Oct. 30, 2022
October 30, 2022 The lending of securities requires the same consistency and transparency that exists in all other forms of lending. A stock market only has integrity if: A. The public knows who the lender of shares is (not just the security itself) and the borrower of shares. Both parties must be publicly identified. B. The lender must be notified and given the choice to lend their shares. If shares are held in street name inside a brokerage, the lender has the right to know, both for dividend taxation and voting rights. C. Eliminate onward lending - it creates a cascade of IOU and phantom shares, and muddles the voting process and poisons corporate governance issues. D. And most egregiously - all loans in all markets have due dates - so put an expiration date on lent shares