The newly-formed alliance of beneficial owners seeking lend and borrow assets directly, known as the Global Peer Financing Association (GPFA), says it has “received a significant number of enquiries” from other asset owners wishing to join.
GPFA was launched by four North American pension funds in July with the aim of promoting the use of peer-to-peer trading, which the group says is an “underutilised tool” for beneficial owners involved in securities lending.
The California Public Employees' Retirement System (CalPERS), the Healthcare of Ontario Pension Plan (HOOPP), the Ohio Public Employees Retirement System (OPERS), and the State of Wisconsin Investment Board (SWIB) came together to create the non-profit association alongside sponsorship from eSecLending, Osler, Hoskin & Harcourt and Credit Benchmark.
In a blog post, GPFA chair Robert Goobie, who also serves as assistant vice president collateral management, fixed income and derivatives at HOOPP, says: “It is clear that there is enthusiasm for this project and we are excited and energised by the positive feedback we have received from our pension fund peers, as well as from other market participants such as sovereign wealth funds, insurance companies, mutual funds, asset managers, other market associations, hedge funds, technology companies, custodian banks and broker dealers.”
He continues: “In this very low-yield environment and volatile market, the need for collaboration and information sharing to generate alternative sources of alpha and liquidity has never been more necessary.”
The association acknowledges that many of its potential members are “at a different stage of development” when it comes to peer-to-peer trading, but says it stands ready to assist firms in developing this aspect of their securities finance business.
“This will require a robust conversation amongst all stakeholders, from lenders to borrowers and potentially administrative partners,” Goobie explains. “We are interested in establishing partnerships with other likeminded individuals or associations from all areas of the market.”
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