Previously, investors had to have at least 50,000 shares of an eligible security before they could register as a Lending Participant.
This move brings greater convenience for investors as it means their shareholdings will be automatically added to the lending pool once they have the minimum quantity. The Central Depository (CDP) will lend their securities on their behalf when there is demand.
There is no cost to register as a Lending Participant. Investors who wish to participate will need to complete an application form to indicate the securities they wish to lend and the respective quantities. Registration forms are available on SGX's website and at CDP Customer Service counters.
Mr Peter Chia, Executive Vice President and Head of Securities Clearing and Depository at SGX said, "We have received requests from investors, who do not yet meet our requirements, to register as Lending Participants as they may acquire sufficient shares to meet the eligibility criteria in the future. This pre-registration meets their requests. Today, we have more than 1,200 Lending Participants who have registered to lend 188 of the 200 eligible securities. The pool of securities available for loan to the market stands at about 500 million shares worth $650 million."
CDP will review the list of eligible securities, and the requisite quantity, as the pool of lenders and borrowers increases. Likewise, enhancements to the programme will be made as the securities lending business develops.
