Fully Paid Lending after Enabling Margin
Summary of User’s Issue and Solutions Discussed:
- The user reports that after enabling margin in early 2022, their shares have not been loaned out despite being in the Fully Paid Lending Program, and they question if there is a connection between the two events.
- Fidelity clarified that simply enabling margin does not affect the lending of shares in the Fully Paid Lending Program, and no additional steps are required for shares to be eligible for lending.
- Fidelity mentioned that all eligible securities can be considered for lending and that users receive statements regarding any loaned shares, but they do not proactively notify users before borrowing occurs.
Here’s the full thread
I joined the fully paid lending program in late 2020. While my holdings aren’t in high demand, I consistently had shares lent out at least every couple of months. After enabling margin in early 2022, no further shares were ever loaned despite having no margin debit. I also noticed that the “Loaned Securities” page disappeared around the same time. I had called in a while ago and was told that everything seemed to be enabled, but it’s now been more than a year since any lending activity has occurred in my account.
Is there a difference in how margin accounts are treated in the Fully Paid Lending Program that could be the cause here? I don’t have a margin debit, so all holdings are fully paid. I suppose it’s possible that the timing is a coincidence, but it seems strange that all lending stopped at the same time I added margin to my account.
Thanks!
Hi there @ShadowRegent, thanks for your question.
Simply enabling margin won’t impact whether or not your shares will be lent when enrolled in our Fully Paid Lending program. Once you have enrolled your account in the service, no additional steps need to be taken.
All eligible securities you hold either now or in the future can be considered for lending purposes. Please note that while you do receive statements and confirmations that provide details about securities that you have loaned, Fidelity does not proactively contact you prior to borrowing your shares.
To learn more about our program, please visit our Fully Paid Lending page. We have a FAQ located at the bottom of the page as well as a PDF file that contains additional details.
Fidelity Fully Paid Lending: https://www.fidelity.com/trading/fully-paid-lending 🟢