FPSL Integration Guide for Fully Disclosed

General Knowledge Points

• Interest is accrued daily (actual / 360 basis) and is paid out on a monthly basis.
• Collateral will be held for the customers in a custodial account at a tri-party bank and will be recalculated daily depending on market changes for the securities on loan.
• There would be no margin/buying power/equity implications to have securities on loan.
• When customers lend out their shares, they forfeit voting rights. Customers need to unenroll their accounts from FPSL if they wish to regain shareholder voting rights.
• When a stock is lent, the borrower is entitled to the dividend. However, the lenders (customers) will receive a “Substitute Payment in Lieu of Dividend” which may be subject to different tax rules than dividends.
• There is no guarantee any given share will be lent, because that depends on borrow demand, and rates move with supply and demand for the individual security. Customers also cannot choose which securities to lend. Enrollment applies to the whole eligible portfolio.
• FPSL is only available in certain countries and models. For questions, reach out to your Alpaca contact.
• Just because a share is in lendable inventory, does not mean that all of the shares will go out. Utilization of lendable inventory depends on the market demand for the specific security.
• Through vendor partners, any participant that Alpaca lends shares out to is a licensed and regulated broker-dealer, hedge fund or institution.

Prerequisites

Before using FPSL APIs, ensure:

1. The account holder meets the country eligibility requirements for FPSL. Alpaca validates the country of tax residence, and for legal entities, country of incorporation. The account must not be an account linked under a master account. Any accounts linked under a master account will receive an error message saying fpsl enrollment is not supported on customer subaccounts
2. Any one of the following pre-requisites must be met:
   1. $2,500 in total account balance
   2. $20,000 in reported income
   3. $20,000 in liquid assets
   4. Stock investment experience reported as anything other than none
3. Required Agreements: The account must have signed:
   1. master_securities_lending_agreement

Step 1: Get Available FPSL Tiers

Endpoint: GET /v1/fpsl/tiers
Purpose: Determine what FPSL tiers are available.

Key Considerations:

• Tiers are provisioned by Alpaca during onboarding. Partners do not create, update, or delete FPSL tiers through this API.
• The customer_split and partner_split represent the percentage of interest revenue from the gross amount paid. For example, a customer_split of 0.20 means that if a security generates $10 in interest revenue, the customer will receive 20% of that amount, which is $2.
• Partners can determine the appropriate customer_split.

Request Example:

curl --location 'https://broker-api.sandbox.alpaca.markets/v1/fpsl/tiers' \
--header 'Authorization: Basic <your-credentials>'

Query Parameters:

• tier_name (optional): Exact tier name
• market (optional): Filter by market (e.g., "US")
• sort_by (optional): Sort by tier_name, market, customer_split, or partner_split
• direction (optional): asc or desc (default is desc)

Response Example:

[
  {
    "id": "9BAB56CA-CE9A-4C87-A702-3365F92C2EB5",
    "tier_name": "gold",
    "market": "US",
    "customer_split": "0.20",
    "partner_split": "0.47",
    "created_at": "2024-06-11T19:00:00.000000Z",
    "updated_at": "2024-06-11T19:00:00.000000Z"
  },
  {
    "id": "2F4EF316-E076-4389-BDCC-96033C69E707",
    "tier_name": "regular",
    "market": "US",
    "customer_split": "0.10",
    "partner_split": "0.57",
    "created_at": "2024-06-11T19:00:00.000000Z",
    "updated_at": "2024-06-11T19:00:00.000000Z"
  }
[

Filtering Examples:

# Filter by market and tier name
curl --location 'https://broker-api.sandbox.alpaca.markets/v1/fpsl/tiers?market=US&tier_name=silver'

# Sort by partner split descending

curl --location 'https://broker-api.sandbox.alpaca.markets/v1/fpsl/tiers?sort_by=partner_split&direction=desc'

Step 2.1: Communicating Customer Consent

Work with your Alpaca contact to ensure that you are following the correct requirements for communicating customer consent.

Endpoint: POST v1/accounts/
Endpoint: PATCH /v1/accounts/{account_id}
Purpose: Acknowledge master securities lending agreement

Key Considerations:

• revision is optional, if left blank it will default to the latest revision number
• fpsl.status will be shown in the response body, more details about this status provided in the section below
• fpsl property must be set at the time of enrollment
• A partner can consent (sign the MSLA) and enroll/assign a tier in the same call, and it works for both create and patch

Request Example:

curl --location --request PATCH 'https://broker-api.sandbox.alpaca.markets/v1/accounts/{account_id}' \
--header 'Content-Type: application/json' \
--header 'Authorization: Basic <your-credentials>' \
--data '{
    "agreements": [
        {
            "agreement": "master_securities_lending_agreement",
            "signed_at": "2024-07-11T18:09:33Z",
            "ip_address": "185.13.21.99",
            "revision": "<insert updated revision number>"
        }
    ]
}'

Response: Returns the updated account object with 200 OK HTTP status:

200 OK 

Step 2.2: Enrolling the account

Endpoint: PATCH /v1/accounts/{account_id}
Purpose: Enroll an existing account in FPSL program

Request Example:

curl --location --request PATCH 'https://broker-api.sandbox.alpaca.markets/v1/accounts/{account_id}' \
--header 'Content-Type: application/json' \
--header 'Authorization: Basic <your-credentials>' \
--data '{
    "fpsl": {
        "US": {
            "tier_id": "5cd4d4cf-fda9-4949-99d7-9e4a4613dc2d",
            "status": "ACTIVE"
        }
    }
}'

Enrollment Rules

• tier_id is required for first enrollment
• status is optional for first enrollment
• If status is omitted on first enrollment, the account is enrolled as ACTIVE

Response Example: Returns the updated account object with FPSL status

{
    "id": "cd1045f5-c5dc-4204-a906-633ec96df05b",
    "account_number": "533888676",
    "status": "ACTIVE",
    
    "fpsl": {

        "US": {
            "status": "ACTIVE",
            "tier_id": "5cd4d4cf-fda9-4949-99d7-9e4a4613dc2d"
        }
    }
}

Step 3: Check FPSL Enrollment Status

IMPORTANT: Before engaging in this step, it is recommended to attempt Step 7 first using SSE requests. This specific method is more of a backup in case that you have issues with the SSE request option.

Endpoint: GET /v1/accounts/{account_id}
Purpose: Retrieve current FPSL enrollment status

Request Example:

curl --location 'https://broker-api.sandbox.alpaca.markets/v1/accounts/{account_id}' \
--header 'Authorization: Basic <your-credentials>'

FPSL Status Values:

Enrolled Account Snippet:

{
  "id": "4db36989-6565-4011-9126-39fe6b3d9bf6",
  "fpsl": {
    "US": {
      "status": "ACTIVE",
      "tier_id": "61e69015-8549-4bfd-b9c3-01e75843f47d"
    }
  }
}

Step 4: Modify FPSL Enrollment

Changing tier and opting out in the same call is rejected. Opting out mid-month does not forfeit interest already earned for days the shares were on loan. From the next business day, an opted-out account's shares are no longer offered, while any existing loan closes as the borrower returns the shares.

Change Tier Example:

curl --location --request PATCH 'https://broker-api.sandbox.alpaca.markets/v1/accounts/{account_id}' \
--header 'Content-Type: application/json' \
--header 'Authorization: Basic <your-credentials>' \
--data '{
    "fpsl": {
        "US": {
            "tier_id": "aab75b22-6ac7-48cd-883d-7313afd1afcd",
            "status": "ACTIVE"
        }
    }
}'

Un-Enroll Account Example:

curl --location --request PATCH 'https://broker-api.sandbox.alpaca.markets/v1/accounts/{account_id}' \
--header 'Content-Type: application/json' \
--header 'Authorization: Basic <your-credentials>' \
--data '{
    "fpsl": {
        "US": {
            "status": "INACTIVE"
        }
    }
}'

Re-Enroll Account Example:

curl --location --request PATCH 'https://broker-api.sandbox.alpaca.markets/v1/accounts/{account_id}' \
--header 'Content-Type: application/json' \
--header 'Authorization: Basic <your-credentials>' \
--data '{
    "fpsl": {
        "US": {
            "status": "ACTIVE"
        }
    }
}'

Note - If no tier_id is specified on re-enroll, the previously assigned tier is reused.

Step 5: Retrieve FPSL Loan Activities

Endpoint: GET /v1/fpsl/loans
Purpose: Get daily stock lending activities and interest information

Request Example:

curl --location 'https://broker-api.sandbox.alpaca.markets/v1/fpsl/loans?account_id={account_id}' \
--header 'Authorization: Basic <your-credentials>'

• interest may be omitted if interest has not yet been calculated for the loan
• updated_at may be present when loan values, including interest, have been adjusted

Query Parameters:

• page_token (optional): pagination token
• start (optional): inclusive start date in YYYY-MM-DD
• end (optional): exclusive end date in YYYY-MM-DD
• limit (optional): page size
• account_id (optional): filter by account
• recommendation: always pass account_id for reconciliation. If omitted, results may include all accounts visible to your API credentials

Default Date Behavior:

• start defaults to the first day of the current month
• end defaults to the day after the current date
• defaults use New York timezone logic

Response Structure:

{
  "loans": [
    {
      "date": "2024-07-11",
      "account_id": "cd1045f5-c5dc-4204-a906-633ec96df05b",
      "account_number": "533888676",
      "correspondent": "YOUR_CORRESPONDENT",
      "symbol": "AAPL",
      "quantity": 100,
      "market_value": 15000.00,
      "collateral": 15300.00,
      "updated_at": "2024-07-12T05:00:00.000000Z",
      "interest": {
        "customer": 2.50,
        "partner": 5.85
      }
    }
  ],
  "next_page_token": "{value_to_send_to_continue_paging}"
}

Step 6: Get Monthly FPSL Interest Activity

Endpoint: GET /v1/accounts/activities/INT
Purpose: Obtain the month end interest activity for FPSL

Request Example:

curl --location 'https://broker-api.sandbox.alpaca.markets/v1/accounts/activities/INT?account_id={account_id}' \
--header 'Authorization: Basic <your-credentials>'

Response Example:

{
  "id": "5ca8b9e6-cd56-48fa-99a7-ce1f5290f312",
  "qty": null,
  "price": null,
  "status": "executed",
  "symbol": "",
  "entry_type": "INT",
  "net_amount": 0.58,
  "description": "June 2024 Fully-Paid Securities Lending",
  "settle_date": "2024-06-28",
  "system_date": "2024-06-28",
  "entry_sub_type": "FPSL",
  "per_share_amount": null
}

Step 7: FPSL SSE events (optional)

Endpoint: GET /v1/events/accounts/status
Purpose: Retrieve the program status history for an account

Request Example:

curl --location 'https://broker-api.sandbox.alpaca.markets/v1/events/accounts/status?id={account_id}&since_ulid={since_ulid}' \
--header 'Authorization: Basic <your-credentials>' \
--header 'Accept: text/event-stream'

Response Example:

{
  "fpsl": {
    "US": {
      "status_from": "ACTIVE",
      "status_to": "INACTIVE"
    }
  },
  "account_id": "382dd20d-d627-4d9f-9c93-7e24cd340546",
  "account_number": "533888676",
  "at": "2024-06-11T19:00:00.000000Z",
  "event_ulid": "01J2VQMVJRMXQRPNS3831XFE1Y"
}

Other Information

• In sandbox, FPSL account status events are not emitted. During sandbox testing, validate status changes by polling GET /v1/accounts/{account_id}.

Please read Important Risk Disclosures With Respect To Participating In Fully Paid Securities Lending Transactions carefully before deciding whether to participate in lending Fully Paid Securities or agreeing to enter into a Master Securities Lending Agreement with Alpaca Securities LLC.

These disclosures describe important characteristics of, and risks associated with engaging in, securities-lending transactions.