contact@ncbagroup.comWebsite: www.ncbagroup.com(9) STANDARD INVESTMENT BANK LTD (B20)
JKUAT Tower, 16th Floor Kenyatta Avenue P.O. Box 13714-00800 Nairobi Tel: 2220225/2228963/7/9 Email: info@sib.co.keWebsite: www.sib.co.ke(10) STERLING CAPITAL LTD
Delta Corner Annex, 5th Floor Ring Road - Westlands P.O. Box 45080-00100 Nairobi Tel: 2213914/2244077 Mobile: 0723153219/0734219146 Email: info@sterlingib.comWebsite: www.sterlingib.comSource: Central Depository & Settlement Corporation Limited website
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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What is the interest rate? Does anyone know?
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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aemathenge wrote:My shares are with Kingdom Securities Limited, which is not on the list of approved SLB agents. Does it mean I have to transfer my shares from Kingdom to any of these approved agents prior to lending my shares? List of approved agents is thus: (1) AIB-AXYS AFRICA
The Promenade, 5th Floor, General Mathenge Drive P.O. Box 11019-00100 Nairobi Tel: 2212206/0711047000 Email: info@aibcapital.com(2) DYER & BLAIR INVESTMENT BANK (B02)
Goodman Tower, 7th Floor, Waiyaki Way P.O. Box 45396-00100 Nairobi Tel: 3240000/227803/4/5 Email: shares@dyerandblair.com(3) EQUITY BANK KENYA LTD
Equity Centre, Ground Floor Hospital Road, Upper Hill P.O. Box 75104 - 00200 Nairobi Tel: 2262000/2736620/2262479 Mobile: 0711026000 / 0732112000 Email: info@equitybank.co.keWebsite: www.equitybankgroup.com(4) FAIDA INVESTMENT BANK LTD (B17)
Crawford Business Park, Statehouse Road P.O. Box 45236-00100 Nairobi Tel: 243811/2/3 Mobile: 0724721014/ 0733243811 Email: info@fib.co.keWebsite: www.fib.co.ke(5) KCB BANK KENYA LTD
Kencom House, Moi Avenue P.O Box 30664 -00100 Nairobi Tel: 3270000 / 0711012000 Email: custody@kcbgroup.comWebsite: www.kcbgroup.com(6) KCB CAPITAL LTD
Kencom House, 2nd Floor Wing B, Moi Avenue P.O. Box 48400 -00100 Tel: 3270000 Email: investmentbanking@kcb.co.keWebsite: www.kcbgroup.com(7) KESTREL CAPITAL (EAST AFRICA) LTD (B21)
Orbit Place, 2nd Floor Westlands Road P.O. Box 40005-00100 Nairobi Tel: 2251758/2210719 Fax: 2243264 Email: info@kestrelcapital.comWebsite: www.kestrelcapital.com(8) NCBA INVESTMENT BANK LTD
NCBA Annex, Hospital Road, Upperhill P.O. Box 44599 -00100 Mobile: 254711056444/ 254732156444 Email: contact@ncbagroup.comWebsite: www.ncbagroup.com(9) STANDARD INVESTMENT BANK LTD (B20)
JKUAT Tower, 16th Floor Kenyatta Avenue P.O. Box 13714-00800 Nairobi Tel: 2220225/2228963/7/9 Email: info@sib.co.keWebsite: www.sib.co.ke(10) STERLING CAPITAL LTD
Delta Corner Annex, 5th Floor Ring Road - Westlands P.O. Box 45080-00100 Nairobi Tel: 2213914/2244077 Mobile: 0723153219/0734219146 Email: info@sterlingib.comWebsite: www.sterlingib.comSource: Central Depository & Settlement Corporation Limited website SBG Securities is not on the list 😒 Life is short. Live passionately.
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