automated security lending programme (ASLP)

An automated securities-lending programme is a bank-facilitated service in which securities owners can earn returns by making selected assets available for borrowing while receiving other eligible assets as collateral. The bank may either take the transactions onto its own balance sheet and stand between the parties, or manage the service on behalf of the securities owner without becoming the trading counterparty. In either model, the programme's revenue generally comes from the spread between the relevant financing terms.