Securities Finance

The trade body brings on one of the world’s most vocal proponents for ESG standards, providing a significant backer to the group’s ESG agenda.

A study from EY and PASLA found 89% of its members believe securities lending is compatible with ESG principles.

Trade associations including AIMA and FIA EPTA have said the short selling restrictions have failed to curb volatility and could pose long-term damage. 

With SFTR informally delayed until 13 July 2020, European regulators approve four trade repositories for all types of securities finance transactions. 

The clearing house has partnered with blockchain-specialist Axoni to develop the new system, and development is slated to begin in the second quarter of this year.

Securities lending experts argue beneficial owners are taking greater ownership over their governance responsibilities and applying these principles to securities lending programmes.  

Research from ICMA found that while demand for repo increased significantly dealers’ capacity to intermediate was constrained and limited access to many firms that needed it.

Initiatives follow fears that credit downgrades of securities and bonds could lead to a shortage of acceptable collateral. 

Restrictions in short selling in Austria, Belgium, France, Greece and Spain have been extended despite warnings of unintended consequences.

BBH appointed two long-time members of the business as co-heads of global securities lending, replacing Keith Haberlin who was appointed as head of BBH’s FinTech department.