Swissquote Launches Stock Lending Program

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Swissquote, which operates as a broker with a Swiss banking license, expanded its offering with the launch of stock lending. Announced today (Thursday), the program will allow customers to earn as much as over 5 percent on some lent stocks.

Initially, the Swiss broker will only allow certain shares and exchange-traded funds (ETFs) for lending. However, it has plans to add more asset categories to the program in the future. Although the yearly payout rate can go as high as over 5 percent on some shares, it will depend on the demand, as the net client return rate for loaned securities can be up to 1 percent yearly. Customers will receive monthly payouts.

Securities lending allows holders of the physical securities to lend their shares to other market participants in exchange for a fixed return. Such services allow them to earn an interest on the lent stock, as well as the usual dividends.

“Securities lending has long been an attractive option only for investors with large investments,” said Jan De Schepper, Chief Sales and Marketing Officer of Swissquote.

“Following a successful launch in Luxembourg, Swissquote is now opening this opportunity for all its clients (except US clients) regardless of portfolio size. They profit from convenient extra passive income from the securities they already own.”

Keeping the Program Secure

According to Swissquote, it will allow securities lending for all its private clients right from within their bank account and app. Further, there will be no minimum deposit for qualifying for the program.

The broker further highlighted that participation in the program will require “explicit registration with the acceptance of an agreement.” Additionally, customers need to understand the associated risks.

“Securities are only lent to reputable, top-tier banks and financial institutions, who often borrow securities to ensure the smooth running of capital markets. For instance, they may borrow assets to support the timely settlement of trades or as collateral,” the official announcement explained.

The expansion of the services came after Swissquote closed 2023 with “a set of record financial numbers.” Its net revenue for the year came in at about CHF 530 million, while it expects a pre-tax profit of at least CHF 255 million. It also launched digital banking services recently.

Swissquote, which operates as a broker with a Swiss banking license, expanded its offering with the launch of stock lending. Announced today (Thursday), the program will allow customers to earn as much as over 5 percent on some lent stocks.

Initially, the Swiss broker will only allow certain shares and exchange-traded funds (ETFs) for lending. However, it has plans to add more asset categories to the program in the future. Although the yearly payout rate can go as high as over 5 percent on some shares, it will depend on the demand, as the net client return rate for loaned securities can be up to 1 percent yearly. Customers will receive monthly payouts.

Securities lending allows holders of the physical securities to lend their shares to other market participants in exchange for a fixed return. Such services allow them to earn an interest on the lent stock, as well as the usual dividends.

“Securities lending has long been an attractive option only for investors with large investments,” said Jan De Schepper, Chief Sales and Marketing Officer of Swissquote.

“Following a successful launch in Luxembourg, Swissquote is now opening this opportunity for all its clients (except US clients) regardless of portfolio size. They profit from convenient extra passive income from the securities they already own.”

Keeping the Program Secure

According to Swissquote, it will allow securities lending for all its private clients right from within their bank account and app. Further, there will be no minimum deposit for qualifying for the program.

The broker further highlighted that participation in the program will require “explicit registration with the acceptance of an agreement.” Additionally, customers need to understand the associated risks.

“Securities are only lent to reputable, top-tier banks and financial institutions, who often borrow securities to ensure the smooth running of capital markets. For instance, they may borrow assets to support the timely settlement of trades or as collateral,” the official announcement explained.

The expansion of the services came after Swissquote closed 2023 with “a set of record financial numbers.” Its net revenue for the year came in at about CHF 530 million, while it expects a pre-tax profit of at least CHF 255 million. It also launched digital banking services recently.

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