Optiver Principal Strategic Investments (PSI) is pleased to participate in the Series B funding round for Sharegain, an innovative new solution for brokers and asset managers to borrow and lend securities.
Sharegain has pioneered Securities-Lending-as-a-Service (SLaaS), a digital solution that allows private banks, asset managers and online brokers to lend their stocks, bonds and ETFs to generate additional revenue for them and their clients. A customizable product that can be rolled out in weeks rather than years, SLaaS opens up the securities lending and borrowing industry to an entirely new segment of market participants.
The $3 trillion securities lending and borrowing industry helps facilitate a liquid secondary market in stocks, bonds and ETFs. For market makers in particular, the ability to efficiently hedge and manage risk is crucial to being able to provide a continuous tight bid/ask spread.
As a leading global market maker, Optiver relies on the securities lending and borrowing market to support its operations. A robust market facilitates better liquidity provision, which directly leads to lower costs for investors through tighter spreads, making Sharegain’s platform a natural strategic fit.
“The ability to sell short is critical for market makers to fulfill their role of providing liquidity to all market participant at all times,” said Edward Monrad, head of PSI Europe at Optiver. “The securities lending and borrowing industry remains weak for certain securities, such as Europe-listed ETFs. Improving that market can help tighten spreads, particularly for on-screen, retail-sized trading, helping smaller investors trade stocks and ETFs, as well as less liquid shares.”
“We are excited that Optiver PSI, a leading global market maker, is joining Sharegain and our shareholders on our mission to democratize securities lending,” said Boaz Yaari, Founder and CEO of Sharegain. “Following this investment round, Sharegain is perfectly positioned to leverage our existing SLaaS technology to improve market liquidity, as well as to develop our offering and continue to open up securities lending for private investors worldwide.”
Optiver PSI is actively partnering with entrepreneurs and founders shaping financial markets of the future. To learn more, please visit: https://www.optiver.com/psi/