CASLA conference chair Mary Jane Schuessler explains what the association will be focusing on this year and discusses the main market drivers for the rest of the year
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At CASLA, what is your main focus this year? What initiatives are you currently working on?
The Canadian Securities Lending Association’s (CASLA) main objective is to promote the long-term viability of the Canadian securities lending market through enhancing the public’s understanding of securities lending and the role it plays in Canada’s financial markets.
Current initiatives include working with regulators to level the playing field for the Canadian mutual fund space allowing equities as collateral ,similar to insurance companies and pension plans. CASLA continues to work closely with its board members in order to table regulatory changes and remains engaged with other global industry associations where international regulations may impact Canadian participants.
What market drivers in Canada should people be aware of this year?
Regulatory pressures have and will continue to play a significant role in the securities lending landscape. Canada has seen some instrumental changes driving different sources of demand and supply over the past few years.
The mutual fund space introduced new rules commencing January this year allowing for a much broader investment space utilising alternative strategies, which in turn will increase the demand side.
The Investment Industry Regulatory Organization of Canada has laid out a framework for fully paid lending programmes in Canada which will impact the supply side of the equation.
What are the biggest challenges Canada’s securities finance market is currently facing?
As you look across the value chain of participants in the securities finance space challenges would not be in short supply. The increased costs of funds due to regulatory ratios continue to work its way through all of the Canadian banks. The specials market in Canada has been heavily dominated by the cannabis industry creating and introducing some sector reliance and regulations like the Securities Financing Transaction Regulation (SFTR), which has major infrastructure changes due to the vast reporting it entails.
What can delegates expect from the conference this year? What will the main topics be?
This year has been an action-packed year for the Canadian securities finance industry with increased regulatory impacts to new entrants in the liquid alternatives space to new supply through the introduction of fully paid lending and of course cannabis.
In short, it is going to be hard to fit all relevant topics in one day. There is a robust line-up of panellists and speakers with topics including hearing from the buy side, regulatory updates/hurdles with a focus on funding as well as the technology and a leaders panel looking at what the future holds. The speaker line up will not disappoint, with a macroeconomist speaking, a cannabis economist and the Right Honourable Stephen Harper discussing his new book; Right Here Right Now.
What are you most looking forward to about the conference?
This is actually a very difficult question; the day offers many facets and making sure there is something for everyone is what I enjoy most about helping to put this conference together.
For me personally, I truly enjoy talking to the guest speakers and always gain insights and learn so much from them. This is the first year we are introducing a session on diversity through our partnership with the Women in Securities Finance group, which is another part of the day I am very excited about and proud to be a part of.
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