Securities Borrowing and Lending (SBL) is a temporary loan of securities between a lender and a borrower. This is done to allow the borrower who expects the price of a stock to fall to hold a short position for a longer duration, while the lender who loans the stock receives a lending fee from the borrower. Securities Borrowing and Lending (SBL) in Singapore is facilitated through the Central Depository (CDP), which provides a lending pool for various securities.

The Securities Borrowing and Lending (SBL) market in Singapore has seen substantial growth in recent years, particularly driven by increasing demand for short-term funding and portfolio optimization. According to reports by the Singapore Exchange (SGX) and the Monetary Authority of Singapore (MAS), the value of securities borrowed and lent through the SGX’s Central Depository (CDP) has consistently risen, reflecting broader market trends and investor confidence. Singapore Exchange Securities Lending Programme allows direct account holders to sign up to lend securities held in their CDP accounts. CDP account holders may register as a lender even if they currently do not own any eligible securities or the requisite quantity or value of eligible securities.

In September, SGX Securities saw a significant 75% year-on-year (y-o-y) increase in total market turnover, reaching S$30.4 billion, while the securities daily average value (SDAV) surged by 67% y-o-y to S$1.45 billion, both marking their highest levels since May 2022. For the
July-to-September quarter, securities market turnover grew by 37% to S$86 billion compared to the same period last year, with SDAV rising by 33% y-o-y to S$1.32 billion. During this period, Singapore’s stock market became the second most actively traded in the region. The average securities net clearing fee for the quarter was 2.54 basis points.

The Securities Borrowing & Lending Summit by Trueventus is a timely summit for professionals looking to expand their market horizon and augment increased investment for higher returns. With the growing complexity of financial markets, attending such a conference allows you to stay ahead of industry developments, understand regulatory changes, and learn about innovative practices from experts and market leaders. By attending, you gain access to the latest data, strategies, and insights to make informed decisions, while also positioning yourself as a key player in this rapidly evolving market.