Central Counterparty (CCP) facilities for securities lending transactions have been under discussion for many years. During 2009 those discussions became a reality and today CCPs in Europe and the United States operate securities lending initiatives in collaboration with electronic trading platform providers.
To date, the arguments both for and against CCP have resembled ships passing in the night, with a lack of independent analysis and little resolution. Andrew Howieson (of Howieson Consulting Ltd) and I are nearing completion of a white paper that will seek to bring the discussion to a practical level.
The white paper will seek to achieve the following goals:- Provide a practical explanation of the purpose and objectives of CCPs;
- Identify the unique requirements of securities lending for CCPs;
- Give an analysis of the securities lending CCP implementations;
- Generate market perspectives for Beneficial Owners, Agent Lenders, Principal Borrowers and Hedge Funds
We have conducted interviews with a number of different firms, and we are still interested in speaking with more. If you would like to share your views with us, please contact us at ccp@stocklendingtoday.com - we will close the project for comments on 2 July.
Don't miss the following events that feature securities lending CCPs as part of the agenda:ISLA conference 22 - 24 June in Berlin - Panel session: "Central Counterparties for financing products in the real world" AND the "Roundtable Discussion on Central Counterparties for Securities Lending" which I am moderating. Andrew will also be in Berlin if you would like to meet us in person.
IMN Beneficial Owners conference June 28 & 29 in Boston - I am moderating the "Central Counterparties: Everything A Beneficial Owner Needs To Know" panel session.
