ALBM basics

Securities Lending Price (SLP): The benchmark rate at which all lending and borrowing transactions are effected by NSCCL. It is the closing price of the security in the NSE on the day prior to the ALBM session. The SLP is downloaded as a message broadcast on the day of the ALBM session.

Transaction price: This is the rate at which transactions are executed in the spot book of the NEAT system of the NSE.

Execution date: This is the date on which the lenders/borrowers of securities have to deposit securities/funds respectively, with the AI.

Funds: This is nothing but the 100 per cent cash collateral to be deposited by the borrower of securities towards the loan.

Lending income: The difference between the securities lending price and the transaction price determines the fee/rebate for a security of that particular transaction. An Yield Calculator has been incorporated as an additional feature of the NEAT system. This allows participants to calculate the yield on the terminal for a given securities lending price, execution price and loan tenure.

(Source: www.nse-india.com)