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Sharegain, a global capital markets fintech specializing in securities lending, and InteliClear, a provider of back-office solutions for broker-dealers, have partnered to enhance fully paid lending.
While specific details about the exact nature and benefits of this particular partnership between Sharegain and InteliClear are not extensively detailed in the most recent public announcements, the overarching goal of such collaborations in the fully paid lending space is to:
* Democratize Securities Lending: Sharegain’s core mission is to make securities lending, traditionally reserved for large institutional players, accessible to a broader range of investors, including individual investors and Registered Investment Advisors (RIAs).
* Generate Passive Income: Fully paid lending allows investors to earn additional income by lending out securities (stocks, bonds, ETFs) they own outright (i.e., not on margin) to borrowers.
* Streamline Operations: Partnerships like this typically aim to integrate Sharegain’s lending technology with back-office systems like those provided by InteliClear. This integration helps automate the process of identifying eligible securities, managing loans, handling collateral, and processing payments, reducing the operational burden on broker-dealers and RIAs.
* Address Tax Complexities: Sharegain has recently launched an “intelligent fully paid lending (iFPL)” solution designed to address tax complexities, particularly around “in-lieu-dividend payments,” which have historically deterred RIAs from fully adopting lending programs. This solution can exclude specific securities from lending during dividend periods or recall them before record dates to ensure tax efficiency.
* Increase Market Liquidity: By enabling more investors to participate in securities lending, such partnerships contribute to increased market liquidity and can provide unique supply for hard-to-borrow securities, benefiting borrowers (e.g., those looking to short-sell or settle trades).
In essence, the partnership between Sharegain and InteliClear would likely combine Sharegain’s expertise in securities lending technology and market access with InteliClear’s back-office infrastructure to provide a more seamless, efficient, and potentially tax-optimized fully paid lending solution for their mutual clients, such as broker-dealers and RIAs.

Video courtesy of CSOB

Video courtesy of CSOB