The financial volume from securities lending on BM&FBOVESPA reached a record BRL 465,605,784,349.80 in 971,558 transactions in 2010. Financial volume was up 80% on the BRL 258,912,598,639.53 of 2009, in 711,987 transactions.
In December alone there were 91,926 transactions, with a record financial volume of BRL 9,366,371,690.42. Open-interest contracts at the BTC Securities Lending Program of the Brazilian Clearing and Depository Corporation (CBLC) ended December on a financial volume of BRL 22,161,521,363.56.
Securities lending is recommended for investors that do not wish to sell their securities in the short term. It offers extra revenue for those lending, as well as the gross annual revenue of 0.05% that BM&FBOVESPA grants to these investors. The borrower pays a fee to the lender, which is freely agreed upon between the parties.
BM&FBOVESPA acts as central counterparty in the securities lending process, guaranteeing all of the transactions in its electronic system. This means lenders have the guarantee that they will get their shares back.