Velox Clearing’s planned fully paid securities-lending programme would give its brokerage and institutional clients another way to generate income from securities already held. Its 8 October announcement names Sharegain as lending agent, with the service still described as planned. No launch date or customer revenue split is specified.[1]
The choice allows Velox to use an outside lending specialist rather than construct the programme entirely in-house. Sharegain says the arrangement is intended to extend lending to underlying investors while providing account-level and security-level control. Its role as agent matters because arranging a loan and becoming the borrower are different contractual responsibilities.[1]
FINRA Rule 4314 requires a member acting as lending or borrowing agent to disclose that capacity. It also addresses records identifying the principal, securities and collateral where an agent participates. The agreements therefore need to identify who owes the securities back and which party holds the collateral.[2]
Revenue needs the same precision. FINRA describes the typical model as a broker borrowing customer securities and lending them onward for a daily fee, generally divided among clearing firm, introducing broker and customer. For Velox clients, the relevant figure will be the investor’s agreed share after the programme’s allocation of fees.[4]
FINRA’s published customer-protection guidance identifies compensation factors, voting rights, sale restrictions, collateral risks and tax consequences as required disclosure subjects. It also calls for a prominent notice that protection under the Securities Investor Protection Act may not cover the loan and that collateral may be the only recovery source if the borrowing firm fails to return the securities.[3]
These terms affect the commercial proposition directly. A higher gross lending rate can be less valuable to an investor if their share is smaller or the loan creates an unwelcome tax consequence. The useful next document is the programme agreement: it will connect the planned additional income to the precise securities, counterparties and customer rights involved.[3]
Sources & further reading
- Velox Clearing chooses Sharegain to launch fully paid securities lending Sharegain · 8 Oct 2026 · Accessed 21 Oct 2026
- FINRA Rule 4314 — securities loans and borrowings FINRA · Accessed 21 Oct 2026
- Regulatory Notice 14-05 — securities lending and customer protection FINRA · 3 Feb 2014 · Accessed 21 Oct 2026
- FINRA fines Apex Clearing for fully paid securities lending violations FINRA · 4 Feb 2025 · Accessed 21 Oct 2026