ISLA released a paper, Best Practice for Operational Processes for Securities Lending Transactions, which aims to provide a practical and standardized approach to the operational processes of securities lending activity undertaken under the ISLA-produced Global Master Lending Agreement (GMSLA). It is intended to be read and applied in conjunction with the Bank of England’s (BoE) UK Money Markets Code which was published on 26 April 2017.
“Under the directions and guidance of both the FCA and the BoE’s UK Money Markets Code, ISLA have worked collectively to produce what we now consider an industry standard document that provides a defined roadmap on how member organizations should conduct their securities lending post trade activities,” ISLA said in a statement.
The paper provides high-level principles of conduct, and a day-to-day guide to processes and procedures. It aims to assist the market in the adoption of a clear set of practices that treat all parties to the transactions in a fair and equitable manner, while providing clarity in managing disputes and disagreements. It will be subject to updates as the market environment changes with regulation and innovation.
“ISLA recognizes that standardized processes are critical to the future stability of the securities lending market and with a unified membership approach, the market will be better placed to embrace both innovation and regulatory enforced change. It also enables us to assure regulators that we as an industry can achieve and maintain a robust, sustainable marketplace for business,” the organization wrote.
The paper is restricted to ISLA membership, find out more.