Stock Lending Program

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Fully Paid Stock Lending Program

Earn interest income by lending stock you already own through CG’s Fully-Paid Securities Lending Program.

Earn Passive Income

Generate income by lending your fully paid securities, while keeping full market exposure. It’s a smart way to let your assets work harder for you.

No Additional Fees

There are no hidden fees—what you earn is yours. Our lending program is simple, transparent, and designed to benefit you directly.

Risk Management

Loans are over-collateralized and updated daily. Our controls help protect your assets, giving you confidence in a secure lending process.

Flexible Participation

Opt in or out anytime with no penalties. Enjoy the flexibility to adapt your strategy without locking yourself in.

How It Works

Step 1

You lend your securities to CG

Step 2

CG lends securities to a borrower

Step 3

Borrower pays interest to CG

Step 4

50% of interest is awarded to you

Example Return

Below is the calculation of potential interest income on the Fully-Paid Securities Lending Program, based on a $500,000 position.

Flowchart showing financial calculations for selling shares, including total proceeds, loan rate, total interest, and final payment amount.
Line graph titled 'Historical Loan Rate' showing monthly loan rate percentages from January to December 2022, with a blue line indicating fluctuations, a horizontal line at 18% labeled 'Average Loan Rate,' and marked data points at specific percentages.

FAQs

  • Fully-paid securities are securities that have been completely paid for and are fully owned by the investor. These securities are held in a segregated account, indicating that there are no outstanding debts or obligations related to their purchase.

  • Financial institutions and brokerage firms borrow securities for short selling, market making, hedging, portfolio rebalancing, or settling failing trades.

  • Yes, when you lend your securities, you continue to own the shares and retain the market exposure inherent in ownership. For example, if the share price increases while your securities are on loan, the value of your position will still increase.

  • You can sell your securities that are on loan at any time, but doing so will automatically terminate the securities loan.

  • You may terminate the loan for any reason, at any time, and without penalty, by contacting your CG representative.

  • While your securities are on loan, the voting rights transfer to the borrower. To exercise voting rights, options, conversion privileges, or other benefits while your position is on loan, your CG representative can help you temporarily pause the loan.

  • Loan rates can vary significantly, ranging from 0.1% to 1000%, depending on the security held and the borrowers seeking loans. Loan rates will adjust throughout the year based on market conditions.

  • The program is governed by a Fully-Paid Securities Lending Agreement, Risk Disclosure Statement, and Letter of Authorization. These agreements will specify terms, duration, interest rates, and collateral requirements.

  • To participate in this program, you must be lending out a minimum of $250,000 value in a stock. You must also not be an insider or have restrictions on the stock.