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.
BNY Mellon has taken an active role in promoting the cleared repo and securities lending markets to its buy-side clients globally.
Royal Bank of Canada and its Channel Islands subsidiary have joined LCH RepoClear as clearing members for Euro and Sterling debt.
After bringing the securities lending business back into securities services, Deutsche Bank is on an ambitious goal to seek greater cross-product opportunities.
Recent expansions by retail brokers to facilitate securities lending programmes could further expand the market for institutional players.
National authorities are not expected to enforce the reporting obligations under SFTR as until 13 July 2020.