Is the sec lending industry experiencing evolution or revolution?
13 October 2017 London
Image: Shutterstock
The securities lending industry is facing an evolution, as opposed to a revolution, attendees heard at the International Securities Lending Association (ISLA) 8th Annual Post Trade Conference.
At the conference, various panel speakers suggested that the industry was going through a period of evolution.
One panel, which included liquidity strategists and heads of collateral operations, agreed there was an evolution in the industry at the moment. A speaker, from a collateral post-trade perspective, explained that “competition in recent years has become healthier, there’s been a lot of change”.
Another industry expert agreed, commenting: “Everything comes back to technology. [Technology] is driving the evolution that changed what we did 10 to 20 years ago.”
However, one panellist asked attendees: “Can we really say that the post financial crisis is over and that post-crisis regulatory agenda is really complete?”
According to the speaker, “there may still be room for more revolution.” He explained: “What will happen if Securities Financing Transactions Regulation (SFTR) goes wrong? We could be looking at European Market Infrastructure Regulation (EMIR) III.”
At the conference, various panel speakers suggested that the industry was going through a period of evolution.
One panel, which included liquidity strategists and heads of collateral operations, agreed there was an evolution in the industry at the moment. A speaker, from a collateral post-trade perspective, explained that “competition in recent years has become healthier, there’s been a lot of change”.
Another industry expert agreed, commenting: “Everything comes back to technology. [Technology] is driving the evolution that changed what we did 10 to 20 years ago.”
However, one panellist asked attendees: “Can we really say that the post financial crisis is over and that post-crisis regulatory agenda is really complete?”
According to the speaker, “there may still be room for more revolution.” He explained: “What will happen if Securities Financing Transactions Regulation (SFTR) goes wrong? We could be looking at European Market Infrastructure Regulation (EMIR) III.”
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