Securities lending is coming of age from a technology perspective, says panel
10 May 2018 London
Image: Shutterstock
Securities Lending is coming of age and maturing from a technology perspective, according to a panel at the Finadium Investors in Securities Lending conference in London.
The panel, which discussed technology, operations, and infrastructure, suggested that technology is important for any trading market or business. However, one panellist pointed out that some people are a lot more advanced than others.
Another panellist argued: “Securities Lending is coming of age and maturing from a technology perspective. Over the last couple of years, there has been a lot of flow for an automated trading platform. This is clearly the future direction of the business.”
The speaker added: “When you talk to a service provider about trading capability, it is better and more accurate in pricing, it is highly automated and very beneficial to owners.’
Another panellist said: “Certainly, there are platforms out there that are existing with the business, definitely industry-wide platforms.”
Meanwhile, in regards to data, one panellist commented: “Everything starts with data, then platforms. From my perspective, it all starts with that data.”
Advancement in technology may prove to be a huge advantage to the industry, one speaker said: “The better technology you have the more business; it will make business easier to do, and achieve better trading outcomes.’
The panel was asked, should we be addressing post-trade as an industry worldwide?
Responding to the question, one member of the panel explained: “This is one risk that keeps me awake at night, I definitely don't think it should be industry wide. When you look at the range of the system, many are still struggling with legacy systems. It’s within the legacy trading industry.”
However, another commented: “The industry, through bodies like International Securities Lending Association is trying to adopt some common standards that everyone should adhere to.”
The speaker continued: “In Australia, central clearing system is standard old. Blockchain may interest some of the problem around reconciliation, risk. We have to keep a close eye on these things that may become real. This is set to go live this year. So this is a reality.’
The panel was also confronted with the question: “With the advancement in technology does it make it harder or easier for the beneficial owner to directly access the market?”
One panellist answered: “It does and it doesn’t. Technology makes it easier for beneficial owners to access the market, in theory, it should be easier to access without a service provider.”
“We have sophisticated highly automated platforms, so effectively we are a platform ourselves. Our platforms offer lots of value-added services.”
The speaker added: “Meaning and beneficial things can be done with the technology for sure.”
In regards to securities lending, one question posed to the panel asked whether or not securities lending will ever move to a real-time trading/collateral/reporting/business.
To this, one speaker concluded: “It already is. It’s in real time, it’s credit checked in real time, you can extract the data and do what you like with it in real time. It's a real-time business.”
The panel, which discussed technology, operations, and infrastructure, suggested that technology is important for any trading market or business. However, one panellist pointed out that some people are a lot more advanced than others.
Another panellist argued: “Securities Lending is coming of age and maturing from a technology perspective. Over the last couple of years, there has been a lot of flow for an automated trading platform. This is clearly the future direction of the business.”
The speaker added: “When you talk to a service provider about trading capability, it is better and more accurate in pricing, it is highly automated and very beneficial to owners.’
Another panellist said: “Certainly, there are platforms out there that are existing with the business, definitely industry-wide platforms.”
Meanwhile, in regards to data, one panellist commented: “Everything starts with data, then platforms. From my perspective, it all starts with that data.”
Advancement in technology may prove to be a huge advantage to the industry, one speaker said: “The better technology you have the more business; it will make business easier to do, and achieve better trading outcomes.’
The panel was asked, should we be addressing post-trade as an industry worldwide?
Responding to the question, one member of the panel explained: “This is one risk that keeps me awake at night, I definitely don't think it should be industry wide. When you look at the range of the system, many are still struggling with legacy systems. It’s within the legacy trading industry.”
However, another commented: “The industry, through bodies like International Securities Lending Association is trying to adopt some common standards that everyone should adhere to.”
The speaker continued: “In Australia, central clearing system is standard old. Blockchain may interest some of the problem around reconciliation, risk. We have to keep a close eye on these things that may become real. This is set to go live this year. So this is a reality.’
The panel was also confronted with the question: “With the advancement in technology does it make it harder or easier for the beneficial owner to directly access the market?”
One panellist answered: “It does and it doesn’t. Technology makes it easier for beneficial owners to access the market, in theory, it should be easier to access without a service provider.”
“We have sophisticated highly automated platforms, so effectively we are a platform ourselves. Our platforms offer lots of value-added services.”
The speaker added: “Meaning and beneficial things can be done with the technology for sure.”
In regards to securities lending, one question posed to the panel asked whether or not securities lending will ever move to a real-time trading/collateral/reporting/business.
To this, one speaker concluded: “It already is. It’s in real time, it’s credit checked in real time, you can extract the data and do what you like with it in real time. It's a real-time business.”
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