Securities Lending

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

CCP, OCC, Securities Lending

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

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 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

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