Securities Lending & Financing
Lending Services
Velocity Clearing specializes in securities lending services working with diverse counterparties to generate meaningful revenue for our clients. Featuring seasoned market expertise, an exceptional breadth of securities, and white glove client services, we work with multiple partners to “locate” a supply of securities to enable short sales and, for positions being held overnight, provision a loan of the actual shares themselves. We also offer fully paid lending, an excellent revenue opportunity for clients. Our fully automated locate system is accessible through a Web interface or API connection.
EASY-TO-BORROW-SECURITIES
For seamless transactions throughout the day, Velocity provides an easy-to-borrow securities list to our clients before the market opening.
Locate required securities
We can help you locate stocks that require locates due to their limited supply, unlisted status, or low liquidity. Velocity specializes in locating the most in-demand securities for our clients.
API CONNECTIVITY FOR LOCATES
Velocity has streamlined the securities locate process by combining multiple trading system search functions into our platform allowing customers to complete transactions quickly. Through API connectivity, users on various trading platforms, grey boxes or black boxes can easily place short trades while comfortably remaining in compliance with industry regulations.
SECURITIES LENDING AND BORROWS
Velocity’s Securities Lending System, managed by a professional team, allows us to control costs and rates of securities lending and borrowing. We offer clients term loans on certain securities, providing protection from rate and term changes and removing recall risk. We can also re-rate loans for the benefit of our customers.
FULLY PAID FOR LENDING
Fully paid for lending for clearing and prime customers offers portfolio rebate opportunities. Velocity can lend securities, receive rebates, and share with the client. Loans are secured by cash collateral and held at a separate bank in the customer’s name. Velocity can offer fully paid lending to our omnibus customers and to fully disclosed customers on a case-by-case basis.
MARGIN LENDING
Utilize margin lending through Regulation T or portfolio margin to trade on leverage or to access funding for a margin loan.
*Margin borrowing entails significant risk and is only for experienced investors. You may lose more than your initial investment.
Financing
Although well-known for securities lending, Velocity Clearing provides a spectrum of specialized institutional financing solutions, directly and through our partners at Goldman Sachs and Pershing.
REG T ACCOUNTS (RULES-BASED)
US stocks, index options, and stock options. Clients may borrow up to 50% of the purchase price of securities that can be bought utilizing a Reg T loan with the remaining 50% funded with cash.
PORTFOLIO MARGIN ACCOUNTS (RISK-BASED)
US stocks, index options, and stock options. Margin and credit departments evaluate the client’s suitability for portfolio margining. Based on VaR and client deposits, we determine the applicable margin requirements and leverage granted to the client.
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Our proprietary stock locate system, high-tech clearing, execution platforms, and competitive securities lending services create the ideal environments for our clients.