Borrowing Financial Instruments – Early N

Borrowing Financial Instruments

Quick Summary

 

Step 1

The borrower applies and requests an offer in the form of a personalized Global Master Security Lending and Borrowing Agreement to lease an instrument.

Step 2

The borrower presents the draft of the Global Master Security Lending and Borrowing Agreement to his bank and negotiates acceptance of the securities borrowing transaction and the payment method.

Step 3

Once the borrower has the agreement of his receiving bank, the client submits his Letter of Intent.

Step 4

The final and fully completed original copy of the Global Master Security Lending and Borrowing Agreement will be issued and sent for signature, together with an invoice for the expenses due to cover the Call Option fees.

Step 5

Once the Global Master Security Lending and Borrowing Agreement has been accepted by the borrower and the call option fee has been paid, the lender will place the Call Option for the purchase the security.

Step 6

Instrument will be booked by the Lender Pro Forma Invoice will be issued for the Lending Fees and provided to the Borrower with this information:
  • – full details of the instrument
  • – Corporate Deed of Assignment
  • – Euroclear and Clearstream Printout
  • – Security Card for the Stock Exchange for Borrower bank to verify
  • – Invoice for Commission

Step 7

Within 20 days conditional payment of
Securities Lending Fee
has to follow

Step 8

Instrument purchased and transmitted to borrower bank with all rights to use it
against the simult
aneous release of
Securities Lending Fee
payment.

Step 9

Instrument has to be returned 15 days prior maturity

Complete an online form

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