Securities Lending

Agent Lenders, financial resource optimization, Securities Lending, topstory

ESG trends have shaped up to be a major opportunity for securities lending. While there’s little difference in the actual process of making a loan, agent lenders are starting to…

HKU Webinar: Passive Ownership and the Securities Lending Market, November 11, 2020

November 8, 2020

Asia, index funds, passive funds, Securities Lending

Speaker: Dr. Daniel Schmidt Associate Professor of Finance HEC School of Management Abstract: We exploit quasi-exogenous variation in passive ownership around the Russell 1000/2000 cutoff to explore the causal effects…

BNP Paribas opens agency seclending desk in Hong Kong as part of APAC expansion

November 7, 2020

APAC, BNP Paribas, Hong Kong, Securities Lending

BNP Paribas Securities announced it is expanding Market and Financing Services for clients in Asia Pacific, specifically by launching a new Agency Securities Lending Desk in Hong Kong. Located in…

ISLA and Stech’s Global Principles for Sustainable Securities Lending part ways

November 4, 2020

ESG, ISLA, Securities Lending

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 pleased to announce important changes…

Finadium Big Ideas Quarterly Q4 2020 now online

November 4, 2020

Derivatives, Securities Lending

Securities Lending, topstory

Our quarterly presentation on research, news and events. Continue reading

The Asset: Citi China completes securities lending trades under new QFII regime

November 2, 2020

China, Citi, Securities Lending

Citi China said on Monday (November 2) its direct custody and clearing (DCC) business has completed a series of securities lending transactions in the country’s A-share market as the custodian…

AllianzGI shutting down securities lending group

November 2, 2020

AllianzGI, Securities Lending

Securities Finance Monitor has confirmed that Allianz Global Investors (AllianzGI) will be shutting down its UK-based securities lending activities effective end of 2020. The group has been led by Rory…

DataLend publishes The Purple Issue 8: COVID edition

November 2, 2020

DataLend, Securities Lending, The Purple

The Purple Issue 8 is a special edition covering the COVID impact on the global securities finance industry, including: As COVID-19 Unfolds, These Securities Heat Up Short-Selling Bans Drive Down Revenue…

HSBC facilitates market-first securities lending transactions by an offshore investor in China

November 2, 2020

China, HSBC, Securities Lending

HSBC has successfully facilitated market-first securities lending transactions conducted by China Asset Management (Hong Kong) Limited (China AMC) in mainland China today. The two transactions completed on the Shanghai Stock…

Can securities lending pull itself out of its own revenue rut? (Premium)

November 2, 2020

CCP, Securities Lending

CCPs, Securities Lending, topstory

These are tough times for securities lending revenues, with agent lenders, pensions and mutual funds reporting multi-year volume lows and financial returns. Securities lending has always been a product that…

SFTR’s inclusion of buy-side data brings new trends and questions (Premium)

October 26, 2020

Europe, Regulatory

Europe, Repo, Securities Lending, SFTR, topstory

When dealing with SFTR data, its a good idea to look underneath the headlines for more information. The inclusion of buy-side data to SFTR Trade Repository reports last week was…

Is Eurex’s Lending CCP succeeding in expanding the size of the market?

October 22, 2020

CCP, Securities Lending

CCP, Eurex, Securities Lending, topstory

One industry objective of a securities lending CCP is to drive lender participation and increase the size of the overall market. By providing a known and consistent counterparty, as well…

SFM Magazine, Fall 2020, is now online

October 20, 2020

Blockchain, Collateral Management, Europe, Repo, Securities Lending, Technology

blockchain, CCP, collateral management, European Repo, leveraged mutual funds, Securities Lending, technology, topstory

Securities Lending, Technology

Securities Finance Monitor Magazine, Fall 2020, is now online. This digital-only special edition features articles on collateral optimization as a competitive weapon, the impact of SFTR on data analytics, Eurex’s…

The Hunt for the Algorithms to Automate Securities Lending

October 15, 2020

Darren Crowther

algorithmic trading, algorithms, Broadridge, Securities Lending, technology, topstory

Increasing the automation of securities finance and collateral management requires taking a joint technical and business perspective. Without it, firms could find themselves failing to progress or misdirecting IT investment.…

SFM Interview: how “smart buckets” differentiate as secfinance standardizes (Premium)

October 14, 2020

Artificial Intelligence, Securities Finance, Collateral and Derivatives, Securities Lending, Technology

artificial intelligence, counterparty risk, FIS, RWA, Securities Lending, smart buckets, standardization, topstory

Prevailing market trends mean that practitioners are under greater pressure than ever to work smarter as new regulations and technology emerge. One of the ways that’s taking shape in securities…

As asset managers consolidate, who wins and loses in securities lending? (Premium)

October 12, 2020

asset managers, Eaton Vance, Morgan Stanley, Securities Lending, topstory

Morgan Stanley is buying Eaton Vance. Nelson Peltz’s Trian has taken a 10% stake in Invesco and Janus Henderson and is encouraging both firms to look at merger options. The…

RMA: ESG-seclending coexistence inevitable, faces challenges

October 8, 2020

ESG, RMA, Securities Lending

A new survey of leading institutional investors released by The Risk Management Association (RMA) revealed that 95% of respondents believe that securities lending activities can coexist with Environmental, Social, and…

RMA publishes “Your First Run-In with Negative Interest Rates?”

October 6, 2020

negative rates, RMA, Securities Lending

A new RMA white paper highlights the issues the securities lending industry must address in the event of a negative interest rate policy in the U.S. “Your First Run-In with…

Solving a structural problem at beneficial owners for securities lending competitiveness (Premium)

October 5, 2020

CCP, Securities Lending

Beneficial Owners, boards, CCPs, Securities Lending, topstory

This relationship of securities lending to custody was once a strength, as beneficial owners could bundle the products and appreciate a reduction in their custody costs or event generate positive…

OCC seclending CCP volume down 3.6% in Sept 2020 year over year

October 2, 2020

CCP, OCC, Securities Lending

The average daily loan value at OCC in September 2020 was $73,148,880,384, a 3.6 percent decrease compared to September 2019. Securities lending CCP activity increased by 7.7 percent in new…

DataLend: lender-to-broker seclending down 17% to $1.77bn in Q3 yoy

October 1, 2020

DataLend, Equilend, Securities Lending

The global securities finance industry generated $1.77 billion in revenue in the lender-to-broker market in the third quarter of 2020, according to DataLend, the market data division of EquiLend. This…

Preview: webinar on UMR and Securities Finance on 06 October (Premium)

September 28, 2020

Derivatives, Repo, Securities Lending

Eurex, Natixis, Securities Lending, topstory, UMR, Webinar

We are looking forward to our 06 October webinar on uncleared margin rules (UMR) and securities finance, produced with Eurex and Natixis and featuring speakers from MN and Citi. This…

ESMA proposes information sharing to prevent Cum/Ex, Cum/Cum and withholding tax schemes

September 25, 2020

cum-cum, Cum-ex, ESMA, Europe, Securities Lending, taxation, withholding tax

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, yesterday published the Final Report on its inquiry into Cum/Ex, Cum/Cum and withholding tax (WHT) reclaim schemes. ESMA’s…

SCOOS dealer survey Sept 2020 shows funding terms easing for high-yield corporate bonds and consumer asset-backed securities

September 24, 2020

Federal Reserve, SCOOS, Securities Lending

The September 2020 Senior Credit Officer Opinion Survey on Dealer Financing Terms collected qualitative information on changes in credit terms and conditions in securities financing and over-the-counter (OTC) derivatives markets.…

ISLA comments on seclending impacts from EC’s CMU action plan

September 24, 2020

European Commission, ISLA, Securities Lending

The European Commission has formally published the Capital Markets Union Action Plan, detailing key priorities and legislative initiatives on capital markets to 2023. Amongst those, and of notable relevance to the…

A consultant user’s view of ISLA’s new Securities Lending Performance Measurement guidance (Premium)

September 17, 2020

ISLA, performance measurement, Securities Lending, topstory

ISLA kindly provided us a review copy of “Securities Lending Performance Measurement,” a new guidance issued last week by the Securities Lending Performance Measurement Working Group. We reviewed the specifics…

Finadium, Eurex and Natixis to host webinar on UMR and securities finance on 6 October

September 9, 2020

Derivatives, Regulatory, Repo, Securities Lending

Repo, Securities Lending, topstory, UMR

Finadium subscribers and friends of Natixis and Eurex are invited to attend a discussion on Uncleared Margin Rules and their impact on the securities finance market, including repo and securities…

Who benefits from growth in peer to peer securities lending revenues (Premium)

September 8, 2020

peer to peer, Securities Lending, topstory

The Global Peer Financing Association (GPFA) added three members last week in its effort to build a robust peer to peer securities lending framework. There is plenty of logic to…

ISLA publishes industry guidance for securities lending performance measurement

September 7, 2020

ISLA, performance measurement, Securities Lending

ISLA announced the publication of a new set of standards and best practice guidelines in respect of data aggregation and calibration of performance-related metrics for securities lending. The standards set out…

Doors open for international access to China’s huge securities finance markets

September 3, 2020

China, Custodians, Repo, Securities Lending

Blackrock, China, Citi, Custody, JP Morgan Asset Management, Repo, Securities Lending, topstory

China’s securities markets are enormous, at over US$23 trillion in bonds and equities, and so is its repo and securities finance business. New rules allowing international firms to apply for…

OCC securities lending CCP volume down 4.3% in August 2020 year over year

September 1, 2020

CCP, OCC, Securities Lending

The average daily loan value at OCC in August 2020 was $68,733,295,322, a 10.5 percent decrease compared to August 2019. Securities lending CCP activity decreased by 4.3 percent in new…

ISLA publishes 13th Securities Lending Market Report

August 24, 2020

ISLA, Securities Lending

Set against the backdrop of the ongoing COVID-19 pandemic, this special report highlights how our markets reacted, recovered and renewed themselves during the extraordinary events that dominated the first half…

Collateral policy and fee splits as key choices for US pensions in securities lending

August 18, 2020

Neal Mahoney

Securities Lending, topstory, US, US pensions

In their securities lending operations, US public pensions plans offer a massive pool of funding from some of the largest institutional investors. A group of 96 US pensions analyzed by…

Finadium: US Pension Plans in Securities Lending: A Corporate Governance Perspective

August 18, 2020

Securities Lending, topstory, US pensions

A new report from Finadium examines the securities lending revenues and expenses of US public pension plans in the context of corporate governance. Continue reading

Finadium: Leverage Ratios, SA-CCR and Securities Finance: The New Regulatory Costs of Business

August 11, 2020

Derivatives, Repo, Securities Lending

Basel III, Basel IV, OTC derivatives, Repo, securities finance transactions, Securities Lending, topstory

The cost of balance sheet from different types of financial transactions that have a similar economic impacts drives how business gets done. In this report, Finadium delves into the Leverage…

Finadium Big Ideas Quarterly Q3 2020 now online

August 4, 2020

Collateral Management, Securities Lending

collateral management ESG, ETFs, mutual funds, Securities Lending, topstory

Our quarterly presentation on research, news and events. Continue reading

OCC seclending volumes down 9.7% in July 2020 year over year

August 4, 2020

OCC, Securities Lending, Securities Lending CCPs

The average daily loan value at OCC in July 2020 was $65,959,824,819, a 9.7% decrease compared to July 2019. Securities lending CCP activity increased by 2.8% in new loans from…

UK FCA warns firms on inappropriate use of title transfer collateral arrangements

July 30, 2020

collateral, FCA, Securities Lending, title transfer

We are sending this letter to you and other FCA-authorised firms acting as brokers in wholesale financial markets, who currently, or may in the future, offer services (including clearing broker…

Tel Aviv bourse to go live with seclending blockchain in November

July 28, 2020

blockchain, DLT, Securities Lending, Tel Aviv Stock Exchagne

The Tel-Aviv Stock Exchange (TASE) announced the launch of its Central Blockchain Securities Lending Platform, which will be the first of its kind in Israel. It’s expected to boost direct lending…

Four pensions lead creation of Global Peer Financing Association (GPFA)

July 23, 2020

peer to peer, Securities Lending

Four leading pension plans, California Public Employees’ Retirement System (CalPERS), Healthcare of Ontario Pension Plan (HOOPP), Ohio Public Employees Retirement System (OPERS), and State of Wisconsin Investment Board (SWIB) along…

Can securities lending now talk about “Best Execution” for real? (Premium)

July 21, 2020

Best Execution, Securities Lending, topstory

A vendor recently advocated that their data on securities lending would be appropriate for defining best execution. That presumes that the industry and regulators get behind one rate for everyone…

Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

July 15, 2020

SEC, Securities Lending, Webinars

ETFs, mutual funds, sec, Securities Lending, topstory, US

Finadium presented our analysis of US mutual fund and ETF fund filings in securities lending for calendar year 2019, covering annual reports, Statements of Additional Information, and forms N-CEN and…

Finadium report and webinar: Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

July 14, 2020

ETFs, Finadium, mutual funds, Securities Lending, topstory

Finadium has released a full analysis of US mutual fund and ETF securities lending revenue and expense data for calendar year 2019. This analysis discloses a complex level of expenses…

Research paper: German mutual funds benefit from information in securities lending market

July 13, 2020

Securities Lending and Information Acquisition Stefan Greppmair, University of Mannheim – Finance Area Stephan Jank, Deutsche Bundesbank; University of Cologne – Centre for Financial Research (CFR) Pedro A. C. Saffi,…

DataLend: global seclending revenue down to $3.9bn in H1 2020, Americas buck downtrend

July 2, 2020

DataLend, revenues, Securities Lending

The global securities finance industry generated $3.89 billion in revenue for lenders in the first six months of 2020, according to DataLend, the market data division of fintech EquiLend. The…

Client Webinar July 15: Revenues and Expenses of US Mutual Funds and ETFs in Securities Lending

June 30, 2020

ETFs, Investments, Securities Lending

ETFs, mutual funds, Securities Lending, topstory, US

July 15, 2020 10AM New York 3PM London 4PM Paris/Frankfurt This Finadium client webinar will present our analysis of US mutual fund and ETF fund filings in securities lending for…

Looking for better market information? Finadium runs 3-6 months ahead of the news cycle

June 30, 2020

Central banks, Collateral Management, Prime Brokerage, Repo, Securities Lending

BNPP, Central Bank Digital Currencies, Central Banks, Deutsche Bank, Prime Brokerage, SA-CCR, Securities Lending, topstory

Finadium content often runs three to six months ahead of the popular news cycle. Here’s what we’ve published for clients lately and here’s what we’ve seen months later. Continue reading

P&I: Lothian adopts automatic recall of stock for annual meeting votes

June 12, 2020

Lothian, Securities Lending, voting

Lothian Pension Fund, Edinburgh, will automatically recall shares out on loan so fund executives can vote the entire holding of any stock at annual general meetings. The £8 billion ($9.9…

Negative leaning WSJ article on securities lending vs. shareholder voting

June 10, 2020

Securities Lending, shareholders, voting, WSJ