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BlackRock puts cap on ETF securities lending

22 June 2012


BlackRock has implemented a 50% restriction on securities lending in its iShares ETFs

Read more: BlackRock ETFs iShares

BlackRock has imposed a 50% cap on securities lent in its iShares exchange-traded fund (ETF) range in response to client feedback.

The feedback showed that while clients were happy with the additional returns generated from securities lending activity and the risk management process used, most preferred to limit the amount of lending in the funds. The cap brings iShares Emea range into line with the company's US ETFs which are already subject to the 50% lending restriction to keep in line with US regulation.

The cap is one...