ISLA represents the common interests of the securities lending and financing industry in Europe and beyond. With 45% of its membership based in the EU27, and its other members committed to the development of a vibrant EU (European Union) capital markets, the Association is outlining its views and recommendations on the design of an EU financial services framework that enables securities lending to play an integral part in supporting the development of stronger, more autonomous capital markets in Europe.
The agenda provides a viable framework and aims at further discussion with regulators and policy makers, as the new European Commission and Parliament formulate their agenda for the coming 5 years.
Five priorities are identified:
- grow the supply of securities within CMU27;
- empower investors and stimulate good corporate governance to support the sustainable finance agenda;
- address data issues in SFTR implementation to get the full potential systemic risk picture;
- adjust CSDR to ensure optimal settlement discipline that supports market liquidity; and
- ensure further upcoming potential mandatory haircuts on SFTs are fit for purpose and fully informed by complete datasets on SFT markets.