Securities Lending Program with CDP

[JuniorLion]

I've read some old threads in HWZ, but just want to ask some questions:

1) What are the risks associated with participating in the securities lending program with CDP?

2) Has anyone here who had succeeded in lending? How long did it take for your shares to be loan out?

 

[soneat]

I participated for more than a year but never had anything loan out.

 

[JuniorLion]

I participated for more than a year but never had anything loan out.

That kind of sucks. What shares did you put out to loan?

 

[beefjerky]

Same never loaned out also. Iirc must be 40000 shares or more, or have a certain value before it gets loaned out

 

[JuniorLion]

Same never loaned out also. Iirc must be 40000 shares or more, or have a certain value before it gets loaned out

Minimum 50000 shares or 50k in value.

 

[soneat]

That kind of sucks. What shares did you put out to loan?

Placed an instruction to let all eligible equities (more than 50000 in units or 50000 in value) to participate. In my case, around 7 to 8 counters (banks and Reits) met the criteria. I did ask the same questions in earlier threads but I recall got zero responses.

 

[JuniorLion]

Placed an instruction to let all eligible equities (more than 50000 in units or 50000 in value) to participate. In my case, around 7 to 8 counters (banks and Reits) met the criteria. I did ask the same questions in earlier threads but I recall got zero responses.

Was wondering as well.

Maybe the demand to borrow equities is very low. Interest rates charged to borrow is 6%.

 

[MuppeJack]

Was wondering as well.

Maybe the demand to borrow equities is very low. Interest rates charged to borrow is 6%.

It's actually not about interest rate I think. I short very often and borrow from brokerage firms/banks instead of CDP.

If you take a look, for common counters like STI constituents and reits, there are so many shares available out there for lending. Chances will be higher if you lend out the not-so-commonly-trade counters I guess.

 

[lzydata]

Digging up this old thread. Has anyone been participating in this? How is your experience?

It seems that the criteria for participating has been lowered from $50k/50k units to $10k/10k units:


5. Is there a minimum quantity or value in eligible securities I must hold before I can start lending out?

Upon registration, you can lend out securities when your holdings meet the following thresholds:

1. for a security priced $1 or below, you must own a minimum of 10,000 units of that security; and
2. for a security priced more than $1, you must own a minimum of $10,000 in value of that security.

https://www.sgx.com/securities/retail-investor/cdp-faqs

 

[soneat]

Digging up this old thread. Has anyone been participating in this? How is your experience?

It seems that the criteria for participating has been lowered from $50k/50k units to $10k/10k units:


5. Is there a minimum quantity or value in eligible securities I must hold before I can start lending out?

Upon registration, you can lend out securities when your holdings meet the following thresholds:

1. for a security priced $1 or below, you must own a minimum of 10,000 units of that security; and
2. for a security priced more than $1, you must own a minimum of $10,000 in value of that security.

https://www.sgx.com/securities/retail-investor/cdp-faqs

Participated but not much activities. Have more than 15 counters eligible.

IMHO, this is negligible.

 

[limster]

In 2020, my STI ETF and Frasers Centrepoint Trust were loaned out. guess people shorting STI and REITs last year