ISLA: regulatory concerns
24 June 2015 Lisbon
Image: Shutterstock
The International Swaps and Derivatives Association Resolution Stay Protocol is a major concern for the securities financing industry, according to a panel at the annual International Securities Lending Association (ISLA) conference in Lisbon.
The protocol is essentially legislation that allows regulators to take control of ailing financial institutions and freeze activity while they reconstruct them. It is currently being implemented and regulators have asked for similar powers to be embedded in securities finance agreements.
The Central Securities Depositories Regulation (CSDR) also has the potential to affect securities financing transactions, particularly with the revised guidelines from the European Securities and Markets Association regarding mandatory buy-ins and settlement times.
Another concern for the industry is the rolling implementation of the Basel III guidelines, which are particularly hitting brokers.
In the UK, the Financial Conduct Authority is considering how to implement revisions to the EU Transparency Directive that will require long-standing shareholders of major companies to disclose details of their securities finance transactions.
The protocol is essentially legislation that allows regulators to take control of ailing financial institutions and freeze activity while they reconstruct them. It is currently being implemented and regulators have asked for similar powers to be embedded in securities finance agreements.
The Central Securities Depositories Regulation (CSDR) also has the potential to affect securities financing transactions, particularly with the revised guidelines from the European Securities and Markets Association regarding mandatory buy-ins and settlement times.
Another concern for the industry is the rolling implementation of the Basel III guidelines, which are particularly hitting brokers.
In the UK, the Financial Conduct Authority is considering how to implement revisions to the EU Transparency Directive that will require long-standing shareholders of major companies to disclose details of their securities finance transactions.
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