At DriveWealth, we’ve always believed that the path to democratizing investing for all is paved through better data. Beyond simple price discovery, a deeper layer of insight into market participants, ticker demand, and company-level activity serves as a catalyst for financial empowerment. By surfacing these deeper layers of insight, we enable our partners to provide a sophisticated, seamless retail investment experience for their users.
To deliver on this promise of empowerment, we’ve enhanced our Fully Paid Securities Lending (FPSL) program with the introduction of our Lending Rate API.
What is Fully Paid Securities Lending?
Before we dive into what this enhancement is, it’s important to understand the engine behind it. FPSL is an opt-in process in which investors loan their fully paid shares to DriveWealth LLC, which then loans out other market participants. In exchange, the borrower provides collateral and pays a fee or “rebate” to the lender for the duration of the loan. DriveWealth’s FPSL program brings access to that yield to the retail investor holding these shares.
Surfacing Deeper Insights: The Lending Rate API
- Real-Time Visibility: Display 30 day average lending rates at the individual security level
- Institutional Breadth: Deliver data that covers approximately 800 symbols per day, ensuring a comprehensive view across qualified tickers
What’s Under the Hood
Typically, these rates are not exposed to retail investors. Only institutional investors have the opportunity to preview potential earnings, leaving retail investors in the dark and confused why their positions earn what they do. By incorporating the averageLendingRate field directly into our Instruments API, we’re removing this friction. Partners can now surface the 30 day historical average lending rates for assets a user currently holds or is considering for their next move, transforming a previously opaque process into a transparent, actionable data point that empowers users further.
GET /instruments/AAPL
{
"symbol": "AAPL",
[...]
"averageLendingRate": 0.02
}
GET /instruments/NVDA
{
"symbol": "NVDA",
[...]
"averageLendingRate": 0.04
}
GET /instruments/NCI
{
"symbol": "NCI",
[...]
"averageLendingRate": 2.1025
}*Numbers displayed above are API examples only and not representative of actual lending rates.
Disclosures:
DriveWealth, LLC is a member of FINRA and SIPC.
FPSL Risks: Participation in Fully Paid Securities Lending (FPSL) involves risks: (1) Lent securities are not protected by SIPC; cash collateral may be the sole source of satisfaction if securities are not returned. (2) You waive voting rights on lent shares. (3) Tax Treatment: Payments in lieu of dividends are typically taxed as ordinary income. (4) Performance: Historical rates (e.g., 30-day average) are for informational purposes and do not guarantee future results; rates vary by market demand.
DriveWealth provides technology and execution services; this is not an investment recommendation or financial advice.
For full program details and additional legal disclosures, visit: https://legal.drivewealth.com/