Global PSSL issues securities finance value chain transparency recommendations
20 July 2021 UK
Image: stock.adobe.com/Maksim_Kabakou
The Global Principles for Sustainable Securities Lending (Global PSSL) group has issued recommendations designed to boost transparency in the securities lending value chain.
Global PSSL’s seven draft recommendations, published yesterday and open for consultation until the end of August 2021, detail the roles stakeholders can play in the sustainable securities lending value chain.
Designed to increase transparency in the securities lending market and provide a means for continuous review and evaluation through voluntary collaboration, the recommendations propose a monitoring role for regulators and central banks as well as international organisations.
They also provide a role for Global PSSL as a guardian of the public interest for sustainable securities lending with each recommendation, according to Global PSSL, designed to be “forward-looking, unifying and inclusive, transparent, dynamic, and aligned with Global PSSL policy themes.”
The recommendations were drafted by Roelof van der Struk of Dutch pension fund PGGM and Global PSSL CEO Radek Stech and form part of a broader review with Global PSSL contributors and regulators in Africa, Australia, the UK and the US.
Van der Struik and Stech released a joint statement on the recommendations: “Sustainable securities lending can add value to the owners of capital and the broader sustainable finance agenda.
“Fragmented and self-serving securities lending may only add value to certain best-informed and sophisticated stakeholders, and, in turn, impede progress towards a wider community supporting financial markets. Global PSSL works towards the former whilst engaging the latter.”
They add: “These recommendations are the fruit of dedicated long term work on the widespread adoption of sustainable working practices. This alignment and cooperation hold tangible value for all parties along the securities lending value chain.”
Global PSSL is a not-for-profit social enterprise that provides a hub for all key stakeholders to advance sustainable securities lending, and the broader global sustainable finance market, through market leadership, research and education, international collaboration, and tangible impact.
Global PSSL’s seven draft recommendations, published yesterday and open for consultation until the end of August 2021, detail the roles stakeholders can play in the sustainable securities lending value chain.
Designed to increase transparency in the securities lending market and provide a means for continuous review and evaluation through voluntary collaboration, the recommendations propose a monitoring role for regulators and central banks as well as international organisations.
They also provide a role for Global PSSL as a guardian of the public interest for sustainable securities lending with each recommendation, according to Global PSSL, designed to be “forward-looking, unifying and inclusive, transparent, dynamic, and aligned with Global PSSL policy themes.”
The recommendations were drafted by Roelof van der Struk of Dutch pension fund PGGM and Global PSSL CEO Radek Stech and form part of a broader review with Global PSSL contributors and regulators in Africa, Australia, the UK and the US.
Van der Struik and Stech released a joint statement on the recommendations: “Sustainable securities lending can add value to the owners of capital and the broader sustainable finance agenda.
“Fragmented and self-serving securities lending may only add value to certain best-informed and sophisticated stakeholders, and, in turn, impede progress towards a wider community supporting financial markets. Global PSSL works towards the former whilst engaging the latter.”
They add: “These recommendations are the fruit of dedicated long term work on the widespread adoption of sustainable working practices. This alignment and cooperation hold tangible value for all parties along the securities lending value chain.”
Global PSSL is a not-for-profit social enterprise that provides a hub for all key stakeholders to advance sustainable securities lending, and the broader global sustainable finance market, through market leadership, research and education, international collaboration, and tangible impact.
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