The Securities and Exchange Commission should scrutinise the securities lending market and revisit who gets to invest in private markets, industry watchers have said during a hearing with the US House Committee on Financial Services.
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The securities lending market is more transparent than it is given credit for, said Josh Galper, managing principal at Finadium, a research and advisory company.
Disclosures about fund [securities lending] practices range from fully transparent to moderately transparent, reflecting the different levels of regulation that firms are subject to,” he said in an email. “I often find that people who call for greater transparency are mixing concepts such as securities lending, short selling, corporate ownership and payment for order flow.”
Increased transparency around securities lending would not have had an impact on the GameStop-fuelled volatility, he added.
The full article is available at https://www.ft.com/content/964c21aa-de5d-401b-a6c6-ba32d3b0c912