CIBC Mellon, Northern Trust, RBC Dexia and State Street Corporation have combined to form the Canadian Securities Lending Association (CASLA) to advocate on behalf of all securities lending market participants in Canada.
“This is a major step forward in the continuing development of the Canadian securities lending market, said the founding members in a joint statement. We are pleased that our industry now has a collective voice in Canada and will continue to develop strong linkages with similar global associations.”
The securities lending market in Canada has been active for several years. At the end of 2008, the Canadian industry had CAD886 billion available for lending and CAD119 billion on loan, according to U.K.-based Data Explorers
The four founding companies account for more than 90% of the Canadian securities lending market.
CASLA will canvas industry firms and professionals for membership in the near future, and will hold elections for executive positions in 2010. Participants in the beneficial owner and borrower and lender communities are encouraged to join.
CASLA will work directly with Canadian regulators and stakeholders on issues that are relevant to its members, said Dave Sedman, manager, global securities lending at The Northern Trust Company, Canada Branch. As a local organization, CASLA will develop solutions that are suited to Canadas legal and regulatory framework, and make sense for this marketplace.
CASLA is designed to give the industry a unified voice specific to the Canadian legal and regulatory framework, with the involvement of all market participants, said Mark Fieldhouse, director of technical sales at RBC Dexia. The establishment of a forum where regulators and stakeholders can address pertinent issues will play an important part in the further successful evolution of Canadas vibrant securities lending market.
We are delighted to be one of the founding members of the Canadian Securities Lending Association, an industry association that seeks to enhance the publics understanding of securities lending, a key area within the financial services industry, said Don DEramo, senior managing director, securities finance at State Street. CASLA will allow members to exchange ideas and draw upon best-practices in managing issues affecting securities lending in Canada.
Other securities lending associations around the world include the Australian Securities Lending Association (ASLA), International Securities Lending Association (ISLA) in Europe, Pan Asian Securities Lending Association (PASLA) and the Risk Management Association (RMA) in the U.S.
L.D & G.T