Fully Paid Securities Lending

Axos Clearing has a highly dedicated and knowledgeable team of professionals in the securities lending markets. With more than 50 plus years of combined experience, our team has strong industry relationships and we have partnered with leading technology providers to enhance our offerings.

Fully Paid Lending is a strategy investors choose to try to generate additional income on their portfolios by loaning securities through an intermediary. The investor (lender) temporarily loans securities to a financial institution (borrower), such as a broker-dealer, hedge fund or bank. Each day that your stock is on loan, revenue can be earned through interest earned on the collateral value for the loan based on market rates.

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Getting started

Your introducing firm utilizes the Fully Paid Lending Program through its clearing firm, Axos Clearing LLC. Axos Clearing serves as the intermediary for this process.

To enroll:

You will be required to read Axos Clearing’s Important Disclosures Regarding Risks and Characteristics of Participating in Axos Clearing’s Fully Paid Securities Lending Program within the Master Securities Lending Agreement(MSLA).
Sign the Master Securities Lending Agreement (MSLA), copies of which will be provided to you by your introducing firm for your review prior to possible enrollment.

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How fully paid lending works

MSLA between investor, borrower and advisor is signed.
Shares are identified by the Axos Clearing Securities Lending desk.
If the Axos Clearing Securities Lending desk elects to borrow the investor’s shares, Axos Clearing will send to a custodian an appropriate amount of loan collateral for the duration of the loan.
A percentage of the loan fee generated from the borrowed securities is deposited into the investor’s brokerage account . The lending fee accrues daily and is automatically credited monthly to your account.

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Program Eligibility

Only fully paid securities or securities in excess of any margin debit are eligible.
Client maintains full economic ownership of the securities on loan and may sell the securities at any time.
Certain threshold requirements for eligibility may apply. Our team can provide additional information as requested.

Loan Termination

Client sells loaned shares, either the full position or part of the position.
The borrower returns the shares.
Client exits Fully Paid Lending Program.

Risks

Securities on loan are not protected by SIPC. The collateral delivered may constitute the only source of satisfaction of Axos Clearing’s obligation in the event the securities are not returned.
Loss of voting rights.
Tax consequences from receiving cash in lieu of dividends (if security pays dividends).
Securities loaned out are typically used to facilitate short sales.
No guarantee shares will be lent out or that your client will receive the best loan rates for your shares.
Interest rates can move daily and are subject to market conditions.

Ready to Get Started?

Utilize our Fully Paid Securities Lending program now. Call Axos Clearing at 732-632-2060 or visit https://www.axosclearing.com/

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