However, if a title on the list cannot be delivered as promised (this results in “non-delivery”), the assumption of a reasonable reason no longer applies. To better support these assumptions, the ETB list should not exceed 24 hours. SBL`s activities in Hong Kong have a similar profile to the company in the world, as described in the previous section. Large Agent lenders based in Hong Kong operate their SBL business through a global 24-hour reservation system through their offices located in different time zones. They bundle securities from investors such as US or European pension funds and insurance companies and lend to borrowers who are mainly the major brokers and investment banks. These parties, on the other hand, may lend on their own behalf or more often on behalf of their clients, such as hedge funds or smaller brokers, on who whohalf they accept counterparty risk. Thus, smaller borrowers whose customers of lenders` funds do not wish to be exposed can nevertheless participate in SBL operations. Some lenders only take collateral in U.S. dollars. 4. Overseas experience in the field of centralized securities lending and lending services Borrowing and lending securities is growing worldwide and in the Hong Kong market.

. . .