Securities Lending

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

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

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

Review of responses to ESMA consultation on SFTR reporting

August 5, 2019

Regulatory, SFTR

ESMA, Repo, Securities Lending, SFTR, SFTs, topstory

Generally speaking, ESMA’s consultation paper on SFTR reporting under Articles 4 and 12 was accepted by the market. There are some lingering issues, but it appears that ESMA is heading…

Deutsche Börse launches buy-in agent service for CSDR

August 2, 2019

CSDR, Deutsche Borse, Securities Lending

Deutsche Börse Group is taking another important step in its efforts to best support both the financial industry and the regulatory agenda. With the Deutsche Börse Buy-in Agent Service, the…

OCC securities lending CCP up 10.5% in July 2019 year over year

August 1, 2019

OCC’s securities lending CCP activity was up 10.5 percent in new loans from July 2018 with 114,818 transactions last month. Year-to-date stock loan activity has decreased 2.1 percent from 2018…

DerivSource: FIX Launches New Messages for Post-Trade Space; More to Come in Repo & Sec Lending

August 1, 2019

DerivSource, FIX Trading, Repo, Securities Lending

The industry-driven standards body, FIX Trading Community, has launched a new set of message types geared for the post-trade space by supporting periodic future payment management. Use of these new…

Is there a culture gap in hedge funds building treasury divisions? (Premium)

August 1, 2019

Cash management, Hedge Funds, Repo

cash management, HazelTree, hedge funds, Repo, Securities Lending, topstory, Treasury

We’ve been wondering for a while why hedge fund treasury divisions seem to thrive at some firms and may be dismissed at others, so we asked some hedge funds about…

Cooley: SEC’s Investor Advisory Committee considers “proxy plumbing” recommendations

July 31, 2019

Cooley LLP, Custodians, proxy voting, Securities Lending

Inaccuracies in vote count. To say that there doesn’t seem to be a lot of confidence in the accuracy of the vote count would be an understatement. The Securities Transfer…

Australian Securities and Investments Commission to consult market on securities lending and ‘substantial holding’ disclosure

July 29, 2019

ASIC, Australia, Securities Lending

ASIC today published Consultation Paper CP 319 on securities lending by agents, and subsequent disclosure of a substantial holding in a listed entity. CP 319 explains how the relevant interest provisions in…

One idea for rebuilding the specials market in securities finance (Premium)

July 25, 2019

Hedge Funds, Prime Brokerage, Securities Lending

Agent Lenders, hedge funds, prime brokers, Securities Lending, topstory

Prime brokerage and agency lending revenues in Q2 2019 are both down significantly from the prior year. Part of the reason is Federal Reserve risk-off rate decisions that are propelling…

Details on the DTCC’s plan to launch a securities lending CCP, or rather, an SFT CCP (Premium)

July 23, 2019

CCP, Equities Repo, Repo, Securities Lending

CCP, DTCC, NSCC, securities financing transactions, Securities Lending, topstory

We spoke with Mike McClain, General Manager of equity clearing and settlement at DTCC’s National Securities Clearing Corporation (NSCC), and Laura Klimpel, Managing Director of Clearing Agency Services at DTCC,…

Finadium: Declining Securities Finance Volumes: Pricing, Problems and Solutions

July 11, 2019

automation, Finadium, pricing, Securities Lending, topstory

A new report from Finadium investigates the causes of reduced securities lending volumes from the perspectives of beneficial owners, agent lenders, prime brokers and hedge funds, and seeks solutions that…

IHS Markit says Q2 2019 seclending revenues down 10% from last three years’ Q2 averages

July 7, 2019

IHS Markit, Securities Lending

Global securities lending revenues for Q2 2019 totalled $2.6bn, 10% below the average Q2 revenue over the last three years. There were some bright spots, with an increase in special…

OCC seclending CCP volumes down 10.6% in June 2019 year over year

July 1, 2019

CCP, OCC, Options Clearing Corp, Securities Lending

Securities Lending: OCC’s securities lending CCP activity was down 10.6 percent in new loans from June 2018 with 106,566 transactions last month. Year-to-date stock loan activity has decreased 3.2 percent…

What’s next as the SEC addresses more unfinished Dodd-Frank business (Premium)

June 25, 2019

Dodd-Frank, Regulatory, SEC

capital, Dodd-Frank, sec, Securities Lending, Short selling, topstory

The US Securities and Exchange Commission (SEC) scored a big win last week with the announcement of capital and margin rules for security-based swap dealers and major security-based swap market…

The agent lender queue may no longer be in the client’s best interest (Premium)

June 19, 2019

Agent Lenders, Beneficial Owners, queue, Securities Lending, topstory

The queue methodology maintained by securities lending agents has long been the main way that agents show their clients that they are being treated fairly. The queue determines which clients…

BNYM clears the first Eurex Lending CCP client trade – have the floodgates opened?

June 18, 2019

CCP, Europe, Securities Lending

BNYM, Eurex, Lending CCP, Securities Lending, topstory

BNY Mellon announced today that it is the first agent lender to clear a client trade on Eurex’s Lending CCP. This move, some four years in the making at BNYM…

ISLA publishes Institutional Investor Guide to Securities Lending, in association with Finadium

June 17, 2019

Finadium, Institutional Investors, ISLA, Securities Lending

The International Securities Lending Association is delighted to announce the publication of its new Institutional Investor Guide to Securities Lending. Produced in association with Finadium, a consultancy focused on securities…

Finadium: ESG Funds in Securities Lending: A Statistical and Program Analysis

June 13, 2019

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

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 Management, Securities Lending

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