The terms "SBL" or "SLB", or "Securities Lending" refer to a temporary loan of securities by a lender or borrower where the:
- Lender may recall securities at any time, allowing shares to be returned within the normal market settlement cycle notwithstanding an agreed maturity date.
- Borrower may return securities at any time.
Ownership over the lent securities passes from lender to borrower. The borrower has certain rights, for example the right to sell or lend to another borrower, attend AGMs. The borrower is entitled to economic benefits for example dividends, but the SLB agreement with the lender will oblige the borrower to make [“manufacture”] equivalent payments back to the lender. A lender of securities no longer owns them and has no entitlement to vote. Lenders reserve the right to recall securities from the borrower and must exercise this option if they wish to vote.
