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What are the risks associated with Share Lending?

As with all investment activities, there are risks associated with share lending, but here is how we have managed them:

Risk

Safeguard
The borrower doesn't return your shares. Your shares are secured by colleteral in the form of US treasuries for Trading 212 UK, and cash for Trading 212 Markets, protected as any other client investment.
Intraday price volatility. The value of your lent shares can increase, or the colleteral value can decrease, leaving you insufficiently collateralised. The collateral is minimum 102% of the value of your lent shares and adjusted daily. 
Trading 212 and all other parties simultaneously go bankrupt.
  1. Trading 212 UK Ltd. - Up to £85,000 protection by the FSCS (Financial Services Compensation Scheme).

  1. Trading 212 Markets Ltd. - Up to €20,000 protection by the ICF (Investors Compensation Fund). In addition to the ICF, Trading 212 Markets Ltd. provides its clients with free private insurance from Lloyd’s of London, giving coverage of up to €1 million.

 

How are my lent shares protected?

You will receive collateral of at least 102% of the value of the lent shares. The collateral will be in the form of US treasuries for Trading 212 UK, and cash for Trading 212 Markets. It will be adjusted daily to match the value of the shares. The collateral will follow the same regulatory rules as your other investments.

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