Securities Lending

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

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

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

News and Notes, News and Notes – Fintech

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

In Finadium’s 2018 survey of institutional investors in securities finance, respondents voiced strong support for securities lending, collateral management and repo. These markets are seen as low risk and they…

Securities lending “controversies” from the Financial Times and Reuters, and a new lawsuit

November 13, 2018

FT, lawsuits, Reuters, Securities Lending, topstory

After years of writing about securities lending, the popular press still has a tendency to present the business in a negative light, even when something positive is happening. We saw…

Crypto is bypassing the securities industry

November 12, 2018

Blockchain, Cryptocurrency, Market infrastructure, Securities Lending, Technology

blockchain, Crypto, Repo, Securities Lending, topstory

A new crypto infrastructure is emerging that replicates many of the features of the securities industry yet operates under important different principles. While some efforts are being made by crypto…

IHS Markit says seclending revenues hit $2.5bn in Q3 2018

November 9, 2018

IHS Markit, Securities Lending

Banner year for EM equity lending continued in Q3 Lack of specials demand challenged US equity revenues Corporate bond demand robust, though revenue uptrend slowing Ten years ago, the third…

OCC securities lending CCP volume in Oct 2018 up 25.7% year over year

November 1, 2018

CCP, OCC, Options Clearing Corp, Securities Lending

Securities Lending: OCC’s securities lending CCP activity was up 25.7 percent in new loans from October 2017 with 129,863 transactions last month. Year-to-date stock loan activity increased 20.1 percent from…

Thoughts on agency securities lending (Premium)

October 29, 2018

agency lending, Institutional Investors, Securities Lending, topstory

As we complete our 2018 survey of institutional investors in securities lending, and having wrapped up our London client event last week, we have some further thoughts about the agency…

BBH: US/China trade war impact on securities lending

October 28, 2018

BBH, China, Securities Lending

President Donald Trump has slapped tariffs on $250 billion worth of Chinese goods this year, and Beijing has retaliated with levies of $110 billion on American products. The IMF’s projections…

Korea’s National Pension Service stops securities lending following criticism

October 24, 2018

Korea, Securities Lending

Business Korea: The National Pension Service (NPS) has decided to stop lending stocks to short sellers as criticism mounts against it. Kim Sung-joo, chairman of the National Pension Corporation, said…

SEB: “no products nor participates in structures whose sole purpose is to avoid taxes” in response to media reports

October 21, 2018

SEB, Securities Lending

Comment on tax arrangements in Sweden SEB offers no products nor participates in structures whose sole purpose is to avoid taxes, says SEB in a commentary on Friday’s media reports…

We analyze new US mutual fund securities lending disclosures, plus fee splits (Premium)

October 10, 2018

Investments, Securities Lending

mutual funds, Securities Lending, topstory

We analyzed the securities lending data of eight major US mutual fund complexes to see what real information they provided. Besides agent lender fee splits, we learned some important lessons…

OCC securities lending CCP up 6.9% in September 2018 year over year

October 3, 2018

CCP, OCC, Securities Lending

Securities Lending: OCC’s securities lending CCP activity was up 6.9 percent in new loans from September 2017 with 203,694 transactions last month. Year-to-date stock loan activity increased 17.0 percent from…

The SEC’s proposed ETF rules help ETF market makers but hurt securities lenders (Premium)

October 1, 2018

Liquidity Management, Operations, Securities Lending

ETFs, market makers, sec, Securities Lending, topstory

A new proposed regulation from the US Securities and Exchange Commission (SEC) will make the ETF market more efficient while predictably creating new winners and losers, in this case market…

Stock loan lawsuit update: Judge allows suit to proceed; we review the ruling (Premium)

September 28, 2018

Equilend, lawsuit, prime brokers, Securities Lending, stock loan, topstory

Collateral Management, Regulatory, Securities Lending

In a court order and opinion released yesterday, Judge Katherine Polk Failla rejected the motion of the prime brokerage defendants and EquiLend to dismiss the stock loan lawsuit brought by…

Regulatory Changes and the Need for Collateral Flexibility

September 27, 2018

Glenn Horner

collateral, non-cash, Regulation, Securities Lending, State Street, topstory

Since the financial crisis regulatory changes and market dynamics have led to an increased usage of non-cash collateral for securities lending transactions. This trend is most dramatic in the U.S., which…

Analysis of DTCC’s plans to launch a securities lending CCP (Premium)

September 17, 2018

CCP, Securities Lending

CCP, DTCC, Securities Lending, topstory

DTCC is planning a securities lending CCP to potentially launch as soon as summer 2019. This is an important development and could realistically transform the calculus of US securities loans…

ISLA releases 9th Securities Lending Market Report

September 11, 2018

ISLA, Securities Lending

The International Securities Lending Association (ISLA), a leading financial services trade association has today published its latest Securities Lending Market Report. This is the 9th edition of the report and…

Finadium: Next Steps for Agency Securities Lending, Or, Life After SFTR

September 10, 2018

agency lending, Securities Lending, topstory

SFTR is taking up substantial bandwidth now, but the future of the agency lending business will be defined more by larger financial services industry trends than the shorter-term need for…

OCC seclending CCP volume up 17% in August 2018 year over year

September 5, 2018

CCP, Options Clearing Corp, Securities Lending

OCC’s securities lending CCP activity was up 17 percent in new loans from August 2017 with 235,780 transactions last month. Year-to-date stock loan activity increased 21 percent from 2017 with…

Rebuilding tri-party repo for an open architecture model

September 4, 2018

Giancarlo Novello

Custodians, Derivatives, Market infrastructure, Securities Lending, Tri-Party Repo

OTC derivatives, Repo, Securities Lending, SIX, topstory, tri-party

The tri-party repo market was initially developed in the US in the late 70s, early 80s to drive efficiency gains in settlement and reduce operational risks. It then moved across…

Save the Date: FISL NYC is May 2-3, 2019

August 29, 2018

Finadium, FISL NYC, FISL NYC 2019, Securities Lending, topstory

Finadium Investors in Securities Lending (FISL) Conference May 2-3, 2019 New York City Save the Date Finadium has announced our next FISL NYC conference: May 2-3, 2019. Please reserve the…

Seclending blockchain enters pilot phase at Tel Aviv bourse

August 28, 2018

blockchain, Securities Lending, Tel Aviv Stock Exchagne

News and Notes – Fintech

The Tel Aviv Stock Exchange confirmed that development of its seclending blockchain is continuing after the proof-of-concept phase met its designated goals. It’s now starting the pilot stage, expected to…

Blockchain for securities lending is a great idea with a big problem (Premium)

August 16, 2018

Credit Exposure, Securities Lending, Technology

blockchain, Securities Lending, topstory

Coindesk ran an interesting article showing two opposing views on the use of blockchain for securities lending at State Street. Nick Delikaris, head of global trading and algorithmic strategies, supports the…

CoinDesk: State Street mulls pros and cons of securities lending blockchain

August 9, 2018

News and Notes – Fintech

blockchain, Securities Lending, State Street

It’s not a secret that State Street, the giant US custody bank, is looking to streamline the complex business of securities lending using blockchain. A decades-old industry, securities finance today…

What no-fee fund products mean for the securities lending market

August 7, 2018

ETFs, Securities Lending

ETFs, Securities Lending, topstory