The Stock Yield Enhancement Program allows the company to borrow eligible assets from your Moomoo SG universal account under your User ID and then lend them to counterparties who wish to engage in short selling and are willing to pay interest on the borrowed eligible assets. Interest will be credited to your account every day when the eligible assets are lent out.
Note: Moomoo SG will automatically borrow the shares based on market demand from your account and will not notify you in advance.
Eligible assets that can be lent are: US common stocks (listed on the exchanges, PINK and OTCBB), US ETF.
The interest that clients can earn on stock lending depends on the market demand of the eligible assets and on the interest rate in the over-the-counter securities lending market, which may vary greatly depending on the type of eligible assets and the date of borrowing.
The SBL (Stock Borrowing and Lending) service provider provides the interest rate for the Stock Yield Enhancement Program. Moomoo SG splits the interest income received from SYEP 50/50 with its clients.
The direct counterparty to whom you are lending your eligible assets is Moomoo SG. Moomoo SG may lend your eligible assets to any counterparty, and not only to Moomoo SG clients.