Securities lending

Frequently Asked Questions

The list of available securities and their respective quantity available for borrowing may differ from time to time. An updated list may be obtained from your Trading Representative (TR) or by logging into POEMS online.

You may borrow the securities online through POEMS or alternatively, you may contact your Trading Representative (TR) or email our SBL Desk at to borrow and confirm the status of your loan request.

For trading convenience, you may execute your trades through your POEMS Account. However, your short-sell and buy-back trades must be communicated to the Trading Representative (TR) for settlement through the SBL account on the same day when the trade is done.

Collateral must be deposited latest by the following day of the short-sell trade. Acceptable collateral can be in the form of cash or securities prescribed by Phillip Securities Pte Ltd.
The initial and maintenance margin ratio (MR) must be maintained above 130% of the market value of the borrowed and sold securities at all times.

Contracts (short-sell & buy back) should be settled through your SBL Account so that borrowed securities will be delivered on the due date of the sell contract.

When you buy-back the securities, you do not automatically return the borrowed securities. To return the borrowed securities, you must either return them via POEMS 2.0 (Acct Mgmt > SBL >Scrip Returning) or inform your Trading Representative (TR) of your request to return.

Interest charges will be computed as follows:

  • If securities are returned on purchase due date or earlier, interest will cease to accrue on the purchase due date
  • If securities are returned after due date of purchase, interest will cease to accrue two days after the return is done

Margin Ratio (MR) = Total Market Value of Collateral* / Total Market Value of Borrowed & Sold Securities Collateral includes:

  1. Sales proceeds from short-sell trades
  2. Cash pledged into SBL account
  3. Securities pledged into SBL account

You may want to note that only securities prescribed by Phillip Securities Pte. Ltd will be accepted as collateral and these acceptable securities will be assigned a collateralised value.

A margin call will be made if the market value of the borrowed and sold securities increases.
If the increase causes your margin ratio to fall below 130% (but above 120%), you will be informed through your Trading Representative (TR) and you will have to satisfy the margin call within 2 market days.
If the margin ratio drops below 120%, you will have to satisfy the call on the same day to restore the margin ratio to 130% of the borrowed and sold securities.

When a Customer borrows securities from Phillip Securities Pte Ltd (PSPL), the Customer will be required to deposit a required level of collateral. The Customer may be called upon at short notice to place additional deposits if the level of collateral is inadequate in relation to the market value of borrowed securities. If the required deposit is not made within the prescribed time, PSPL may buy-back the borrowed securities without prior notice to the Customer.

In addition, Customers also acknowledge that any and all collateral provided will be title transferred to PSPL as agreed in subsection 3.1 of Section 6 of the Conditions Governing Phillip Securities Trading Account and Customers will have no proprietary right to such collateral as against Phillip Securities Pte Ltd but only an unsecured debt obligation against PSPL, for the value against PSPL for the value of the collateral following the title transfer.


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