Securities lending remains an important part of a diversified portfolio strategy and can be a powerful revenue driver. Securities lending is often associated with trading strategies that rely on short selling, a sometimes controversial and polarizing market activity that is based on the expectation that the price of a security will drop. [RBC, 2021]

1. Discuss the security lending process for short selling. [10 marks]
2. Explain on how the short buyers deal with naked shorting in short selling.

[5 marks]

Evaluate any TWO (2) other trading roles in investment banking apart from the one discuss in the statement.