Securities Finance

Through the combination of its existing Collateral Cockpit, SIX will provide a fully automated system for collateral management processes.

MUFG Investor Services will leverage the Equilend Spire securities finance system for all pre- and post-trade services wrapped up in one solution.

The two firms have partnered to develop a front-to-back securities lending solution using the Wematch platform for mutual clients.

The new mandate extends the relationship between the two firms, with the French custodian providing depositary banking services to Fondoposte since 2016.

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.