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Fully Paid Lending Program

LOAN YOUR SECURITIES TO GENERATE REVENUE

 

What is the Fully Paid Lending Program?

The Fully Paid Lending Program is a voluntary program that provides eligible customers the opportunity to lend Muriel Siebert & Co., LLC (“Siebert”) certain fully paid securities (“Loaned Securities”). All Loaned Securities are secured by collateral held on your behalf pursuant to the Master Securities Lending Agreement and you have a secured contractual right to the return of these Loaned Securities. The Loaned/Collateralized Securities are not held or custodied by Siebert and are included on your brokerage statement solely as a courtesy to you (the customer). Learn more about the Program

 

 

 

Login to your siebert account.
There's no cost to participate and applying is a simple, one-time process.

 

How does Fully Paid Lending work?

A fully paid lending program works in a number of steps:

Apply

Apply online to enroll eligible accounts in the Siebert Fully Paid Lending Program.

Earn

Your interest is paid on a monthly basis. The rate received or any changes will be provided by written confirmation or in the account activity/history sections of your statement and online.

Review and agree

Review all agreements, disclaimers and documents and sign the master securities lending agreement prior to submission.

Lend

We’re always watching to add value to your portfolio and have the tools identifying opportunities to optimize securities lending.


(800) 872-0444

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Potential Benefits of the Program

For shareholders, stock lending offers a relatively low-risk way to earn extra returns on the stocks you already own

*You must have at least $25,000 in assets with Siebert. Other eligibility requirements may apply; please contact Siebert Customer Service for more information at 800.872.0444

(800) 872-0444

Sell at any Time

You retain full ownership rights and may sell your shares or leave the program at any time. Keep any gains (or losses) while the stock is on loan.

Earn Daily Income

While on loan, your securities will earn daily interest based on an annualized rate with interest paid out monthly to your account.

Complete visibility

You can see which positions are on loan, the rate, and how much interest has been paid online, 24/7.

Simple and automatic

Once you’re enrolled, Siebert will borrow eligible securities from your account based on demand (and provide you notice when securities are borrowed), in exchange for cash collateral and interest payments.

See how securities lending may pay off

You receive an interest rate-based lending fee that is calculated by multiplying the loan rate by market value of the securities on loan. The lending fee accrues daily and is credited monthly to your account.

The lending interest rates paid to you by Siebert are based on the relative value of each security in the lending market. This is based on several factors, including borrowing demand, the overall lendable supply of the security, short-selling and hedging interest, and general market conditions.

†Receipt of miscellaneous cash payments can have different taxable consequences than receipt of the actual dividends. You should consult with an attorney or tax professional regarding any specific legal or tax situation.

Fully Paid Lending Program FAQs

Important Considerations

No Assurance that your shares will be lent

The securities selected, duration of the loan, and daily rate vary depending on supply and demand.

Effect on Investments

Securities we borrow from you may be used to facilitate short selling which could contribute to lowering the price of the securities on loan.

Dividends paid in lieu

If a non-cash dividend is paid on a position which is on loan, you will receive a cash payment in lieu at least equal to the amount. Payments-in-lieu may carry a higher tax consequences in non-retirement accounts.

 

Important disclosures regarding the Securities Lending Program include the following:

 

• The Securities Investor Protection Act of 1970 does not protect your Loaned/Collateralized Securities. The collateral deposited with BMO may constitute the only source of satisfaction of Siebert's obligation in the event the borrower of your loaned securities fails to return the securities.

• The Fully Paid Lending Program is only a means to realize increased income on certain securities and does not provide any downside protection against your lending positions or portfolio.

• You have the right to end participation in the Fully Paid Lending Program at any time in accordance with section 20.3 of the Master Securities Lending Agreement

• You relinquish the ability to exercise voting rights on borrowed securities. If you would like to participate in a proxy vote for shares on loan, you must recall the shares in advance of the proxy record date. Returns for proxy votes are on a best-efforts basis.

• Loaned securities may be, or may become, "hard to borrow" because of short-selling, scarcity of available lending supply, or corporate events that may affect liquidity in a security.

• Cash distributions paid on securities borrowed by Siebert will be credited to your brokerage account in the form of a miscellaneous cash payment. Such payments may have different taxable consequences than receipt of the actual dividends from the issuer.

• The amount of compensation or loan fee to be paid to you will be disclosed on a Fully Paid Lending Notice similar to a Trade Confirmation provided to you when Siebert borrows your Loaned Securities, and you will receive notice of any change in such rate of compensation.

• The Lending Rate is based on the relative value of the Loaned Security, which is determined by several factors, including borrowing demand, the overall lendable supply of the security, short selling and hedging interest and general market conditions.

• Siebert is not obligated to borrow securities at any time and your enrollment in the program does not guarantee that your securities will be borrowed.

• Siebert does not provide legal or tax advice. Always consult an attorney or tax professional regarding any specific tax or legal questions.

 

Not a Siebert Client?

 

*You must have at least $25,000 in each Siebert brokerage account you wish to enroll.

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