Securities Lending

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

The first no-fee ETFs and funds are now being marketed by Fidelity. Other asset managers have already seen share-price declines and more no-fee products are expected to follow. Securities lending…

OCC securities lending up 19% in July 2018 over July 2017

August 1, 2018

OCC, Securities Lending

OCC’s securities lending CCP activity was up 19 percent in new loans from July 2017 with 218,786 transactions last month. Year-to-date stock loan activity increased 22 percent from 2017 with…

European roundup: some weighty news for the end of July (Premium)

August 1, 2018

CCP, Cleared Interest Rate Swaps, Derivatives, ESMA, Europe, Securities Lending

Clearing, Deutsche Bank, Deutsche Borse, ESMA, Europe, FT, Securities Lending, topstory

As July wound down, European market participants released some important news items. We look at Euro clearing moving to Frankfurt, UCITS funds and collateral and the FT’s article on SFTR.…

We review the DTCC/Field Effect white paper on SFTR

July 31, 2018

Market infrastructure, Securities Lending

DTCC, Securities Lending, SFTR, topstory, Trade repositories

With all the noise about SFTR, it’s often hard to separate out what is useful vs. what is just more agitation. The new white paper from DTCC and the Field…

Finadium announces H2 2018 event calendar for New York, London and Zurich

July 11, 2018

Collateral, Liquidity Management, Repo, Technology

collateral, Finadium events, Liquidity, Repo, Securities Lending, technology, topstory

Finadium will enter the fall months with a robust slate of events on technology, collateral, repo and securities lending. Here’s our upcoming calendar of events in New York, London and…

Capital markets put blockchain into production but cautious on cryptocurrencies

July 4, 2018

Blockchain, Cryptocurrency, Technology

Accenture, blockchain, Central Banks, cryptocurrencies, DLT, IMF, Intel, Securities Lending, Tel Aviv Stock Exchange, topstory

As 2018 becomes the year of production-grade blockchain projects in capital markets, wider institutional adoption for cryptocurrencies is still looking for regulatory cues before moving ahead. Continue reading

SFM Magazine, Summer 2018, is now online

July 2, 2018

Big Data, Collateral Management, Regulatory, Repo, Securities Lending, Technology, Trade Repositories, Tri-Party Repo

Big Data, collateral management, Data repositories, Emerging Markets, Europe, Regulation, Repo, Securities Lending, topstory

Securities Finance Monitor Magazine, Summer 2018, is now online. This edition features articles on what to do with all the data that regulators are collecting, if securities lending is a…

Webinar replay: Securities Finance Data for Investment Decision Making (Premium)

June 27, 2018

Big Data, Repo, Securities Lending

Big Data, Repo, securities finance, Securities Lending, topstory

Finadium presented a webinar on how securities finance data is being used in practice by asset managers as a source of alternative data. Finadium clients can watch the webinar replay…

Where do SFTs fall in the FRTB? There appears to be more than one answer

June 26, 2018

Basel III, Regulatory

FRTB, Regulatory, Repo, securities finance transactions, Securities Lending, topstory

In this article we look at arguments for where Securities Finance Transactions (SFTs) fall in the Fundamental Review of the Trading Book (FRTB). The answer is either the trading book…

The future of European securities lending: it’s still about people

June 25, 2018

Dan Copin

Europe, Securities Lending

CACEIS, Securities Lending, SFTR, topstory

The European securities lending market continues to go through profound change as regulation and competitive pressures push firms to streamline their operations. Whichever way the market turns, we must remember…

Is securities lending a model for the future of repo post-trade automation?

June 21, 2018

Todd Crowther

Automation, Repo, Securities Lending, Technology

automation, Pirum, Repo, Securities Lending, technology, topstory

Repo can learn a lot from the securities lending market. Automation in securities lending post-trades processing is at an advanced state whereas repo participants are at various stages of transitioning…

ISF: can TCA for securities lending work?

June 19, 2018

Securities Lending, TCA

Is it possible to bring transaction cost analysis into the securities lending space? Or is the market too nuanced to support such a universal price-discovery mechanism? Many beneficial owners would prefer…

ISLA welcomes Spain securities lending consultation

May 20, 2018

ISLA, Securities Lending, Spain

ISLA announced it “is delighted” to see the recent consultation from the Spanish Ministry of Economy regarding securities lending and mutual funds. ISLA said in a statement: “Over time, we…

Analysis of audience questions at FISL: indemnification the hot topic, top future tech prediction (Premium)

May 17, 2018

FISL, Securities Lending, Technology

Beneficial Owners, Big Data, FISL, Indemnification, Securities Lending, topstory

Between Finadium’s two Investors in Securities Lending conferences in New York and London, almost 30% of audience questions focused on one topic: indemnification. It’s tough to make an analogy for indemnification…

Tel Aviv bourse is developing a blockchain securities lending platform

May 16, 2018

News and Notes, News and Notes – Fintech

Accenture, blockchain, Intel, Securities Lending, Tel Aviv Stock Exchange

In cooperation with Accenture, fintech hub The Floor and Intel, Tel Aviv’s stock exchange is developing Blockchain Securities Lending (BSL), one of the first projects of its kind in the world. The use…

A key idea for driving beneficial owner engagement in the securities lending market (Premium)

May 16, 2018

Investments, Securities Lending

Beneficial Owners, Securities Lending, topstory

Here’s the thing: you can create all the best events, the best technology and the best services, but if someone isn’t already at least moderately interested in a topic to…

What does it mean for AcadiaSoft to move into repo and securities lending margin processing? (Premium)

May 3, 2018

Collateral Management, Repo, Securities Lending, Technology

AcadiaSoft, collateral management, Repo, Securities Lending, technology, topstory

We noted in March that we were seeing overlap across industry utilities. The more that each utility grows, it sees that its clients have demands that it can serve. In…

Finadium Big Ideas Quarterly Q2 2018 now online

May 2, 2018

Blockchain, Collateral Management, Repo, Securities Lending

blockchain, collateral management, Repo, Securities Lending, topstory