IG Lending My Shares

[GrahamB]

Do IG lend out my shares to other third parties without my knowledge??

My shares are ordinary and in a stocks and shares ISA.

 

Thanks in advance

Graham

[Caseynotes]

IG use the 'Custodian' model which allows trading on digital exchanges. This means you don't actually hold the shares and so don't have voting rights at AGMs etc. They are all held by a third party (Citi Bank), couldn't say what they do but you are guaranteed that the shares are yours and you can sell on demand if the exchange allows.

[GrahamB]

19 hours ago, Caseynotes said:

IG use the 'Custodian' model which allows trading on digital exchanges. This means you don't actually hold the shares and so don't have voting rights at AGMs etc. They are all held by a third party (Citi Bank), couldn't say what they do but you are guaranteed that the shares are yours and you can sell on demand if the exchange allows.

Hi Casey,

 

Thank you for reply.. I wanted to make sure my shares are not being loaned out ... is there anyway to signal my preference for shares not to be leant out to anyone else?

 

I guess not according to your response above .... I may need to move from IG to one that will honour my wishes ..

Thanks

 

Graham

Edited June 14, 2021 by GrahamB

[Caseynotes]

4 hours ago, GrahamB said:

Hi Casey,

 

Thank you for reply.. I wanted to make sure my shares are not being loaned out ... is there anyway to signal my preference for shares not to be leant out to anyone else?

 

I guess not according to your response above .... I may need to move from IG to one that will honour my wishes ..

Thanks

 

Graham

I don't think you need worry, never heard of any problems having followed IG in the news for over 10 years and on the forum here since it started late 2015.

You are correct though that some institutions do lend shares to short sellers. Can't see that it's a problem for IG as they don't actually hold the shares (see first reply) and for a long time now they don't allow you to sell stocks you don't already own.

You can short CFD contracts but they're not actual shares and even so you will often see a note to say certain share cfd contracts are 'unborrowable' (to enter short).

I'll try a deep search to see if I can find anything on the website.