Securities lending has entered the mainstream. No longer a back office function, this US$2 trillion market is the backbone of substantial operations and over US$8 billion of revenues in financial markets. It is also the focus of current Congressional and SEC investigations, several of which may turn this once quiet backwater of the securities industry into a transparent marketplace.
Join Finadium and Markets Media for an exciting debate on key issues for market participants:
Hedge funds used to rely exclusively on their prime brokers for securities loans. What happens when there are multiple prime brokers and independent venues for obtaining loans? If prime brokers are not involved in financing, what happens to the hedge fund/prime brokerage relationship?
Should securities lending be a transparent bid/offer market? How does this affect pricing and operations?
What are the trading and arbitrage opportunities inherent in the securities lending business, and can anyone take advantage of them?
Securities lending indices are now arriving on the market. What does this mean for benchmarking and transaction cost analysis for securities loans? Can these indices be used for hedging and swaps?
New regulations for both short selling and securities lending are being proposed in Washington. What are the impacts of these changes for market participants?
D.C.