The Future of the Securities Lending Market: On the Cusp of Transformation
ISLA and Linklaters
Work on both the Common Domain Model (CDM) and the ISLA Clause Library & Taxonomy has now progressed to a point where member firms can see opportunities for application. Within,
you will find discussions of how trade negotiation workflow can be standardised, increasing interoperability; of how a digitised version of the ISLA Clause Library could assist in automation; and of how these pieces could ultimately be used as building blocks for smart contracts on blockchain ecosystems created by our members. Additionally, the creation of a Master Confirmation Agreement (MCA), streamlining structured trade negotiation, also discussed in this paper, has provided the methodology to model evergreen and extendible trades within the CDM, showing how market best practice can successfully interlace with technical standards.
The full paper is available at https://www.islaemea.org/wp-content/uploads/2022/10/ISLA_Future_of_the_Securities_Lending_Market_On_the_Cusp_of_Transformation.pdf