SGX Securities Borrowing and Lending Enhancement Phase 2

Just received a letter two days ago from SGX informing Securities Borrowing and Lending (SBL) Program participants that they will be rolling out their phase 2 enhancement on 02-Dec-19. So what is this Phase 2 all about?

Following their Phase 1 enhancement which was rolled out 09-Dec-18, they have successfully increase the pool of shares available for lending by retail investors:

1. For a security priced $1 or below, you must own a minimum of 10,000 units (previously 50,000 units) of that security; and
2. for a security priced more than $1, you must own a minimum of $10,000 in value of that security.

(My own opinion: Yeah, they have increase the pool of shares available to short. >.<)

For Phase 2, they will be switching to variable rate pricing for the lending and borrowing fee. Currently, the borrower pays a fixed 6% per annum, while the lender receive 4%. SGX said in the letter that the 6% rate is generally higher than charged by other SBL providers, thus a deterrent for borrowers whose shares are kept at CDP. 

Under the new structure: Lenders will get a fixed 70% of the borrowing fee, which is higher than the current 66.67% (4% lending fee) of the borrowing fee. (My own opinion: Yeah, that is only true for borrowing fee above 5.75%. However, if they managed to entice more share borrowing by lowering down the borrowing fee, lenders will get to benefit as more of their shares are loaned out. That unfortunately, means that there is more shorting of shares. >.<)

With this Phase 2 roll out, will that means I will have more shares loaned out? Only time will tell.