stock lending

There’s probably no “electronic market” to publish offerings. I’m a GS trader with good friends in MS and UBS, I will get weekly(!) inventory feeds from them, perhaps an ftp, a spreadsheet etc. Then we agree on the terms [1] over phone. No automatic agreement! After agreement, borrower can request to borrow over web/ftp.. and delivery can be automated.

At its core, SL system keeps inventory, stocks lent out, stocks borrowed.

[1] Unlike repo, market price isn’t relevant. If I borrow 100 IBM, i agree to return it x days later. No buying! Repo involves buying ie (temporary) change of ownership.

Above is for stocks. For futures and FI instruments, there are different systems.

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