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Securities Lending

Unlock extra returns while staying in full control

Earn additional income by temporarily lending out the securities in your portfolio.

The service is secure and transparent, and does not affect your day-to-day trading. You retain full control at all times.

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The benefits of our Securities Lending Service

No custody fees

Access the full potential of the Securities Lending service at no additional cost. There are no custody fees or hidden charges - it's seamlessly included with your Cornèrtrader account.

Full control

You always remain in charge of your portfolio. The service can be disabled upon request, and your securities remain fully tradeable even when on loan - no restrictions, no lock-ins.

50/50 revenue sharing

We believe in transparency and fairness. That's why 50% of the net revenue generated from lending your securities is credited directly to your account every month - no complexity, no fine print.

Strong collateral protection

All securities lending transactions are secured by collateral exceeding the value of the securities lent. The collateral is held in Switzerland and managed in accordance with Swiss regulatory requirements, ensuring a high standard of risk management and protection.

 

What is Securities Lending?

Securities Lending is a service that enables Cornèrtrader to lend temporarily certain securities from your portfolio to carefully selected institutional counterparties. In exchange, you receive a monthly payment based on the additional revenue generated by these loans. 50% of the net proceeds are credited directly to your account. The amount you earn may vary depending on market demand and the specific securities available in your portfolio - some assets are in higher demand than others, and interest rates may fluctuate over time.

Throughout the lending period, you remain the beneficial owner of your securities. You can sell or trade them at any time, just as you would under normal conditions. You also continue to receive dividend payments (or equivalent cash compensation) even while your securities are on loan. To safeguard your interests, every loan is over-collateralised - the value of the collateral exceeds that of the securities lent. This collateral is held in Switzerland and managed in full compliance with Swiss regulatory standards.

Please note that, as with any investment position, you retain the market risk associated with price fluctuations of the securities while they are on loan.

Frequently Asked Questions (FAQ) about Securities Lending

How can I activate the Securities Lending service?

To activate the Securities Lending service, Swiss-resident clients can either sign the Securities Lending Agreement when opening a Cornèrtrader account or request the agreement later by contacting:

How can I deactivate the Securities Lending service?

You can deactivate it at any time by contacting:

Can I exclude specific securities (e.g., ETFs or shares) from Securities Lending?

No, it is currently not possible to exclude individual securities. The only option is deactivating the entire service.

What criteria and guarantees does Cornèrtrader apply when lending securities to third parties?

Cornèrtrader lends securities only to qualified institutional counterparties, based on prudential criteria and by obtaining collateral that exceeds the value of the securities lent.

Historical data on coverage ratios is not publicly disclosed, but counterparty risk is managed according to international standards.

How is the remuneration calculated? How much do I receive?

When your account is enabled for Securities Lending, Cornèrtrader may lend out your securities to market participants who pay interest for borrowing them. The income generated depends on market demand for each specific security and the corresponding borrow fee, which can vary over time.

For example, suppose you hold shares of a company that are currently in demand, with a borrow fee of 6% per year. If your shares are loaned out, this would generate an annual gross income of 6% based on their market value.
Cornèrtrader shares this income with you, on a 50/50 basis. In this case, you would receive 3% per year, credited monthly to your account as long as the shares remain on loan.

Please note that lending activity and income are not guaranteed, as they depend on market conditions and demand for the securities you hold.

When will I receive the payout of Securities Lending commissions?

Commissions earned through the Securities Lending service are paid out on a monthly basis. Amounts are credited by the 15th day of the month following the month in which the commissions were generated.

Can I continue to trade my securities if they are on loan?

Yes, even if the securities are lent out, they remain fully available for sale or other trading operations.
There are no restrictions or lock-up periods.

Will I still receive dividends if my securities are lent out?

Yes, you will receive a compensatory payment equivalent to the dividends, even if the securities are on loan at the time of the dividend payout.

Can I register my Swiss shares to participate in shareholders' meetings if I have an active Securities Lending Agreement?

Yes. Having an active Securities Lending Agreement does not prevent you from registering your Swiss shares to participate in shareholders' meetings.

However, any registered Swiss shares cannot be included in the Securities Lending service and therefore will not generate commissions from it.

What is the impact of activating the Securities Lending service on the use of securities as collateral?

Once the Securities Lending service has been activated, the securities in your portfolio (stocks and ETFs) can no longer be used as collateral to cover the margin required for derivative positions. In this case, the margin can be covered exclusively by the available cash balance on your account. If you wish to use your securities as collateral for derivative positions, you will need to request the deactivation of the Securities Lending service.