SECURITIES LENDING PROGRAM Sample Clauses
The Securities Lending Program clause establishes the terms under which a party may lend its securities to another party, typically in exchange for collateral and a fee. This clause outlines the eligibility of securities for lending, the process for transferring securities and collateral, and the rights and obligations of both the lender and borrower during the lending period. By clearly defining these procedures, the clause facilitates the temporary transfer of securities, enabling increased liquidity and potential income for the lender while ensuring the return of the securities and protection against default.
SECURITIES LENDING PROGRAM. All M1 Finance LLC clients have the option to enroll in the Apex Securities Lending program. Clients agree to the Master Securities Lending Agreement for APEX Clearing Corporation when opting into the Apex Securities Lending program but only after opening an M1 Finance LLC account, and that agreement outlines the details of the program including the risks and the benefits of participating. Securities Lending involves lending securities to financial institutions who may want to borrow securities for multiple reasons. These reasons include but are not limited to supporting trading strategies, covering short sales, or satisfying customer possession and control requirements. Borrowers actively seek securities which are “hard to borrow”, meaning there is a limited supply of the securities available to be loaned.
SECURITIES LENDING PROGRAM. (a) Apex has agreed to allow Correspondent to participate in Apex’s Fully-Paid Securities. Lending Program (“the Fully-Paid Lending Program”). Correspondent agrees and acknowledges participation in the Fully-Paid Lending Program is at all times in Apex’s sole discretion, and nothing in this Agreement shall constitute a commitment or undertaking by Apex to permit Correspondent or any of Correspondent’ s Customers to participate in the Fully- Paid Lending Program. Apex may, in its sole and absolute discretion, accept or refuse any participation in the Fully-Paid Lending Program or any instruction to effect any transaction related to the Program.
(b) Correspondent acknowledges and agrees to Apex that:
(i) Correspondent has read FINRA Rule 4330(b)(2) and FINRA Regulatory Notice 14-05 and. understands the requirement to make an appropriateness determination and suitability analysis prior to allowing a Customer to enter into the Fully-Paid Lending Program;
(ii) As between Correspondent and Apex, it is Correspondent’s obligation to perform and complete the due diligence required by FINRA Rule 4330(b)(2) to ensure that the Fully-Paid Lending Program is appropriate for any Customer requesting to participate or participating in the Program. As between Apex and Correspondent, it is also Correspondent’s obligation to comply with rule 2111 (Suitability) when recommending to a Customer a securities lending program, individual transactions within such program, or an investment strategy that includes a securities lending program;
(iii) In making the determination in subsection (ii) above, Correspondent has considered each Customer’s financial situation and needs, tax status, investment objectives, investment time horizon, liquidity needs. risk tolerance, and any other relevant information and that Apex is relying on Correspondent to make this determination;
(iv) Correspondent will ensure that any Customer pa1ticipating in the Fully-Paid Lending Program has executed a Master Securities Lending Agreement for Apex Clearing Corporation’s Fully-Paid Securities Lending Program and has received and read a copy of the disclosure document entitled Important Disclosures Regarding Risks and Characteristics of Participating in Apex Clearing Corporation’s Fully-Paid Securities Lending Program; and
(v) In providing the document entitled Important Disclosures Regarding Risks and Characteristics of Participating in Apex Clearing Corporation’s Fully-Paid Securities Lending Program to any ...
SECURITIES LENDING PROGRAM. Apex will retain 75% of gross revenues earned from fully-paid securities lending program. Correspondent shall receive the remaining 25% of revenues earned from the fully-paid securities lending program. Any payment to Customer will be at Correspondent’s discretion and will only come from Correspondent’s portion of revenue from the fully-paid securities program.
SECURITIES LENDING PROGRAM. All M1 Finance LLC clients are automatically enrolled in the Securities Lending program. Clients agree to the Master Securities Lending Agreement for APEX Clearing Corporation when opening an M1 Finance LLC account which outlines the details of the program including the risks and the benefits of participating. Securities Lending involves lending securities to financial institutions who may want to borrow securities for multiple reasons. These reasons include but are not limited to supporting trading strategies, covering short sales, or satisfying customer possession and control requirements. Borrowers actively seek securities which are “hard to borrow”, meaning there is a limited supply of the securities available to be loaned.
SECURITIES LENDING PROGRAM. All M1 Finance LLC clients are automatically enrolled in the Securities Lending program. Clients agree to the Master Securities Lending Agreement for APEX Clearing Corporation when opening an M1 Finance LLC account which outlines the details of the program including the risks and the benefits of participating. Securities Lending involves lending securities to financial institutions who may want to borrow securities for Form - July 2023 ACCOUNT AGREEMENT | Page 8 of 20 multiple reasons. These reasons include but are not limited to supporting trading strategies, covering short sales, or satisfying customer possession and control requirements. Borrowers actively seek securities which are “hard to borrow”, meaning there is a limited supply of the securities available to be loaned.