A Shift in Lending Rates: Japan Securities Finance Co., Ltd. Lifts Temporary Measure on Stock Loan Fees
Tokyo, Japan – September 12, 2025 – Japan Securities Finance Co., Ltd. (JSF) announced today the discontinuation of a temporary measure concerning the maximum lending fee rate for stock borrowing transactions. This significant development, effective from September 12, 2025, marks a return to standard practices following a period of elevated fees designed to address specific market conditions.
The temporary measure, which had been in place to manage situations of stock scarcity or “pin-gashi” (品貸し) in certain securities, allowed for higher lending fees to be charged. The objective of this extraordinary measure was to encourage the return of borrowed shares to the market by making borrowing more expensive, thereby alleviating supply constraints.
With the lifting of this temporary measure, JSF is signaling a stabilization in the supply and demand dynamics for borrowed securities. This implies that the acute scarcity that necessitated the elevated fees has sufficiently subsided. The return to standard lending fee structures is expected to provide greater predictability and potentially lower costs for market participants engaged in stock borrowing activities.
What This Means for Market Participants:
- Reduced Borrowing Costs: For investors or institutions requiring borrowed shares for strategies such as short selling or arbitrage, the cost of borrowing is likely to decrease as the temporary surcharge is removed.
- Increased Market Liquidity: The easing of lending fee restrictions could encourage more active participation in the stock borrowing market, potentially contributing to improved overall market liquidity.
- Return to Standard Operational Procedures: Market participants can now revert to their standard operational procedures and cost calculations without the influence of the temporary “pin-gashi” fee adjustments.
- Focus on Fundamental Supply and Demand: The discontinuation of this specific measure suggests that the market is now expected to operate more on the basis of fundamental supply and demand for individual securities, rather than being subject to externally imposed fee caps.
Japan Securities Finance Co., Ltd. plays a crucial role in the smooth functioning of the Japanese securities market, particularly in facilitating lending and borrowing transactions. The careful management of such measures underscores JSF’s commitment to maintaining market stability and efficiency. This decision to lift the temporary “pin-gashi” fee measure reflects a positive assessment of the current market environment and a return to more normalized trading conditions.
Further details regarding specific securities that were previously subject to these restrictions, and the exact transition back to standard rates, are available through official channels of Japan Securities Finance Co., Ltd. Market participants are advised to consult these resources for the most precise information relevant to their operations.
貸借取引の品貸し申込みにおける品貸料の最高料率に係る臨時措置の解除について（9/12） – 銘柄別制限措置
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日本証券金融 published ‘貸借取引の品貸し申込みにおける品貸料の最高料率に係る臨時措置の解除について（9/12） – 銘柄別制限措置’ at 2025-09-12 07:14. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.