Securities Lending

For more than a decade, brokers on the leading edge of Fully Paid Lending (FPL) have worked hard to educate investors on the value of FPL in order to convince…

NYT article on fund pricing, negative fees and securities lending

April 8, 2019

fidelity, mutual funds, negative fees, New York Times, Securities Lending, Vanguard

A Price War Has Driven Fund Fees to Zero. They May Be Set to Drop Further. Investment fees have dropped so low that you may have assumed they have gone…

Finadium launches enhanced analytics for US mutual funds and ETFs in securities lending; invites beta testers for online access

April 8, 2019

ETFs, Investments, Securities Lending, Technology

ETFs, Finadium, mutual funds, Securities Lending, topstory

Finadium has created an enhanced database of US mutual funds and ETFs in securities lending that incorporates SEC filings and additional industry content. The database provides clients a comprehensive analysis…

Fidelity Investments adds affiliate National Financial Services as agent lender

April 6, 2019

fidelity, Securities Lending

Q&A: NEW SECURITIES LENDING AGENT FOR THE FIDELITY FUNDS Q1: I understand you are making some changes to your securities lending program? What can you tell me? A: That’s correct.…

Finadium securities lending conference in NYC May 2-3 spotlights asset manager, hedge fund, bank and vendor experts

April 3, 2019

FISL, FISL NYC 2019, Securities Lending, topstory

The 3rd annual Finadium Investors in Securities Lending (FISL) conference arrives in New York on May 2-3. The agenda is nearly set, and features a wide range of asset managers,…

Canada tightens rules on dividends withholding tax in a securities lending arrangement

April 1, 2019

Canada, Securities Lending

Generally, when a person borrows a share, he or she is obligated to make payments to the lender as compensation for any dividends paid on the share until such time…

Options Clearing Corp seclending CCP volume down 0.5% in March 2019 year over year

April 1, 2019

CCP, OCC, Securities Lending

OCC’s securities lending CCP activity was down 0.5 percent in new loans from March 2018 with 117,521 transactions last month. Year-to-date stock loan activity decreased 2.5 percent from 2018 with…

Emerging markets are building out securities lending. Will investors show up?

April 1, 2019

Market infrastructure, Securities Lending

BVL, Emerging Markets, Securities Lending, topstory, WFE

The World Federation of Exchanges called for it. Emerging markets are doing it. But will investors engage in it? This is the question for build-outs of securities lending platforms in…

Bolsa de Valores de Lima Offers New Securities Lending Platform

March 29, 2019

BVL, Peru, Securities Lending

TORONTO and LIMA, Mar 28, 2019 (Canada NewsWire via COMTEX) — Enhanced Securities Lending Platform enables non-Peruvian investors to borrow and lend securities in Peru and make available an additional…

OCC’s Matt Wolfe expects more machine learning and distributed ledger technology in securities lending

March 27, 2019

Options Clearing Corp, Securities Lending

What Does the Future Hold for Securities Lending? By Matt Wolfe, OCC Vice President of Business Development March 25, 2019 Matt WolfeStrong personal relationships have always been a cornerstone of…

ASIFMA asks for improvements in China’s securities lending rules

March 21, 2019

ASIFMA, Securities Lending

ASIFMA commented on securities lending in China in the report, “Foreign Institutional Investment in China: An Asset Management Perspective,” March 2019 We understand that China’s move to a T+2 settlement…

Does securities lending matter for Salt Financial’s negative fee ETF?

March 20, 2019

ETFs, Securities Lending

ETF, Salt Financial, Securities Lending, topstory

We wondered about Bloomberg and Axios reports on Salt Financial, an ETF manager that has proposed paying a negative fee to investors (paying investors to hold the ETF). Axios suggest…

Big news for the Finadium Investors in Securities Lending Conference in New York, May 2-3 2019

March 13, 2019

collateral management, FISL NYC 2019, Securities Lending, topstory

Registrations are coming in fast for the May 2-3 Finadium Investors in Securities Lending (FISL) Conference in New York and the agenda has taken some innovative turns. This won’t be…

Securities Lending 101 webinar replay and slides (Premium)

March 12, 2019

Collateral, Securities Lending

Finadium, Securities Lending, topstory, Webinar

Finadium clients can access the webinar play and slides here. Continue reading

Evidence that short selling does not harm equity prices

March 12, 2019

Securities Lending, Short selling, stock prices, topstory

We heard twice recently the old concern from portfolio managers that allowing securities lending in their portfolios for short selling damages the value of the equities in their portfolio. As…

ISLA Publishes 10th Edition of the Securities Lending Market Report

March 6, 2019

ISLA, Market Report, Securities Lending

We are delighted to announce the release of the 10th Edition of the ISLA Securities Lending Market Report. The report continues to delve into how securities lending markets are behaving…

An argument that more PB internalization will lead to more direct securities lending (Premium)

March 5, 2019

CCP, Hedge Funds, Securities Lending

Beneficial Owners, CCPs, direct lending, hedge funds, Securities Lending, topstory

If prime brokers continue to internalize more effectively, plus expand further into synthetics, there is an argument to be made that more beneficial owners will actively consider direct securities lending…

OCC seclending CCP volume down 5.5% in Feb 2019 year over year

March 1, 2019

CCP, OCC, Securities Lending

OCC’s securities lending CCP activity was down 5.5 percent in new loans from February 2018 with 105,993 transactions last month. Year-to-date stock loan activity decreased 3.5 percent from 2018 with…

We propose a template for US pension plan securities lending reporting

February 28, 2019

Securities Lending, US

Securities Lending, topstory, US pensions

Following the release of our statistical analysis of US pension plans, we offer a template for US pension reporting of their securities lending programs that would add value to both…

Finadium: US Pension Plans in Securities Lending

February 27, 2019

Pension Management, Securities Lending

pensions, Securities Lending, topstory, US

Finadium presents the collected data of 78 US pension securities lending programs including most of the largest US state, county and city funds. Our analysis covers revenues, fee splits, collateral…

ISLA publishes CSDR: Settlement Discipline Impact to Securities Lending

February 26, 2019

CSDR, ISLA, Securities Lending

ISLA is delighted to publish CSDR:Settlement Discipline Impact to Securities Lending, which investigates CSD Regulation (EU)No 909/2014 and its impact on settlement disciplines from the perspective of Securities Lending activity. The…

Federal Reserve paper shows securities lending benefits to OTC market liquidity

February 21, 2019

Corporate Bonds, Federal Reserve, Securities Lending

Corporate Bonds, Federal Reserve, Liquidity, Securities Lending, topstory

In a strong validation for the role of securities lending in capital markets, a Federal Reserve working paper has documented that securities lending is a direct contributor to market liquidity.…

US mutual fund and ETF seclending data causing trouble already (Premium)

February 14, 2019

ETF, mutual fund, sec, Securities Lending, topstory

The US Securities and Exchange Commission meant well when it mandated that all US closed end and open end mutual funds, and ETFs and Variable Annuities, report their securities lending…

Finadium training: Securities Lending 101 client webinar, March 5, 2019

February 12, 2019

Securities Lending, topstory

Finadium will present an online training session for our clients: Securities Lending 101 will run on Tuesday March 5, 2019 at 10AM EST / 3PM GMT / 11PM HKT. We are…

Finadium Big Ideas Quarterly Q1 2019 now online

February 7, 2019

BOCT, events, FISL NYC, Repo, Securities Lending, topstory

Our quarterly presentation on research, news and events. Finadium Securities Finance, Collateral and Derivatives subscription clients can log in and download the presentation here. If you are already logged in,…

OCC seclending CCP down 1.5% in Jan 2019 year over year

February 1, 2019

OCC, Options Clearing Corp, Securities Lending

OCC’s securities lending CCP activity was down 1.5 percent in new loans from January 2018 with 114,940 transactions last month. The average daily loan value at OCC in January 2019…

Bloomberg dips its toe into securities lending and repo trading (Premium)

January 31, 2019

CCP, Repo, Technology

Bloomberg, Repo, Securities Lending, topstory

With some nice looking black and white brochures and client meetings at the end of 2018, Bloomberg is telling the market that it will offer securities lending and repo trading…

Review: RMA and EquiLend’s LatAm guide

January 30, 2019

Collateral Management, Securities Lending

collateral, Equilend, Latin America, Repo, RMA, Securities Lending, topstory

RMA and EquiLend have produced a new report on the Latin American securities lending market, “Latin American Securities Finance User Guide 2019.” There’s a lot to appreciate in this piece…

Six banks onboarding HQLAx/Deutsche Börse seclending blockchain

January 29, 2019

Anna Reitman

News and Notes – Fintech

blockchain, Deutsche Borse, HQLAx, Securities Lending

Deutsche Börse and HQLAx have reported significant progress on blockchain securities lending solution, with six banks already started onboarding. In March 2018, Deutsche Börse Group and HQLAX announced a cooperation…

The value of a new securities lending volatility indicator (Premium)

January 21, 2019

Big Data, Securities Lending

Benzinga, FIS Astec, Securities Lending, Tidal Markets, topstory, VIX, volatility indicators

A new securities lending volatility indicator has hit the market, this time from Benzinga and Tidal Markets. We review the idea, the market and the competitive landscape. Continue reading

Benzinga and Tidal Markets announce launch of a securities lending volatility indicator

January 20, 2019

Benzinga, Securities Lending, Tidal Markets

Benzinga announced today that it will be teaming up with Tidal Markets, a volatility data provider, to deliver the Securities Lending Volatility Indicator (SLVX). This new product forecasts market volatility…

Bank of England SecLending Committee considers market impact of CSDR

January 20, 2019

Bank of England, CSDR, Securities Lending

Minutes Securities Lending Committee 20 November 2018 The FCA provided some background and update on the current position with regard to the introduction of CSDR. ICMA presented to the Committee…

BofE Securities Lending Committee discussion on technology – September 2018

January 19, 2019

News and Notes, News and Notes – Fintech

Bank of England, HQLAx, Securities Lending, technology, TradingApps, Wematch

Minutes Securities Lending Committee 24 September 2018 2. Presentation from HQLAX The intention of HQLAX is to remove the need for settlement of the collateral itself in a transaction. HQLAX…

Five predictions for securities lending for 2019 (Premium)

January 14, 2019

CCP, Derivatives, Securities Lending

CCPs, Securities Lending, SFTR, topstory, Total Return Futures, Total Return Swaps

2018 was a good year for securities lending both financially and in the evolution of the business. 2019 promises to offer more interesting times. We offer our predictions for market…

ETF.com: Get Ready For Zero Fee ETFs

January 5, 2019

ETFs, Securities Lending

A flat U.S. stock market and losses in the U.S. bond and most international markets mask what has been another impressive year for ETF inflows of approximately $280 billion as…

DataLend: Securities Finance Industry Generated $9.96 Billion in Revenue in 2018

January 3, 2019

DataLend, Securities Lending

NEW YORK (January 3, 2019)—The global securities finance industry generated just under $9.96 billion in revenue for lenders in 2018, according to market data provider DataLend. It was a record…

Why US banks are getting fined for ADR violations (Premium)

January 3, 2019

Securities Lending, Tax

ADRs, pre-release, sec, Securities Lending, topstory

The US SEC fined J.P. Morgan last week $135 million for “improper handling of ADRs”, following a $54 million fine against BNY Mellon earlier in the month. The SEC has…

OCC seclending CCP activity up 3.9% in Dec 2018 year over year

January 2, 2019

OCC, Options Clearing Corporation, Securities Lending

OCC’s securities lending CCP activity was up 3.9 percent in new loans from December 2017 with 107,214 transactions last month. For the year, stock loan activity increased 17.2 percent from…

The latest ICMA/GFMA repo report is a new call to regulators. Will they listen?

December 20, 2018

Repo, Securities Lending

GFMA, ICMA, Repo, Securities Lending, SFTs, topstory

The report released this week by ICMA and GFMA on the repo markets is a whopper – at 84 pages, it reads like a short book on the current state…

BNYM purchase of Trading Apps expands on two important agency lending trends (Premium)

December 17, 2018

Securities Lending, Technology

BNYM, Securities Lending, topstory, Trading Apps

BNYM has taken the interesting step of acquiring the agency lending assets of Trading Apps (TA), one of the industry’s more innovative technology players. Having built out their platform using…

Euroclear: Asset Managers making securities lending mainstream

December 13, 2018

Euroclear, Securities Lending

While the global securities lending market all but closed in the aftermath of the global financial crisis, the past decade has seen it come back strongly. But according to buy-side…

Morningstar says benefits of securities lending to fundholders outweigh the risks

December 12, 2018

Morningstar, Securities Lending

Securities Lending: An Examination of the Risks and Rewards By Adam McCullough | 11 December 2018 Securities lending carries risk, but the risk entailed today is less than in the past. Increased…

Are fiduciaries risking litigation by not electing scrip dividends or rights issues? (Premium)

December 11, 2018

Corporate actions, Securities Lending

berkeley consulting group, corporate actions, greenberg traurig, rights issues, scorpeo, scrip dividends, Securities Lending, topstory

A new white paper by a lawyer and a consultant on behalf of Scorpeo, a corporate actions consultancy, argues that asset holders that do not optimize scrip dividends and rights…

What we learned at yesterday’s securities finance event in Zurich (Premium)

December 6, 2018

Europe, Repo, Securities Lending, Total Return Swaps

events, Finadium, Securities Lending, SFTR, topstory, Zurich

That was really interesting. We held our fifth annual securities lending and repo update yesterday in Zurich. Discussion centered on SFTR and the evolution of the securities finance business in…

World Federation of Exchanges report finds securities lending helpful to draw investors to emerging markets

December 5, 2018

Securities Lending, World Federation of Exchanges

What attracts international investors to emerging markets? World Federation of Exchanges December 2018 The only market structure feature found to be positively associated with international invest- ment is the introduction…

OCC seclending CCP up 4.2% in Nov 2018 year over year

December 3, 2018

OCC, Options Clearing Corporation, Securities Lending

Securities Lending: OCC’s securities lending CCP activity was up 4.2 percent in new loans from November 2017 with 111,814 transactions last month. Year-to-date stock loan activity increased 18.5 percent from…

The ECB finds risk in ETF securities lending and TRS – is this real or a rehash of old stories?

December 3, 2018

ECB, ETFs, Securities Lending, Total Return Swaps

ECB, ETFs, Securities Lending, topstory, Total Return Swaps

News and Notes, News and Notes – Fintech

The European Central Bank released their Financial Stability Report last week, including a feature on counterparty risk in synthetic and physical ETFs. We find some valid points in the analysis…

State Street survey shows execution tech, seclending are SWF priorities

November 19, 2018

Anna Reitman

IFSWF, Securities Lending, State Street

State Street and the International Forum of Sovereign Wealth Funds (IFSWF) released a research paper, Enhanced Asset Utilization to Improve Portfolio Returns. According to the research, one-half of surveyed respondents…

Finadium: 2018 Survey of Institutional Investors in Securities Finance

November 15, 2018

Collateral Management, Investments, Securities Lending

collateral management, Finadium, Institutional Investors, Repo, Securities Lending, topstory