By enrolling in the Fully Paid Securities Lending (FPSL) program, you have the ability to earn monthly interest payments by lending out your fully paid eligible US securities to borrowers via our brokerage partner, Alpaca.
Alpaca facilitates the end-to-end lending process, enabling approved borrowers (typically for the purpose of short selling or trade settlements) to borrow your securities at market-based interest rates. You will then receive a portion of the interest payment received from the borrower based on the underlying value of the securities loaned out. Your enrolment in the FPSL program does not guarantee that your securities will be loaned out as this will depend on market demand. All securities lending involves certain risks (scroll down for more information).
Important Note:
Participation in the FPSL Program is only available to Sarwa Trade account holders who meet eligibility criteria (see below). Your enrolment in the FPSL program is optional. It comes with certain risks (scroll down for a detailed list of some of these risks).
Sarwa does not provide any recommendation or advice to clients in relation to the FPSL Program. If you choose to enrol in the FPSL program via your Sarwa Trade account, we do not undertake any form of assessment to determine whether participation in the FPSL program is suitable for you. Your decision to participate should be based on your own financial situation, risk tolerance, and investment goals.
The FPSL Program is operated and managed entirely by Alpaca, not Sarwa. Alpaca is responsible for all lending operations, counterparty agreements, and collateral management under its Master Securities Lending Agreement (MSLA).
Sarwa does not guarantee any income or returns from the FPSL Program and is not responsible for any losses. Results may vary with market conditions, and past performance is not a guide to future outcomes.
If you decide to participate in the FPSL program and any interest is earned from your loaned securities, both Alpaca and Sarwa may keep a portion of that interest. You will also receive part of the interest as part of your overall earnings from your loaned securities. This revenue sharing arrangement is entirely separate from, and does not form any part of the fees or charges payable by you in connection with your Sarwa Trade account. This arrangement does not affect the nature, quality, or impartiality of the services provided by Sarwa to you but may give rise to a potential conflict of interest. We manage any potential or actual conflicts through our internal controls and by ensuring that our communications are always clear, fair, and not misleading.
Before enrolling in the FPSL program via your Sarwa Trade account, you should carefully review the Alpaca risk disclosures and MSLA to make sure you accept the terms and risks associated with your participation in the FPSL program.