Also referred to as stock lending. The transfer of all right, title and interest in and to a pool of securities against a promise to subsequently return equivalent securities. The borrower transfers to the lender other securities or cash as collateral. Typically, the loan will be made to a market maker or other dealer in securities to enable it to fulfill an obligation to sell securities or to enable it to comply with certain regulatory requirements.

Securities lending is usually documented using a negotiated standard form document. US securities lending transactions are usually documented using the Master Securities Loan Agreement (MSLA), published by the Securities Industry and Financial Markets Association (SIFMA). The MSLA is available on the SIFMA website.

For details on the MSLA, see Practice Note, Securities Lending: Overview (US): Documenting Securities Lending Transactions in the US: The Master Securities Loan Agreement (MSLA).