VPS facilitates bilateral securities lending. Our system solution simplifies registration of the loan agreements and the conditions therefore. VPS arranges for establishment and redemption of the loan whereas the lender and borrower agree on the corresponding business terms.

 

The lending scheme is a solution where the lender and borrower are known to each other. The loan is recorded by the account operator on the borrower’s VPS account. Upon completion of the transaction in our system VPS Settlement and as soon as the loan is registered on the borrower’s VPS account, the borrower will get the right of disposal to the securities. The parties are free to agree on maturity and other conditions for the loan.

 

Who is the lender?

All investors holding securities registered on a VPS account may be lenders provided that their VPS account operator also is a clearing agent with SIX x-clear AG.

 

Who is the borrower?

All investors holding a VPS account.

 

Securities eligible for lending

The lending arrangements apply to all shares that are listed on Oslo Børs or Oslo Axess, together with Norwegian government bonds. The securities must be freely transferable and cannot be blocked or pledged.

 

Garantor

SIX x-clear AG acts as the guarantor being responsible for the redelivery of the securities in accordance with the loan agreement.

 

Corporate actions

The securities must be returned to the lender before a corporate event, unless otherwise agreed between the parties.