SunGard has released a new white paper, “The potential benefits of regulatory and market change for securities lending.” From the introduction:
“Much of the macro analysis and commentary surrounding securities lending in recent years has tended to focus, with reason, on a myriad of headwinds facing this industry. We ourselves have looked at the potential impact of legislation and regulatory changes, most notably Basel III, and its likely impact on the securities lending market.”
“With all these concerns and potential hurdles, it is perhaps easy then to overlook the other, more positive developments and market changes that might actually benefit the industry. Indeed some of the legislation that has caused so much concern may also offer benefits. In this paper, some of these influences will be studied and the impact they may have on our market will be considered; whether that be overall growth, improved efficiency or better revenues. This isn’t to say the upside will outweigh the negative factors we need to consider, but at least can offer some hope that it may not all be doom and gloom.”
We draw attention in particular to this important point that will be discussed at IMN’s Beneficial Owners Conference in London on Sept 16-17: “Although a somewhat subjective argument that fewer market participants, if they have greater efficiency, could perhaps be equally beneficial as a larger numbers of participants with lower efficiency, it is certainly a question worth asking.”
The full paper is available here (free registration required).