Securities lenders, often referred to simply as dry lenders, are institutions that have access to ”loanable” securities. These may be asset managers with a large number of securities, custodian banks holding third-party securities, or third-party lenders who automatically access securities through the asset holder`s deposit bank. The international securities lending trade organization is the International Securities Lending Association. According to a survey carried out in June 2004, its members had 5.99 billion euros in securities for the granting of loans. In the United States, the Risk Management Association publishes quarterly surveys of its (U.S.) members. As of June 2005, they had $5.77 billion in securities. Other interprofessional organizations are the Australian Securities Lending Association (ASLA), the Canadian Securities Lending Association (CASLA), the Pan Asia Securities Lending Association (PASLA) and the South African Securities Lending Association (SASLA). Since then, the market has faced a huge cash surplus, which has had a significant impact on the lending and resealing industry as a central liquidity management tool. The terms of the loan are governed by a ”Securities Lending Agreement”[1] which requires the borrower to provide the lender with collateral in the form of appropriate cash or securities, or above the borrowed securities, plus the agreed margin. The subset of non-cash collateral, including equities, government bonds, convertible bonds, corporate bonds and other financial products, is not related to the means of payment. The agreement is a contract that can be implemented under applicable legislation, which is often stipulated in the agreement. As a payment for the loan, the parties negotiate a tax that is shown as an annualized percentage of the value of the borrowed securities. If the agreed form of guarantee is in cash, the tax can be listed as a ”short discount,” meaning the lender earns all interest on cash guarantees and ”inserts” an agreed interest rate on the borrower.

Major securities lenders include investment funds, insurance, retirement plans, exchange-traded funds and other large investment portfolios. [2] For financing, the lending of securities or shares refers to the granting of securities by one party to another. Securities lending has been ongoing for more than 40 years. The first formal participation operations took place in the early 1960s in the City of London, but it began as an industry in the early 1980s. The practice has moved from a back office to a common investment practice that improves the returns of large financial institutions. The term ”loan of securities” is sometimes used correctly in the same context as an ”equity loan” or a single ”guaranteed loan.” The first relates to actual loans made by banks or brokers to other institutions to cover short selling or other temporary purposes. The latter is used in private or institutional-backed lending agreements for a wide range of securities. In recent years, the Financial Industry Regulatory Authority (FINRA) has warned all consumers that they will not avoid non-regressive equity loans, but they had a short popularity before the SEC and IRS were able to close almost all of these suppliers between 2007 and 2012 and immediately classified the non-recreational transfer of equity credits as fully taxable sales (see bottom of the consultation).