ISLA: No good reason why securities lending should not be done in Spain
19 June 2019 Madrid
Image: Shutterstock
There is no good reason why securities lending should not be done in Spain, according to a panellist at the International Securities Lending Association (ISLA) conference in Madrid.
Although Securities lending in Spanish securities is common practice, a panellist explained that an opportunity which the industry watches closely is the relaxation of current restrictions that prevent local domiciled mutual funds from fully engaging in securities lending.
The panellist said that this prevents the growing market from fully capitalising on trading opportunities such as high-quality liquid asset lending.
The panel explained that if introduced, it would be a step closer to achieving a greater harmonisation across EU regulatory frameworks that address securities lending for similar fund types in other domiciles.
In terms of opportunities, one panellist suggested that it would provide additional liquidity to the marketplace by making available securities that are otherwise shut away in portfolios.
The speaker added that it would also generate additional income for fund investors, which can be significant in respect of comparable fund performance.
Another speaker suggested that there is a confidence this change can go through before the year ends. While another explained that “it is ready, we just need to get it on the agenda and signed off”.
Although Securities lending in Spanish securities is common practice, a panellist explained that an opportunity which the industry watches closely is the relaxation of current restrictions that prevent local domiciled mutual funds from fully engaging in securities lending.
The panellist said that this prevents the growing market from fully capitalising on trading opportunities such as high-quality liquid asset lending.
The panel explained that if introduced, it would be a step closer to achieving a greater harmonisation across EU regulatory frameworks that address securities lending for similar fund types in other domiciles.
In terms of opportunities, one panellist suggested that it would provide additional liquidity to the marketplace by making available securities that are otherwise shut away in portfolios.
The speaker added that it would also generate additional income for fund investors, which can be significant in respect of comparable fund performance.
Another speaker suggested that there is a confidence this change can go through before the year ends. While another explained that “it is ready, we just need to get it on the agenda and signed off”.
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