ISLA conference: more than just data
20 June 2013 Prague
Image: Shutterstock
Trade repositories will not reduce the potential for systematic risk in the securities lending market, according to an audience survey at the International Securities Lending Association’s (ISLA’s) annual conference in Prague.
Warehouses of securities lending transaction data—similar to those for OTC derivatives markets, whose creation was legislated in the US Dodd-Frank Act and the European Market Infrastructure Regulation—are not yet a reality, but are already being discredited.
More than half of attendees participating in ISLA’s live survey doubted their ability to reduce the potential for systematic risk, with panellist Richard Thompson of Northern Trust saying that regulators’ focus on data might be missing the point of transparency.
He said that more data does not mean better transparency: “[It's] not just about data; it’s about context and intent.”
Rather than trying to create trade repositories for specific transaction types such as securities lending, regulators should focus on the system as a whole, he said.
“If you take a product-specific view of the world, you are missing the intent … regulators should think in joined up terms.”
Warehouses of securities lending transaction data—similar to those for OTC derivatives markets, whose creation was legislated in the US Dodd-Frank Act and the European Market Infrastructure Regulation—are not yet a reality, but are already being discredited.
More than half of attendees participating in ISLA’s live survey doubted their ability to reduce the potential for systematic risk, with panellist Richard Thompson of Northern Trust saying that regulators’ focus on data might be missing the point of transparency.
He said that more data does not mean better transparency: “[It's] not just about data; it’s about context and intent.”
Rather than trying to create trade repositories for specific transaction types such as securities lending, regulators should focus on the system as a whole, he said.
“If you take a product-specific view of the world, you are missing the intent … regulators should think in joined up terms.”
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