Sharegain announced the launch of Primelocate, a complementary securities borrowing offering designed to help prime brokers expand access to small and micro-cap securities.
Prime brokers increasingly need better coverage of small and micro-cap securities for hedge fund clients. However, sourcing this supply from large institutional lenders has proven to be challenging.
Collaborating with market participants as design partners, the approach Sharegain took with Primelocate simplifies the borrowing process for hard-to-borrow small and micro-cap securities at a fixed price and addresses prime brokers’ needs to increase volumes, reduce fails, and eliminate the archaic and costly “buy to lend” practice.
Stuart Jarvis, head of Strategic Partnerships at Sharegain, said in a statement: “Existing locate and trading practices within the securities lending space did not support the mobilization of small and micro-cap securities available in retail accounts. Primelocate offers a new way to tap into this unique inventory, significantly broadening the range of securities available for locates.”
Boaz Yaari, founder and CEO of Sharegain, said in a statement: “The participation of private investors in capital markets has surged in recent years, impacting all aspects of the industry, including securities lending. New supply from retail investors creates new trading opportunities for borrowers, enhances overall market liquidity, and delivers greater value to asset owners.”