The Association of Corporate Treasurers, along with the British Bankers’ Association, International Securities Lending Association, London Investment Banking Association, London Stock Exchange and the Securities Lending and Repo Committee have commissioned a new guide on securities lending markets.
The publication aims to describe securities lending markets, with an emphasis on the United Kingdom, although UK markets are highly international in terms of both participation and securities lent and borrowed. The intended audience is those with an interest in securities lending, including trustees of pension or other funds that already lend their securities or might consider doing so, managers of companies whose securities are lent, financial journalists and the authorities.
Association of Corporate Treasurers
British Bankers’ Association
International Securities Lending Association
London Investment Banking Association
London Stock Exchange
Securities Lending and Repo Committee
A new guide to securities lending markets has been published in London today, commissioned by the Association of Corporate Treasurers, British Bankers’ Association, International Securities Lending Association, London Investment Banking Association,
Securities lending - the temporary transfer of securities on a collateralised basis - is a major and growing activity providing significant benefits for issuers, investors and traders alike. These are likely to include improved market liquidity, more efficient settlement, tighter dealer prices and perhaps a reduction in the cost of capital.
The scale of securities lending globally is difficult to estimate, as it is an 'over the counter' rather than an exchange-traded market. However, it is safe to say that the balance of securities on loan globally exceeds £1 trillion.
