1. Introduction
Stock Yield Enhancement Program (SYEP) refers to a plan in which TigerBrokers, as the client's counterparty, lends the long stock positions in the client's account to investors who are willing to short and pay the securities lending interest, and subsequently pays part of the securities lending interest to the client as return.
2. Securities Which Can Be Lent
The U.S. market includes U.S. common stock (listed on the Exchange, Pink and OTCBB), ETF.
Hong Kong market includes HK common stock, ETF.
Note: Once you opt-in for the Stock Yield Enhancement Program, you will be regarded as agreeable to lend any of your positions with any quantities. You cannot choose the shares and quantities to be lent.
3. Stock Yield Enhancement Program Interest Calculation
The SYEP interest depends on the market demand of the stock and the interest rate of the lending date in OTC securities lending market. If there is no demand to borrow the stock(s), there will be no interest.
If there is any interest, Tiger will distribute part of the interest to the clients. If there is no demand to borrow the stock(s), there will be no interest.
Note: The interest rate of the lending market may fluctuate frequently, such as rising or falling by 50% or even more, which will affect the lending interest.
4. View the Lending Details
You can view the SYEP-related details in the statement, including Symbol, Quantities, Interest amount etc.
The interest is accrued daily and is credited on the 3rd-5th business day of next month.
Due to the holiday or delayed notification from the counterparty, Tiger may process stock lending activities of several days at one time, as such, you may see SYEP details of several days are displayed on one particular day.
5. The Impact of Opting in the SYEP on the Clients
1）Does it affect the selling, buying power or the risk status?
No. You can still sell the stock at any time. After selling, Tiger will recall the shares from the borrower and settle the transaction on behalf of you on the settlement day. The lending activities of the stock will be terminated accordingly.
Tips: when your application of opt-in/out is being processed, your order to be filled may be cancelled (the partially filled order may also be cancelled).
2）Does it affect corporate actions such as Meeting Vote and Dividend?
Once the shares are lent, the client will not be entitled to the corresponding voting rights of the shares anymore. Generally, the lent shares will be recalled and returned to the lender (but not guaranteed) before the dividend payout. Even if the shares are not returned, the client will still be entitled to the dividend corresponding to the shares.
6. Lending Termination Circumstances
- Transfer the Stock Out
- Sell the Stock
- Option Exercise/Assignment
- Account Closure
- Opt out for the Stock Yield Enhancement Program
6. Others
1) When you submit an application to opt-out for the Stock Yield Enhancement Program, Tiger will process it within 10 working days excluding the day of submission.