Swissquote partners with Sharegain to offer securities lending to clients
January 25, 2024 - Swissquote is now offering its clients an innovative way to earn extra income from their investment assets through securities lending. Customers can lend out their individual stocks and ETFs (exchange-traded funds) to reputable financial institutions, gaining monthly income while still receiving dividends and retaining full selling rights at any time.
No minimum deposit is necessary to participate in this program, which is accessible directly through Swissquote's bank account and app interfaces. Initially, the program will include shares and certain ETFs, with plans to broaden the range of eligible assets in the future. The annual net return rate for clients could reach up to 1%, with some securities potentially exceeding 5%.
Jan De Schepper, Swissquote's Chief Sales and Marketing Officer, remarked, "Securities lending has long been an attractive option only for investors with large investments. Following a successful launch in Luxembourg, Swissquote is now opening this opportunity for all its clients (except US clients) regardless of portfolio size. They profit from convenient extra passive income from the securities they already own.”
Clients interested in this opportunity must register explicitly and accept an agreement that outlines the risks involved. They can opt-in for their entire portfolio or exclude specific securities via customer service. Swissquote ensures seamless client interactions throughout the lending process.
The borrowed securities are lent exclusively to top-tier banks and financial institutions, which may require assets for various operational needs. During the lending period, customers continue to benefit from any appreciation in asset value and receive all asset-generated income, including dividend cash payments, although they may forfeit voting rights and receive cash in lieu of dividends.
The demand-driven nature of securities lending necessitates a match with interested borrowers, and while on loan, Swissquote safeguards the assets with a collateral of 105% of their value. The lending arrangement may be terminated based on mutual agreement or when the client opts to sell the loaned securities.
For this service, Swissquote has partnered with Sharegain, a securities lending specialist with extensive expertise and direct connections to borrowing institutions. Boaz Yaari, Sharegain's Founder and CEO, expressed enthusiasm for the partnership, “We are delighted to partner with the fantastic team at Swissquote and deliver greater value to them and their clients. For too long, securities lending has benefited only the largest financial institutions.”
Swissquote's latest offering is a part of its broader suite of online banking services, enabling clients to trade over three million financial products. The bank operates internationally, with a presence in key financial locations, and is regulated by both FINMA in Switzerland and CSSF in Luxembourg. For more details on Swissquote's securities lending service, interested parties can find further information on their website.
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