GPIF requests information on effects of securities lending suspension
04 April 2022 Japan
Image: Olivier_Le_Moal/stock.adobe.com
The Japan-based Government Pension Investment Fund (GPIF) has issued a Request for Information (RFI) on quantitative analytical methods relating to the effects of its stock lending suspension to the market.
GPIF says: “Given the time that has passed since the suspension — and the market data has been accumulated as a result — GPIF would like to consider conducting quantitative analyses on the effect of its stock lending suspension on the market.”
In December 2019, the administrative agency announced that it would no longer lend out its foreign equity assets, considering the practice to be too ‘opaque’ and incompatible with its responsibilities as a long-term investor.
On taking the decision to suspend its stock lending activities, it announced that its Board of Governors would conduct a subsequent review to assess the effects of this decision.
In issuing an RFI, the GPIF has asked respondents to share their views and information on quantitative analytical methods that may be employed to assess the impact of this stock lending suspension on the market. The GPIF will finalise the focus and methodology for its analysis, having considered the data and recommendations that it receives through this RFI.
GPIF says: “Given the time that has passed since the suspension — and the market data has been accumulated as a result — GPIF would like to consider conducting quantitative analyses on the effect of its stock lending suspension on the market.”
In December 2019, the administrative agency announced that it would no longer lend out its foreign equity assets, considering the practice to be too ‘opaque’ and incompatible with its responsibilities as a long-term investor.
On taking the decision to suspend its stock lending activities, it announced that its Board of Governors would conduct a subsequent review to assess the effects of this decision.
In issuing an RFI, the GPIF has asked respondents to share their views and information on quantitative analytical methods that may be employed to assess the impact of this stock lending suspension on the market. The GPIF will finalise the focus and methodology for its analysis, having considered the data and recommendations that it receives through this RFI.
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