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SECURITIES BORROWING & LENDING

CIMB Investment Bank has been approved by Bursa Securities to be a Lending Agent and Borrower and we have successfully lent out shares to other market participants. At CIMB, we add value by helping clients earn incremental income on their Securities Borrowing and Lending (SBL) activities, while simultaneously managing our SBL program to mitigate any risk. The SBL desk is internally managed and features teams of professionals dedicated to client service, compliance, operations, system and risk management.

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Market Mechanics

	Bursa SBL system operates on the Central Lending Agent (CLA) framework
	Bursa Securities assumes the role of CLA
	Bursa will borrow from lenders and onward lend to Borrowers
	It manages the “lending pool” and please click to view the pool.

Advantage

The benefit of Bursa Securities being the CLA:
	Guarantee the fulfillment of all SBL transactions
	Provide a central location for the borrower to identify targeted securities for borrowing
	Manage risk associated with the borrowings
	Provide a hub for all information pertaining to SBL

Eligible Securities

	List of Eligible Securities permitted for Regulated Short Selling(RSS)/SBL

Loan Tenure and Requirement

	All SBL loans is based on open tenure
	It does not have any expiration or maturity
	All loans may be terminated at any time by lenders recalling or borrowers returning the loaned securities
	The minimum loan tenure for SBL is 1 (one) market day
	The minimum quantity for lending is 50,000 units
	The minimum borrowing quantity is set at 100 shares

Regulated Short Selling

	All borrowers are required to open a designated Regulated Short Selling (RSS) Trading account
	All securities borrowed will be credited into this designated account except for potential fail trade
	RSS is only allowed to be executed on up tick rule
	RSS trades are limited to 10% of paid up capital of a particular securities per day
	RSS activities for that particular securities would be suspended for 1 (one) trading cycle once the limit is breached
	Usage of designated RSS account adds greater transparency and allows close monitoring

Lenders

	The major incentive is the stable fee income generated by otherwise idle asset
	Represents efficient portfolio management

Borrowers

	Complements a larger trading strategy, typically designed to profit from perceived pricing discrepancies between related securities
	Provides avenue for hedging

Market Practice

	All borrowers are required to place collateral with the Authorized Borrowers
	Initial and maintenance margin is set at 110% and 105% respectively
	All loaned positions and collateral will be marked to market daily

Permitted Collateral

	Cash
	Bank Guarantee by approved financial institutions
	Bursa Securities quoted securities subject to hair cut
	Foreign currencies

CIMB SBL Fee Structure:

Type of Fee	Bursa	CIMB (% or Amount)
CDS A/C Opening Fee	RM10.00	RM20.00
Administrative Fee	Nil	RM30.00
Processing Fee per Matched Trade	RM100.00	Bursa + RM20.00
Borrowing Fee	2.20%	Bursa + CIMB Spread
Penalty Fee	1.00%	1.00%

Lenders

	Letter of Appointment of Lending Agent
	Application to be Approved as a Lending Participant (Prescribed form:TAC010)
	Application for Opening of Account (Prescribed form:SBL010)
	Criteria for Board Resolution on Opening of SBL Lending Account
	Criteria for Board Resolution for Appointment of Lending Agent

Borrower

	Application for Securities Borrowing and Regulated Short Selling Form
	SBL Borrowing Terms & Conditions
	Criteria for Board Resolution on Opening of SBL Borrowing and RSS Trading Account

Market Mechanics

Advantage

Eligible Securities

Loan Tenure and Requirement

Regulated Short Selling

Lenders

Borrowers

Market Practice

Permitted Collateral

Lenders

Borrower

Other Supporting Documents (Applicable for both Lender and Borrower)