ISLA: work to be done
19 June 2014 Berlin
Image: Shutterstock
The job of fostering recovery and resolution in the securities market is not finished, according to a panel at the International Securities Lending Association conference in Berlin.
Panellists commented that, although measures such as the European Market Infrastructure Regulation are starting to affect the industry, improvements still need to be made to the regulatory framework itself.
Transparency was singled out by the panel as being integral to the process of assessing how markets work, particularly in securities finance transactions.
Clearing was also raised as having potential to make markets safer, though this is not yet the case as far as the panel were concerned.
A shortage of collateral in the future, though not deemed as a possibility by 59 percent of the audience, was highlighted as a real threat.
One of the panellists commented: "For us to not have a shortage we have to take this very seriously."
"We need to go out there and invest in infrastructure in our organisations to bring collateral onto one platform. If we do not do this, I am convinced that this could become a very real problem."
Panellists commented that, although measures such as the European Market Infrastructure Regulation are starting to affect the industry, improvements still need to be made to the regulatory framework itself.
Transparency was singled out by the panel as being integral to the process of assessing how markets work, particularly in securities finance transactions.
Clearing was also raised as having potential to make markets safer, though this is not yet the case as far as the panel were concerned.
A shortage of collateral in the future, though not deemed as a possibility by 59 percent of the audience, was highlighted as a real threat.
One of the panellists commented: "For us to not have a shortage we have to take this very seriously."
"We need to go out there and invest in infrastructure in our organisations to bring collateral onto one platform. If we do not do this, I am convinced that this could become a very real problem."
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