ISLA: Securities Lending MVP Merged into the CDM

The International Securities Lending Association (ISLA), a leading industry trade association representing the common interests of securities lending and financing market participants across EMEA, is delighted to announce the completion of the second phase of the association-led development of the Common Domain Model (CDM) for securities lending products.

In conjunction with our partners REGnosys, our members, and in close collaboration with ISDA and ICMA, a minimum viable product (MVP) for securities lending has been contributed into the CDM.

In less than one year since ISLA began development work on the CDM for securities lending, there is now a publicly available model in which a securities loan can be:

• Defined transactionally;
• Associated with a collateral schedule (cash or non-cash);
• Executed, allocated and settled;
• Re-allocated pre or post-settlement;
• Returned (in part or in full);
• Billed for, including the above events.

In addition, ISLA’s CDM Working Group, comprising some 35 member firms, has made major contributions and enhancements to the extensive foundations laid by ISDA, including enhancements to the allocation function, the ability to associate more than one legal agreement with a transaction, updates to the transfer function critical for physical settlement, and the very first concept of a bill within the CDM.

ISLA’s 2020 pilot development work, contributed to the core CDM earlier this year, in turn provided an accelerated foundation for ICMA to begin their repo contributions in earnest. Fruits of that work are expected to be seen in the coming weeks. In comparison to that pilot work, this contribution of an MVP securities loan is 3 times the size, adding over 1000 lines of code, and impacting 11 functional model components.

Read the full press release, including what our Members & Partners think, here.

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