Securities Finance glossary

Market practice or a specific agreement between counterparts that allows a part-delivery against an obligation to deliver securities.

The practice of paying a fee to the lender to hold securities for a particular borrower until the borrower is able to take delivery.

A payment date, also known as the pay date or payable date, is the date on which a declared stock dividend is scheduled to be paid to eligible investors. This date can be up to a month after the ex-dividend date. However, the stock price may fall on the payment date to reflect the dividend payment.

Peer-to-peer securities lending is the practice of lending cash or securities to borrowers without bank intermediation.

A service offered to clients (typically hedge funds) by investment banks to support their trading, investment, and hedging activities. The service consists of clearing, custody, securities lending, and financing arrangements.

A party to a loan transaction that acts on its own behalf or substitutes its own risk for that of its client when trading.

Trading activity conducted by an investment bank for its own account rather than for its clients.