Securities Lending Platform Publishes Guide For Beginners

eSecLending, a securities lending agent and electronic platform, has published a guide on securities lending for mutual and pension funds new to the practice.

The guide advises on a number of best practices of how to lend, and details what is securities lending, who participates and why.

The release of the guide comes after eSecLending formed a working group from across the U.S. mutual fund industry in 2012 to assess the changing securities lending environment due to regulation.

“Recent market events have reminded securities lending participants that securities lending has a risk return profile and should be evaluated based on the risks inherent to each lending program’s specific structural characteristics,” it says in the guide.