SGX enhances securities borrowing and lending programme, introduces variable rates

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SINGAPORE (Nov 27): Singapore Exchange (SGX) is set to replace the fixed rates for its Securities Borrowing and Lending (SBL) programme with variable and more competitive rates with effect from Dec 2. 

Under the current SBL programme, the lending fee rate and borrowing fee rate are fixed at 4% and 6% per annum respectively. Come Dec 2, the borrowing rates for index stocks, REITs and business trusts will be at 0.5% and the rest of securities at 4%. Lenders’ fees will be calculated based on 70% of the borrowing fee. 

The market regulator says these rates will be reviewed periodically, taking into account factors such as market rates and the demand and supply of...(click on link for full story on