Equities

Referring to IDClear Rule Number II-10 regarding Scripless Securities Borrowing-Lending Services, Securities Borrowing and Lending (SBL) is the borrowing and lending activity of securities between the securities owner as Lender to IDClear as the Borrower or between IDClear as the lender with parties which require securities as the Borrower by submitting collateral as guarantee, in order to support the exchange transaction settlement activity.

SBL transaction is temporary, meaning lenders transfer or lend their rights to use the securities to the borrower in a given period. The lender or the borrower can withdraw or reimburse these securities anytime.

In the SBL transaction, the borrower must provide collateral and is obligated to pay the loan fee and transfer all the rights for the securities lent as the lender. Some of these rights are manufactured dividends, bonus shares, and any other corporate actions.

Some of the benefits obtained by the lender and borrower of SBL transactions include:

Parties	Benefit
Lender	Additional income gained as Lender
Borrower	1. Avoid the default risk in delivering stocks for exchange transaction settlement 2. Support short selling transaction strategy, margin trading performed by Clearing Member or its clients