Securities lending involves a transfer of securities (such as shares) to a third party (the borrower), who will give the lender collateral in the form of cash. The borrower pays the lender a fee for an agreed upon period for the loan and is contractually obliged to return the securities on demand within the standard market settlement period. The borrower will also pass over to the lender any dividends and corporate actions that may arise.
The relationship between the borrower and lender is initiated by the authorized broker and managed by Kuwait Clearing Company (KCC). For more information please refer to KCC’s SLB Rules.
Short interest is the number of shares that have been sold short but have not yet been covered or closed out.