Securities Lending Today

Inaugural ISLA Introduction to Securities Lending Course - 7 July

Next week I will be teaching the inaugural ISLA Introduction to Securities Lending course.  The objective of the course is to provide delegates with insight and information on the this critical component of the capital markets. 

What you will learn:

• What is securities lending?
• Market statistics and data
• Demand drivers
• Risks involved with Securities Lending
• Collateral management
• Routes to market
• Key trends, issues and challenges for the industry in 2010 and beyond

Who would benefit from attendance at this one day course?

• Investment professionals hoping to learn more about the issues and challenges facing beneficial owners and trustees whose assets are involved in securities lending (or are considering it);
• Market participants who wish to provide narrowly-focused or less experienced staff with a broad perspective on the business;
• Interested parties such as regulators and media personnel;
• Technology providers looking to obtain a greater appreciation of market dynamics;
• Anyone hoping to gain more in-depth information regarding the state of the securities lending business, its practices and procedures.

FinTuition, the market leader in securities finance, prime brokerage and hedge fund training has been selected by the International Securities Lending Association to deliver this training. ISLA represents the common interests of pension funds, insurance companies, asset managers, banks and securities dealers engaged in securities lending and is working with FinTuition and other firms to enhance education and understanding of securities lending for the widest possible community of stakeholders.

This introductory course is being offered at the amazingly low price of £295.00 for ISLA members and £495.00 for non-ISLA members. 

There are other courses, but only one such course endorsed by the European trade association and taught by an active leading market participant with over 30 years experience as a borrower, lender and service provider.

Central Counterparty White Paper

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.

ISLA partners with FinTuition on "Introduction to Securities Lending" Course

The International Securities Lending Association (ISLA) is to partner with FinTuition  on the training group’s Introduction to Securities Lending course as part of its new education initiative. The course is a one-day module designed to give attendees a broad overview of what securities lending is and how it works.

Having considered a number of potential partners, ISLA chose to work with FinTuition on the introductory course and expects to make further announcements about other training modules shortly.

ISLA Chief Executive Kevin McNulty said: “We are very excited to announce the first element of ISLA’s education programme. FinTuition’s experience of providing training courses for securities lending and their in-depth product knowledge make them an ideal partner for us.”

ISLA decided to develop a formal education framework in 2009, to help support the training and competence requirements of its members and other market participants. Rather than develop training modules in-house, the ISLA board decided to partner with a firm that has a proven track record in delivering quality training programmes.

The first phase of this strategy will encompass three training modules: an introductory course, a course that provides in-depth coverage of the Global Master Securities Lending Agreement, and a computer based module on the SLRC Code of Guidance (an industry best practice code).

Roy Zimmerhansl, owner and principal of FinTuition said: “ISLA has taken a leading role in promoting a better understanding of securities lending during a particularly challenging period for the industry. We are very pleased that ISLA has selected FinTuition to help inform and educate the markets, media and regulators.”

You can read the press release  here..