(Global) Master Securities Lending Agreements

Master securities lending agreements permit counterparties to exchange cash for securities. Structured as agreements for the loan of securities, they have the economic effect of permitting the borrower to use particular types of securities for a given amount of time typically at a cash price.

Customizable preprinted forms of these agreements are available in the US from the Securities Industry and Financial Markets Association (SIFMA) and globally from the International Securities Lending Association (ISLA). The SIFMA Master Securities Loan Agreement most widely in use is that published in 2000, although the 2017 and 1993 versions are also available. The versions of the ISLA Global Master Securities Lending Agreement most widely in use are those published in 2000 and 2010. The 1995 Overseas Securities Lender’s Agreement is the predecessor to the Global Master Securities Lending Agreement.