About Canada’s Securities Lending Market

Securities lending is a long-established practice that has been active in Canada for over 25 years. In securities lending transactions, beneficial owners such as mutual funds, pension funds and other institutional investors lend securities to borrowers often through intermediaries such as custodian banks. The business of securities lending promotes trading activities and injects liquidity and efficiency into the market. At year end 2015, the Canadian industry had CAD $1,147 billion available for lending and CAD $208.325 billion on loan according to Markit.