ISLA launches public register for performance measurement
17 October 2023 Europe
Image: Irene/stock.adobe.com
The International Securities Lending Association (ISLA) has launched a public register for its Securities Lending Performance Measurement.
Market participants will now be able to view a list of all ISLA member firms that have pledged to integrate the principles outlined in the industry guidance.
In September 2020, ISLA issued industry guidance through the Securities Lending Performance Measurement to create an industry standard that is designed to improve the quality and standardisation of data used for peer comparisons.
Ultimately, it aims to provide greater transparency for market participants.
The guide defines the standards with respect to both data aggregation and calibration of performance-related metrics, focusing on data governance, securities lending contribution to an underlying portfolio, and relative performance of securities lending.
Commenting on the launch, Farrah Mahmood, director of regulatory affairs at ISLA, says: “It is encouraging to see so many firms get behind this initiative to promote greater transparency when it comes to returns generated from securities lending, for beneficial owners to effectively compare peers.
“Differences in the way that firms report data can often lead to distorted performance outcomes, and this guide creates a level playing field to ensure consistency across the market.”
Brooke Gillman, global head of client relationship management at eSecLending, adds: “Data aggregation tools in the market allow us to better understand revenue and performance for our client programmes. Creating consistent and reliable standards will further increase accuracy and reliability for peer comparisons that are integral to understanding performance.”
George Dennant, agency securities finance product manager at J.P. Morgan Chase Bank, comments: “We see this as a big step forward for the industry. Adoption and integration of these best practice guidelines across the market can benefit all stakeholders through greater data comparability and transparency, ultimately providing users with higher quality and more useful data.”
Market participants will now be able to view a list of all ISLA member firms that have pledged to integrate the principles outlined in the industry guidance.
In September 2020, ISLA issued industry guidance through the Securities Lending Performance Measurement to create an industry standard that is designed to improve the quality and standardisation of data used for peer comparisons.
Ultimately, it aims to provide greater transparency for market participants.
The guide defines the standards with respect to both data aggregation and calibration of performance-related metrics, focusing on data governance, securities lending contribution to an underlying portfolio, and relative performance of securities lending.
Commenting on the launch, Farrah Mahmood, director of regulatory affairs at ISLA, says: “It is encouraging to see so many firms get behind this initiative to promote greater transparency when it comes to returns generated from securities lending, for beneficial owners to effectively compare peers.
“Differences in the way that firms report data can often lead to distorted performance outcomes, and this guide creates a level playing field to ensure consistency across the market.”
Brooke Gillman, global head of client relationship management at eSecLending, adds: “Data aggregation tools in the market allow us to better understand revenue and performance for our client programmes. Creating consistent and reliable standards will further increase accuracy and reliability for peer comparisons that are integral to understanding performance.”
George Dennant, agency securities finance product manager at J.P. Morgan Chase Bank, comments: “We see this as a big step forward for the industry. Adoption and integration of these best practice guidelines across the market can benefit all stakeholders through greater data comparability and transparency, ultimately providing users with higher quality and more useful data.”
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