The Securities Lending Positions module allows participants to manage their outstanding contracts. Position management includes contract cancellation, alterations, transfers and renewals, settlements, contract coverage and uncovering, and corporate actions. Only intermediaries are allowed to access the Securities Lending system.
A request to cancel a trade may be submitted by the borrower or lender only on the trade date, regardless of the date of the settlement of the opening leg, and only in the event of an operational error, provided that the underlying assets remain available in the borrower’s portfolio and have not been moved.
The operational error must be substantiated, approved by the executing participant of both parties and the custodian, and submitted to Base. The cancellation is subject to Clearing’s assessment and approval.
Clearing may, at its sole discretion, cancel the trade.
A request to alter a trade may be submitted at any time during the contract term, from T+1 of the opening date through T-1 of the contract expiration date.
The characteristics that may be altered vary according to the trading model under which the trade was originally executed (Private or Public). Alterations are subject to Clearing validation and approval.
A request to transfer a contract may be submitted with or without a change in the beneficial owner.
The transfer always covers the full outstanding quantity of assets and any proceeds already provisioned, as the contract itself is the subject of the transfer.
The transfer of a position may also entail the transfer of collateral associated with the position, which must be requested jointly.
The transfer is subject to Clearing’s assessment and approval.
Automatic Renewal: all Securities Lending trades at Base Exchange are automatically renewed upon expiration based on predefined contract characteristics. However, for trades executed under the Private Trading Model, it is possible to indicate, either when the order is entered or during the contract term, that the trade should not be renewed upon expiration.
Manual Renewal: if the parties wish to alter the contract terms upon renewal, the following characteristics may be changed:
In all renewal scenarios, the borrower must pay the pro rata fee agreed for the trade and the applicable fees. The assets are not returned upon renewal and are only returned upon termination of the contract.
Settlement upon Expiration: contracts that have not been renewed or settled early are settled upon expiration. Settlement takes place through multilateral net settlement on the contract expiration date.
Early Settlement: depending on the contract characteristics, such as any lock-up period or lender recall rights, a contract may be settled early. Early settlements take place through the multilateral net settlement cycle on T+1 from the request date when requested by the borrower, and on T+2 or T+3, depending on the applicable request window, when requested by the lender.
In all settlement scenarios, the borrower must pay the pro rata fee agreed for the trade and the applicable fees. The assets are returned only upon termination of the contract.
Contract Coverage: contracts may be covered exclusively by the borrower for the purpose of avoiding a margin call. Coverage may be either full or partial. The underlying asset must be available for the process to be completed.
Contract Uncovering: contracts may be uncovered exclusively by the borrower for the purpose of making the assets available. Uncovering may be either full or partial. Risk approval is required for the process to be completed.
Mandatory Corporate Actions: contracts may be affected by mandatory corporate actions involving either cash or assets. For asset-based corporate actions, contracts are updated in accordance with the terms of the event. For cash-based corporate actions, the corresponding payable and receivable amounts are provisioned according to the type of event, applicable factor, and the lender’s tax status.
Voluntary Corporate Actions: contracts may be affected by voluntary corporate actions, such as subscription rights, voluntary conversions, tender offers, and others. The decision to participate is exclusively at the lender’s discretion. If the lender elects to participate, the positions are processed according to the applicable event type and deadlines.
(Coming soon)
(Coming soon)
| Version | Date | Criticality | What changed |
|---|---|---|---|
| 1.0 | 2026-09-24 | Relevant | Initial version |