State Street Bank and Trust Company continue to lend shares for shorting as of the latest disclosure in the Form 604 lodged on 13 May 2025, covering transactions up to 9 May 2025.
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Key Evidence That Lending Continued:
1. Explicit Disclosures of Securities Lending
Throughout the document (particularly in Annexure A and B), the following is clearly and repeatedly stated:
> “State Street Bank and Trust Company has lent the securities and retains a relevant interest under section 608(8A) as the lender.”
This phrase appears next to multiple entities and transactions, confirming that securities lending is active and ongoing. This lending is what enables short selling.
2. Transaction Log – Lend for Stock Lend
On 8 and 9 May 2025, State Street recorded multiple entries marked as:
“Lend – for stock lend”, indicating shares were actively loaned out.
These include large parcels (e.g., 1,500,000 shares and 1,457,915 shares on 8 May), which are significant in size and material to short market activity.
3. Collateral Received Entries
Many entries state “Collateral received” alongside lent securities, which confirms the economic structure of a securities lending arrangement — these are not outright disposals, but temporary transfers facilitating short positions.
4. Agreements in Force
Annexures B and C reference:
Securities Lending Authorisation Agreement
Global Master Securities Lending Agreement
These are the legal frameworks under which the lending is conducted. No termination or suspension of these agreements was indicated.
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Summary
State Street has clearly continued to lend shares of BOE, allowing those shares to be shorted on the open market. Notably:
Large quantities were lent in early May (especially on 8 May 2025).
The company still retains the legal right to recall shares at any time.
There is no scheduled return date, giving short sellers flexibility but also exposing them to risk if State Street initiates a recall during a price surge.
This confirms that a significant proportion of the high short interest in BOE is facilitated by institutional lending like State Street. While this creates overhead supply risk, it also sets the stage for a potential squeeze if those shares are recalled or shorts are forced to cover rapidly.
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