Trading and investing platform eToro is to launch a stock lending program for users based in the UK and Europe. The retail broker is working with BNY, which will act as the custodian, and stock lending platform EquiLend, which will identify borrowers and facilitate the stock lending process.
“Stock lending has traditionally been the preserve of large financial institutions and it’s been much harder for retail investors to earn passive income in this way. Yet it is an important practice that helps to support liquidity in financial markets. Leveraging BNY’s Global Clearing services, we want to level the playing field by enabling millions of eToro users across the UK and Europe to engage with stock lending in an easy and transparent way,” said Yossi Brandes, VP Execution Services at eToro, in a statement.
The move is an expansion of the growing clearing relationship between eToro and BNY which taps BNY’s Global Clearing platform, offering integrated solutions across US and international clearing, custody, settlement, execution, and financing. Through a jointly-created value proposition, the firms have developed a scalable global operating model enabling eToro’s underlying client base to access over 19 exchanges globally.
“We are pleased to expand our relationship with eToro, supporting a holistic solution set across clearing, settlement, custody, foreign exchange, cash management. This development represents the very best of eToro, Equilend and the heritage and innovation of BNY’s world-class platform, as investors look to access a cutting edge feature in their investing journey,” said Victor O’Laughlen, head of Global Clearing at BNY, in a statement.
“The collaboration between EquiLend Spire and eToro marks a significant advancement in the securities lending market, enabling eToro to enhance its services with a fully paid lending program that benefits from cutting-edge technology. This move not only demonstrates EquiLend Spire’s commitment to innovation but also eToro’s dedication to providing efficient and modern financial solutions to its users,” said Dan Dougherty, managing director and global head of Sales and Account Management at EquiLend, in a statement.