Prime Services and Securities Lending

As mentioned, Securities Lenders are crucial to facilitate short-selling. We will be looking at Securities Lending transactions by using examples of a hedge fund manager that is bearish on a stock. He will need to borrow the stock to shorten it. A securities lender will facilitate the loan. An asset manager with long-only access will lend the stock. You will also be able to see how borrow fees are distributed and the various Security Lender models.

Next, you'll cover Securities Lending. Here you will learn about Securities Lending and distinguish between stock lenders, short-sellers and long-sellers. You will be able to identify why and how market participants might'short' stock. We will use multiple short equity metrics to analyze short-selling activity, including short interest and short ratio from Refinitiv Workspace Screen.

This course will help you understand how Securities Lenders and Prime Services can facilitate stock shorting. Once you start, you'll understand how Prime Services, also known as Prime Brokers, attracts investors, maintains margin requirements and performs clearing and settlement functions. They also provide custodial services and real-time reporting to their hedge fund clients.