Securities Lending

Collateral Management

collateral trading, Repo, Securities Lending, topstory, Total Return Swaps

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

Finadium: Are You Ready for DTCC’s Equity Finance CCP?

January 14, 2020

CCP, Market infrastructure, Securities Lending

CCP, DTCC, equity finance, Finadium, NSCC, Securities Lending, topstory

DTCC’s equity finance central counterparty (CCP), expected to launch in early 2021, has the potential to change long-held patterns in the securities lending industry, both in the US and abroad.…

Problems with US SEC filings on securities lending: the case of BMO Global Asset Management

January 9, 2020

Investments, SEC, Securities Lending

BMO GAM, Dreyfus, mutual funds, sec, Securities Lending, topstory

US mutual fund and ETF filings on securities lending with the US Securities and Exchange Commission continue to be a mix of spot-on accurate and decidedly off-beat. They can require…

We size the global collateral markets at $19.8 trillion (Premium)

January 7, 2020

CCP, Collateral Management, Derivatives, Repo, Securities Lending

collateral, OTC derivatives, Repo, Securities Lending, topstory

Finadium conducted a market sizing exercise of the global collateral markets, including a diversity of collateral product types held by private sector market participants. Here’s what we found. Continue reading

IHS Markit’s 2019 securities lending snapshot: H1 underperformance, Q4 upswing

January 7, 2020

IHS Markit, market data, Securities Lending

Global revenue falls 6.3% to $10.1 billion 2019 delivers second-highest annual revenue in the last decade In North America, equity specials shine in 2nd half of year Fee compression weakens…

FT: Bank of Japan’s securities lending facility for ETFs set to avert liquidity squeeze

January 4, 2020

Bank of Japan, ETFs, Securities Lending

Japan acts to avert ETF market liquidity squeeze The Bank of Japan has launched an unusual lending facility for exchange traded funds as it tries to mitigate the market impact…

OCC’s securities lending CCP decreased by 4% in Dec 2019, year over year

January 2, 2020

OCC’s securities lending CCP activity decreased by 4.07 percent in new loans from December 2018 with 102,583 transactions last month. Annual stock loan activity decreased 5.27 percent from 2018 with…

DataLend reports 13% decline in 2019 securities lending revenues, to $8.66 billion

January 2, 2020

DataLend, Equilend, Securities Lending

The global securities finance industry generated $8.66 billion in revenue for lenders in 2019, according to market data provider DataLend. While 2018 was a record amongst recent years for securities…

Bank of Japan announces ETF lending facility

December 19, 2019

Bank of Japan, ETF, Securities Lending

The Bank of Japan decided to introduce the ETF lending facility, through which it can temporarily lend its ETFs holdings to market participants, with the aim of improving the liquidity…

ESMA combats “un-due short-termism” in markets, no action on seclending

December 19, 2019

ESG, ESMA, Securities Lending, Short selling

The European Securities and Markets Authority (ESMA) has published its findings on potential undue short-term pressures in securities markets. The European Commission (EC) had asked the three ESAs (ESMA, EBA…

Webinar: Introduction to Collateralized Transactions for Students and New Professionals

December 17, 2019

Finadium Event

OTC derivatives, Repo, Securities Lending, topstory

January 15, 2020 10AM New York 3PM London 4PM Paris/Frankfurt In this free public webinar, Finadium will deliver an overview of repo, securities lending and OTC derivatives collateral activity, linked…

BEAT final regulations change securities lending provisions

December 15, 2019

BEAT, Securities Lending

From “Changing the BEAT – Final regulations answer key questions, proposed regulations give new relief” Eversheds Sutherland Responding to comments, the final regulations include securities lending transactions in the category…

Registration Live: Finadium Investors in Securities Lending, New York, May 13-14, 2020

December 12, 2019

Uncategorized

Beneficial Owners, FISL, Securities Lending, topstory

Finadium and eight leading securities finance market participants are pleased to welcome you to our fourth annual Finadium Investors in Securities Lending (FISL) New York Conference, to be held May 13-14, 2020. Continue…

SEC’s Dalia Blass speaks on affiliated securities lending

December 10, 2019

affiliated lending, mutual funds, sec, Securities Lending

Keynote Address — 2019 ICI Securities Law Developments Conference Dalia Blass Director, Division of Investment Management Washington D.C. Dec. 3, 2019 Affiliated Securities Lending As we work to modernize asset…

Did Japan’s Government Pension Investment Fund make the right decision in exiting equity lending? (Premium)

December 9, 2019

Investments, Securities Lending

Government Pension Investment Fund, Japan, Securities Lending, topstory

We’ve already heard from multiple buy-side clients that the suspension of stock lending by Japan’s Government Pension Investment Fund (GPIF) has made them question their own engagement. The headlines from…

ISLA publishes EU seclending markets manifesto with 5-year priorities

December 5, 2019

ISLA, Securities Lending

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…

Japan’s Government Pension Investment Fund halts equity securities lending program

December 3, 2019

Japan, Securities Lending

As part of its stewardship responsibilities, GPIF requires its asset managers to enhance the long-term value of investee companies by conscientiously exercising voting rights for all the shares they hold,…

OCC seclending CCP activity declined 17.6% in Nov 2019 year over year

December 3, 2019

OCC’s securities lending CCP activity decreased by 17.6 percent in new loans from November 2018 with 92,138 transactions last month. Year-to-date stock loan activity has decreased 5.38 percent from 2018…

European banks transact on DLT-based seclending platform

December 3, 2019

Commerzbank, Credit Suisse, Deutsche Borse, DLT, HQLAx, Securities Lending, UBS

Deutsche Börse and HQLAᵡ successfully launched their jointly developed Distributed Ledger Technology (DLT) solution for frictionless collateral swaps in the securities lending market. The live transactions were executed by Commerzbank,…

SGX enhances Securities Borrowing and Lending programme with introduction of variable rates

November 27, 2019

Securities Lending, SGX

Fixed rates to be replaced with competitive variable rates for over 450 securities With effect from 2 December 2019, Singapore Exchange (SGX) will replace the fixed rates for its Securities…

Zero fee fund managers have incentives to improve securities finance market structure

November 25, 2019

ETFs, Investments, Securities Lending

ETFs, mutual funds, Securities Lending, topstory, Zero fee

The growth of zero fee ETFs has fingers pointing in the direction of securities lending as a main way that these funds earn revenues. Managers in this space have an…

The impact of direct agency lending programs for asset owners, hedge funds and market structure (Premium)

November 19, 2019

Hedge Funds, Securities Lending

agency lending, Beneficial Owners, Direct Agency Lending, enhanced custody, hedge funds, Securities Lending, State Street, topstory

State Street got warranted attention with its October 10, 2019 announcement that it had launched Direct Access Lending, a program to lend beneficial owner assets to hedge funds, with indemnification…

Preview: Zurich Securities Finance Roundtable, 4 December 2019

November 12, 2019

Repo, Securities Lending

ESG, securities finance, Securities Lending, topstory, Zurich

We’re looking forward to our Securities Finance Roundtable in Zurich on 4 December 2019. We started this event in 2014 with ZKB, and have seen it evolve to this year’s…

Finadium Big Ideas Quarterly Q4 2019 now online

November 7, 2019

Collateral Management, Repo, Securities Lending

collateral management, Repo, Securities Lending, topstory

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

TreasurySpring’s Kevin Cook on new channels for European cash management (Premium)

November 6, 2019

Repo, Securities Lending

APIs, corporate loans, Fixed Term Fund, Repo, Securities Lending, topstory, TreasurySpring

Repo and securities lending are being exported to new markets via TreasurySpring’s standardized Fixed Term Fund (FTF). We spoke with Kevin Cook, CEO and co-founder, about current uptake and future…

TSD: Malyasia bourse completes first blockchain PoC for securities lending

November 1, 2019

blockchain, Bursa Malaysia, SBL, Securities Lending

Bursa Malaysia has completed its first securities borrowing and lending proof-of-concept (SBL PoC 1) blockchain technology solution. It was executed and tested with technology partner Forms Syntron Information, a subsidiary…

BoE Securities Lending Committee discusses diversity and ESG

October 30, 2019

Bank of England, diversity, ESG, Securities Lending

Members noted the importance of encouraging gender diversity in industry panels, and discussed how best to encourage more women to participate in these. Some members noted that there is often…

A move towards ultrashort cash collateral vehicles has some worried about liquidity risk (Premium)

October 29, 2019

Cash management, Securities Lending

asset managers, cash collateral, Securities Lending, topstory, ultrashort, US

New survey data shows US asset managers increasing their use of ultra-short funds for securities lending cash collateral investments. Is this slight increase in risk over prime funds a cause…

Extreme specials: great for the winners, bad for the markets (Premium)

October 14, 2019

Securities Lending

benchmarking, hyperspecials, Securities Lending, topstory

IHS Markit has released their Q3 2019 securities finance revenue summary showing “eye popping” returns for selected specials. This drove revenues to $2.6 billion, up 5% from Q3 2018. While…

BIS paper shows broad support for central bank securities lending programs

October 9, 2019

BIS, Central Banks, Markets Committee, Securities Lending

Excerpts from “Large central bank balance sheets and market functioning“, Bank for International Settlements Markets Committee, Oct 7 2019. Securities lending programmes (SLPs) are a potent and flexible mitigation tool…

Where does the SEC stand on no action letters for asset managers in securities lending? (Premium)

October 7, 2019

SEC, Securities Lending, US

asset managers, no action letters, sec, Securities Lending, topstory

We recently spoke with the US Securities and Exchange Commission (SEC) on their thinking about issuing no action letters for asset managers to launch their own direct or affiliated securities…

OCC securities lending volumes rose 1% in Sept 2019 year over year

October 1, 2019

OCC’s securities lending CCP activity increased by 1 percent in new loans from September 2018 with 102,863 transactions last month. Year-to-date stock loan activity has decreased 2.21 percent from 2018…

SFM Magazine, Fall 2019, is now online

October 1, 2019

Big Data, Collateral Management, Common Domain Model, Repo, Securities Lending, SFTR, Technology

buy-side, collateral, Repo, securities finance, Securities Lending, SFTR, topstory, treasuries

Securities Finance Monitor Magazine, Fall 2019, is now online. This edition features articles on best execution in securities lending, electronic dealer and RFQ repo markets, the Common Domain Model in…

P&I: Natixis Asset Management fined €3 million by AMF for seclending breaches

October 1, 2019

Natixis Asset Management, Securities Lending

Natixis Investment Managers International was fined €2 million ($2.5 million) for breaches relating to disclosure of profits from securities financing transactions and the management of conflicts of interest related to…

ISLA & Linklaters Publish a Joint Paper on Digitalisation & the Securities Lending Market

September 26, 2019

CDM, digitization, ISLA, Linklaters, Securities Lending

The International Securities Lending Association (ISLA) is delighted to announce the publication of a new white paper titled The Future of the Securities Lending Market | An Agenda for Change.…

HQLAx completes demonstration of blockchain securities lending model, plans Nov 2019 launch

September 24, 2019

blockchain, HQLAx, Securities Lending

With the execution of multiple simulation transactions by several global banks including Commerzbank and ING, HQLAˣ successfully demonstrated its operating model, an innovative blockchain based solution for collateral swaps in…

Asset manager thinking on counterparty default indemnification including CCPs (Premium)

September 24, 2019

CCP, Securities Lending

asset managers, CCPs, Indemnification, Securities Lending, topstory

In Finadium’s 2019 survey of asset managers in securities lending, we asked about the value of counterparty default indemnification including would managers seek indemnification if the borrower was legally a…

Investors in Securities Lending conference launches tomorrow in Paris

September 23, 2019

ESG, Europe, Securities Lending, SFTR, Technology

BNPP, Citi, ESG, Eurex, Euronext, FISL Europe, MarketAxess, Securities Lending, topstory, Total Return Futures

We are excited to welcome roughly 150 attendees to the Finadium Investors in Securities Lending (FISL) conference tomorrow, this year in Paris. Here’s what’s in store for this buy-side oriented…

SEC charges Prudential Financial units with seclending-related tax benefits at the expense of advised funds

September 17, 2019

Prudential, sec, Securities Lending

The Securities and Exchange Commission today charged two subsidiaries of Prudential Financial Inc. with failing to disclose conflicts of interest and making misleading disclosures to the boards for 94 funds…

Reserve Bank of India working with regulators to develop fixed income securities lending

September 11, 2019

India, RBI, Securities Lending

20th FIMMDA – PDAI Annual Conference Shri B.P Kanungo, Deputy Governor, Reserve Bank of India – August 31, 2019 – Moscow IRDA, SEBI and PFRDA too could help development of…

Help wanted: buy-side firm seeks CCP business model for securities lending

September 5, 2019

Rajen Sheth

CCP, Securities Lending, Technology

Beneficial Owners, buy-side, CCP Gateway, CCPs, Pirum, Securities Lending, topstory

CCPs for the buy-side in securities finance, long thought of as an elusive unicorn, are now coming to fruition in what may be the most important change to the industry…

ISLA publishes Regulatory and Policy Maker Guide to Securities Lending, in association with Finadium

September 4, 2019

Finadium, ISLA, Regulatory, Securities Lending

The International Securities Lending Association is delighted to announce the publication of its new Regulator & Policy Maker Guide to Securities Lending. Produced in association with Finadium, a consultancy focused on…

OCC seclending CCP volume declined 5.53% in August 2019 year over year

September 3, 2019

OCC’s securities lending CCP activity was down 5.53 percent in new loans from August 2018 with 111,375 transactions last month. Year-to-date stock loan activity has decreased 2.56 percent from 2018…

ISLA’s 11th securities lending market report notes uncertainty and faster pace of regulatory change

August 30, 2019

ISLA, Securities Lending

We are delighted to announce the release of the 11th Edition of the ISLA Securities Lending Market Report. The report continues to provide a platform for us all to better understand…

FISL Europe: IHS Markit on a quantifiable risk overlay for measuring securities lending performance

August 28, 2019

Securities Lending

benchmarking, IHS Markit, performance measurement, Securities Lending, topstory

We spoke with IHS Markit’s managing director and global head of securities finance Paul Wilson about what calculating a “risk overlay” on securities lending performance might look like. Wilson is…

Finadium: Leading Asset Managers on Securities Lending: A Finadium Survey

August 27, 2019

Cash management, Collateral Management, Securities Lending

asset managers, collateral management, Securities Lending, topstory

This report presents the results of Finadium’s 11th survey of asset managers in securities lending across program operations, fee splits, collateral management and more. The report is a peer review…

P&I: Los Angeles County Employees preps securities lending search

August 25, 2019

LACERA, Securities Lending

Los Angeles County Employees Retirement Association, Pasadena, plans to launch a search for a securities lending firm soon, according to board minutes of the $58.4 billion pension fund. State Street…

Northern Trust Develops Machine Learning Based Forecasting Engine to Drive Securities Lending Revenue

August 12, 2019

News and Notes, News and Notes – Fintech

machine learning, Northern Trust, Securities Lending

Northern Trust (NTRS) announced today it has developed an innovative pricing engine that utilizes machine learning and advanced statistical techniques to drive revenue growth for clients by more effectively forecasting…

Finadium Big Ideas Quarterly Q3 2019 now online

August 6, 2019

Investments, Regulatory, Securities Lending, Technology

Common Domain Model, ESG, SA-CCR, Securities Lending, topstory