CASLA: Automation easing sec lending workload
04 June 2016 Toronto
Image: Shutterstock
Automation of securities lending transactions has proved so successful for general collateral lending that it is increasingly being utilised for higher value “warm trades”, according to a panellist at CASLA’s Conference on Securities Lending last week.
Industry participants are asking their technology providers to let their automatic matching and lending infrastructures do more and more of the heavy lifting of day-to-day trades in order to free up traders’ time to focus on more important tasks, such as intrinsic value lending.
According to a buy-side representative, traders are having to spend more time analysing default risk brought on by an increase in buy-ins and fails, than managing regulatory compliance.
The panellist explained that of all the concerns that a trader faces every day, it’s the ones that cannot be controlled, such as fails or defaults, that are of most concern.
“We cannot be asleep at the wheel”, warned the panellist.
Industry participants are asking their technology providers to let their automatic matching and lending infrastructures do more and more of the heavy lifting of day-to-day trades in order to free up traders’ time to focus on more important tasks, such as intrinsic value lending.
According to a buy-side representative, traders are having to spend more time analysing default risk brought on by an increase in buy-ins and fails, than managing regulatory compliance.
The panellist explained that of all the concerns that a trader faces every day, it’s the ones that cannot be controlled, such as fails or defaults, that are of most concern.
“We cannot be asleep at the wheel”, warned the panellist.
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