Securities Lending

Investments, Securities Lending, Technology

ESG, Finadium, Securities Lending, topstory

Environmental, social and governance (ESG) investment funds are on the rise, and with them the importance of these funds in securities lending. Using newly collected data, we document the securities…

Beyond Meat (BYND) highlights dysfunction in securities finance pricing (Premium)

June 12, 2019

Hedge Funds, Investments, Securities Lending

BYND, hedge funds, Securities Lending, topstory

Supply and demand are fair play, but securities lending rates as high as 650% 700% for Beyond Meat (BYND) securities are a trade that only a fool – or a trader…

OCC seclending CCP up 0.3% in May 2019 year over year

June 3, 2019

CCP, OCC, Securities Lending

OCC’s securities lending CCP activity was up 0.3 percent in new loans from May 2018 with 119,589 transactions last month. Year-to-date stock loan activity decreased 1.7 percent from 2018 with…

A methodology for measuring the impact of fund fees in securities lending using public data (Premium)

June 3, 2019

Agent Lenders, mutual funds, performance, Securities Lending, topstory

For US mutual funds and ETFs, much has been made of Statements of Additional Information (SAI) data showing what percent each complex returns of its securities lending revenue to its…

ISF: emerging tech in Canada’s seclending industry

June 1, 2019

News and Notes – Fintech

Canada, CASLA, distributed ledger technology, machine learning, RBC, Securities Lending

In an interview with Global Investor, Donato D’Eramo, president at the Canadian Securities Lending Association (CASLA) and managing director and global head, securities finance at RBC Investor & Treasury Services,…

Plans for our institutional investor securities lending conference in Paris, 24 September 2019

May 29, 2019

Europe, Securities Lending

FISL Paris, Institutional Investors, Securities Lending, SFTR, topstory

We’re gearing up to host our Finadium Investors in Securities Lending (FISL) conference in Paris on 24 September 2019, moving to the Continent after two years in London. Here’s how…

DataLend: firms active in Japan seclending embracing tech “more than ever”

May 23, 2019

News and Notes – Fintech

DataLend, Japan, Securities Lending, The Purple

In its latest issue of The Purple, DataLend profiled securities lending in Japan. As Japan enters the “Reiwa” Era, it continues to be a powerhouse in the Asia region from…

FISL NYC 2019: changes in non-cash collateral and cash reinvestments (Premium)

May 22, 2019

Collateral, Collateral Management, Securities Lending, topstory

data analytics, FISL NYC 2019, non-cash collateral, Rehypothecation, Securities Lending, SFTR, topstory

It’s not surprising that non-cash collateral was a theme across panels at our annual Investors in Securities Lending conference. Here’s what was said. Continue reading

New paper from Fed researchers finds concrete link between securities lending, trade volumes and price discovery

May 20, 2019

Corporate Bonds, Federal Reserve, Liquidity Management, Securities Lending

Corporate Bonds, Federal Reserve, insurance companies, Securities Lending, topstory

“We provide compelling evidence that the corporate bonds held by more risk tolerant insurance companies with securities lending programs tend to have greater spot market trade volume and more price…

Central Bank of Ireland’s Kincaid: Towards Greater Transparency in Securities Lending

May 18, 2019

Central Bank of Ireland, Securities Lending, Transparency

Towards Greater Transparency in Securities Lending – Colm Kincaid, Director of Securities and Markets Supervision 15 May 2019 Opening Remarks to the International Securities Lending Association (ISLA) Morning Briefing Good…

Benchmarking US cash collateral management fees in securities lending (Premium)

May 15, 2019

Collateral Management, Securities Lending

Cash collateral management fees, Securities Lending, topstory

Now that our database of US mutual funds and ETFs in securities lending is up and running, we’re starting to do some analysis. First up: we benchmark cash collateral management…

Bloomberg: Fidelity brings securities lending in-house

May 15, 2019

fidelity, Goldman Sachs, Securities Lending

Fidelity Investments is cutting out its middleman, Goldman Sachs, when dealing with Wall Street short sellers. The money manager is bringing its stock-lending business in-house, according to a March 29…

We review the Better Finance report criticizing EU asset manager seclending fee splits (Premium)

May 13, 2019

ESMA, ETFs, Europe, Securities Lending

ESMA, ETFs, Europe, Securities Lending, topstory, UCITS

Independent European consumer organization BETTER FINANCE released a report on UCITS fee splits in the European securities lending market. They found the known wide disparities in fee splits and criticized…

ISLA launches new website

May 8, 2019

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 proud to announce the launch…

SFM Magazine, Spring 2019, is now online

May 7, 2019

Automation, Big Data, CCP, Collateral Management, Market infrastructure, Regulatory, Repo, Securities Lending, SFTR

Canada, collateral management, fully paid lending, Market infrastructure, Prime Brokerage, Securities Lending, SFTR, topstory

Securities Finance Monitor Magazine, Spring 2019, is now online. This edition features articles on fully paid lending, Canadian banks in the global prime brokerage market, market data in securities finance,…

Bursa Malaysia launches POC for securities lending on blockchain

May 6, 2019

blockchain, Bursa Malaysia, Securities Lending

Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) embarks on a securities borrowing and lending (“SBL”) Proof-of-Concept (“POC”) – a first of its kind in the ASEAN, that explores the…

Fintech weekly deals and partnerships roundup

BNY Mellon and AcadiaSoft team up for non-cleared margin outsourcing Buy-side derivatives market participants are now able to fully outsource their entire non-cleared margin workflow, via the market’s first end-to-end…

Key takeaways from FISL NYC 2019 (Premium)

May 6, 2019

Regulatory, Securities Lending, SFTR

FISL NYC 2019, Regulation, Securities Lending, SFTR, topstory

We were pleased to welcome 279 attendees to the Finadium Investors in Securities Lending (FISL) conference in New York City last week. The event was dynamic, engaging and brought up…

OCC seclending CCP volumes down 1.6% in April 2019 year over year

May 2, 2019

OCC, Securities Lending

OCC’s securities lending CCP activity was down 1.6 percent in new loans from April 2018 with 109,141 transactions last month. Year-to-date stock loan activity decreased 2.3 percent from 2018 with…

Does the European pledge model solve all ills? (Premium)

April 30, 2019

Europe, Securities Lending

Europe, Pledge model, Securities Lending, topstory

The benefits of the pledge model in securities lending for borrowers are clear: by retaining legal ownership of the security with the borrower, regulated entities no longer have the obligation…

Korea lets a blockchain seclending platform into the sandbox – should you care?

April 23, 2019

Asia, Blockchain, Securities Lending

blockchain, Directional, Korea, Securities Lending, topstory

Last week the Korea Financial Services Commission approved nine companies for its regulatory sandbox, giving them permission to experiment with new services and products without excessive regulatory burden. One of…

NN: How ESG principles can make a difference in securities lending

April 15, 2019

ESG, NN, Securities Lending

Securities Lending, Technology

The incorporation of sustainability principles in securities lending programs has accelerated in recent years, as more stringent requirements in terms of regulation and transparency have led to a significant increase…

No longer leading edge: Fully Paid Lending has entered the mainstream

April 11, 2019

Richard Stinchfield

Broadridge, fully paid lending, Securities Lending, topstory

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