Once the Interest Rate is know the Basis points Received is calculated as follows: Basis Points Received  r ï‚´10,000 An approximate calculation for Basis Points Received can be obtained by using the formula: 360  EFP Bid Price  Estimated Dividends  Basis Points Received   ï‚´ 10,000  Stock Ask Price   Days to expiry Summary Securities Lending is where buyers and sellers meet to exchange an asset for a short term in return for basis points of compensation. Lenders can deliver the asset to the borrowers through an SSF transaction by either purchasing outrights for future delivery or pricing the EFPs in such a way to increase the basis points received for the ‘loan’. Funds have a fiduciary responsibility to their participants to maximize the returns without exposing the assets to unnecessary risk. SSFs competitive trading in a transparent process without counterparty risk exposure is a viable alternative. .