The program identifies stocks in qualified accounts that are eligible for lending out to other financial institutions to satisfy their customers’ position requirements. While on loan, clients automatically receive 50% of the net proceeds earned by TradeStation for lending out the shares, which is accrued daily and automatically posted monthly to their accounts. Once the client sells a lendable stock or the stock is no longer on loan, the respective daily income ceases to accrue.
John Bartleman, President of TradeStation Group, commented:
“This exciting new program is a ‘win-win’ for TradeStation and for our equities traders. One of its best features is that there are no trading restrictions involved – equities traders can still sell or transfer their positions at any time, just as they would if the positions weren’t on loan.”
“TradeStation’s program is designed specifically for our equities clients, with the overall intention of giving them the opportunity to earn incremental income,” said Michael Cavanaugh, TradeStation Vice President for Brokerage Operations.
The Fully Paid Lending Program is accessible to current equities account holders through TradeStation’s Client Center. New clients can apply during the online account opening process.
TradeStation Securities offers the TradeStation analysis and trading platform to the active trader and certain institutional trader markets. Its platform offers electronic order execution and enables clients to design, test, optimize, monitor and automate their own custom equities, options, and futures trading strategies. The company is a licensed securities broker-dealer and a registered futures commission merchant (FCM), and a member of major stock, options and futures exchanges in the United States.
