Linklaters and the International Securities Lending Association (ISLA) have signed a memorandum of understanding (MOU) to automate the Global Master Securities Lending Agreement (GMSLA), the GMSLA Security Interest 2018 (Pledge) the recently published Master Confirmation Annex ‘MCA) and related documents on the CreateiQ contract automaton platform.
Subscribing ISLA members will be able to access a digitized version of the ISLA Clause Library on CreateiQ. Linklaters advised ISLA on the MCA, which provides a standard framework and set of terms which market participants can use for “non-standard” trade types to be documented under the GMSLA.
CreateiQ is the contract management platform developed by Linklaters. The platform dramatically reduces the time to draft and agree documents, while creating and providing real time access to contractual data in structured format. The move to help firms negotiate their securities lending documents on CreateiQ comes as the platform is experiencing rapid growth, with over 200 institutions now using the platform in the financial industry – including 6 of the 10 largest banks by assets.
The International Swaps and Derivatives Association (ISDA) and Linklaters have previously collaborated to digitize ISDA documents on CreateiQ through ISDA Create. The Bank of New York Mellon also chose the platform to publish its key custodial documentation, including its triparty and third-party account control agreements. The MOU to add ISLA’s documents continues to build on that foundation and now gives market participants the opportunity to digitize their broader trading documents, including any own account documents, on a single platform.
Deepak Sitlani, CreateiQ board member and Capital Markets Partner at Linklaters London, said in a statement: “We are very excited to work with ISLA on this first of its kind automation for securities lending negotiations, which will bring enormous efficiencies to banks and asset managers. This is a very significant step towards our goal of becoming the comprehensive contracting solution in financial markets.”
This launch is one of several forward-thinking initiatives that ISLA is undertaking to help its members quickly and efficiently adapt to the growing impact that technology is having on securities lending. Others include the creation of a clause library, collaborating with ISDA and ICMA on the development of a Common Domain Model and providing guidance to members on new digital assets including cryptocurrency and non-fungible tokens.
Andrew Dyson, CEO of ISLA, said in a statement: “We are delighted to work with Linklaters to develop a digital version of the GMSLA and our other related documents on CreateiQ. One of the biggest challenges for our members is negotiating these documents efficiently and at scale and are pleased that they will now be able to benefit from all the functionality the platform has to offer.”