_:n0f1c71af3d7a448e99bc0fac1c4cdaebxb34
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"<p>According to the European fund UCITS directive and the Swiss CISA, securities lending may be up to 100%. Actual lending rates for UBS ETFs have been considerably lower. UBS ETFs have set a cap of 50% of the net asset value of an ETF on securities lending, while some are capped at 25% in order to meet market requirements.<br><strong>To minimize securities lending risk for UBS ETFs, borrowers are carefully selected and monitored on a daily basis</strong>. Before borrowers receive the securities, they must provide the lender - the ETF - with collateral. The collateral assets serve to secure the borrower's obligations to the lender. The collateral is transferred to a completely separate custody account or collateral account that is ring-fenced from the lender's balance sheet.<br> Securities lending may be terminated on demand by the lender on a daily basis. A <strong>daily mark-to-market valuation of loans and collateral</strong> ensures that the value of the collateral posted by the borrower is always adjusted to the correct level. In addition, securities lending transactions of UBS ETFs are always overcollateralized to a minimum of 105%. For Swiss-domiciled ETFs, a valuation haircut is additionally applied to the underlying collateral. Securities lending ceases when it is terminated by the ETF or the borrower's demand is satisfied. The collateral held is returned to the borrower only after the securities have been returned to the ETF.<br></p>"
<https://www.ubs.com/global/en/assetmanagement/capabilities/etfs.html>