Platform · Post-trade

Securities lending: put idle inventory to work and power short selling

Principal and agency models, real-time availability, daily rate-setting, collateral and automated interest, all inside the same OMS your desk already trades on.

Book a demo Securities finance overview

In short

ZagTrader's securities borrowing and lending (SBL) engine lets brokers lend as principal from a central pool or as agent peer to peer, with lendable stock reserved at order entry so nothing is lent twice. A daily rate per ISIN carries your spread, collateral and interest post daily to the general ledger, short sales get a controlled borrow, and entitlements on loaned stock pass back to lenders.

Models: Principal and agency
Rate: One daily rate per ISIN, plus your spread
Short selling: Borrow created on end-of-day net short

Runs in:Saudi Arabia (Tadawul, Edaa)UAEKuwaitQatarOmanBahrainJordansee all markets

What SBL desks ask first

How stock is lent, priced, collateralised and returned.

Principal or agent

Re-lend from a central pool as principal, or match approved lenders and borrowers peer to peer as agent.

See securities finance

No double lending

Lendable quantity is reserved the moment an order is placed and reconciled against external inventory systems.

See risk and compliance

Revenue on every loan

One lending rate per ISIN, fixed at the end of the prior day, with a configurable spread for your desk.

See fees and commissions

Collateral and coverage, live

Cash and securities collateral marked to market daily with haircuts, live coverage ratios and call thresholds.

See margin financing

Interest posted daily

Borrower interest, lender receivable and broker spread post to the ledger, with effective-dated corrections.

See finance and accounting

Entitlements back to lenders

Manufactured dividends, bonus shares and rights on loaned stock go back to the original holder.

See corporate actions

Who it's for

Brokers running an SBL desk
Lending agents & inventory managers
Banks with lendable client assets
Hedge funds & short sellers

What it solves

Idle inventory earning nothing
Manual loan booking and rate-keeping
Double-lending and inventory mismatches
Short sales with no controlled borrow path

Key capabilities

An institutional securities-lending engine

Principal & Agency Models

Borrow client holdings into a central inventory pool and re-lend as principal, or match approved lenders and borrowers peer-to-peer as agent.

Real-Time Inventory

Available lendable quantity is reserved instantly at order placement (no double-lending) and reconciled against external inventory systems.

Lending Rate Engine

A single daily lending rate per ISIN, fixed at end of prior day, with a configurable spread that captures your revenue on every loan.

Collateral & Coverage

Cash and securities collateral with daily mark-to-market and haircuts; live coverage ratios and extra-collateral calculations with call thresholds.

Automated Interest Accrual

Daily accrual posts borrower interest, lender receivable, and broker spread to the general ledger, with effective-dated, auditable corrections.

Short-Sale Coverage

Short orders trigger eligibility, availability, and leverage checks, then create the borrow on end-of-day net short. The borrow is closed automatically on buy-to-cover.

How it works

Principal & Agency

Principal: borrow from clients into a pool and re-lend, managing counterparty exposure centrally
Agency: facilitate bilateral lender/borrower matches with per-transaction collateral
Portfolio-level or instrument-level lending eligibility
Qualified-investor onboarding with master-agreement signing

Loan Lifecycle

Open-ended, fixed-term, and auto-renewal contracts
Real-time reservation at order entry; borrow confirmed on EOD net short
Daily interest accrual with lender rate plus broker spread
Recall handling and automatic close on buy-to-cover or expiry

Collateral & Risk

Cash and securities collateral with daily mark-to-market and haircuts
Live coverage ratio with warning and breach thresholds
Extra-collateral calculation and margin-call workflow
Maximum-leverage enforcement on borrowers

Entitlements on Loaned Stock

Manufactured dividends credited back to lenders per contract terms
Bonus shares and rights reconciled to the original holder
Mergers, splits, and spin-offs realigned to underlying holdings
Full audit trail across lender, borrower, ISIN, and entitlement

Frequently asked questions

What is the difference between the principal and agency models?

As principal, you borrow client holdings into a central inventory pool and re-lend them, managing counterparty exposure centrally. As agent, you match approved lenders and borrowers bilaterally, with collateral per transaction. Lending eligibility can be set at portfolio or instrument level, and qualified investors are onboarded with master-agreement signing.

How does short-sale coverage work?

A short order triggers eligibility, availability and leverage checks, and lendable stock is reserved in real time at order entry. The borrow is confirmed on the end-of-day net short position and closes automatically on buy-to-cover or at expiry.

How are lending rates and interest set?

Each ISIN has a single daily lending rate, fixed at the end of the prior day, plus your configurable spread. Interest accrues daily and posts borrower interest, lender receivable and broker spread to the general ledger, with effective-dated, auditable corrections. Contracts can be open-ended, fixed-term or auto-renewing, with recall handling.

What happens to dividends and corporate actions on loaned stock?

Manufactured dividends are credited back to lenders under the contract terms, bonus shares and rights are reconciled to the original holder, and mergers, splits and spin-offs are realigned to the underlying holdings, with a full audit trail across lender, borrower, ISIN and entitlement.