“We have never been more sensitive to the political direction of travel in the countries that we operate in,” said ISLA CEO Andrew Dyson. Dyson spoke to the attendees of the International Securities Lending Association’s (ISLA) 31st Annual Securities Finance and Collateral Management Conference in Geneva. In the session entitled ‘ISLA Strategic Priorities 2024 & Beyond’, Dyson provided an overview of in-flight and imminent events set to impact the industry. One event in particular, which is set to affect the market, is the upcoming general election in the UK. Dyson said the country is going to have a “very different complexion of government”, and that the region has already begun to see that momentum “shift towards a more right-leaning populist governmental structure in Europe”. He continued to say that the sensitivity to the political direction of travel not only speaks to Europe, it applies to the UK, and it is very important in North America — where the potential arrival of another Trump administration can change a lot of the legislation landscape in front of us.” In the EU, ISLA recently published its manifesto. The new European mandate is the association’s most extensive piece of work, which discusses a plan for action and change in Europe to support the development of a capital markets ecosystem. Dyson explained: “Many of the issues I come across, whether they be in Europe or the Middle East, or in other less developed markets, are all about encouraging the market to mobilise liquidity, to create that depth of secondary market that we always fight for.” He also discussed the association’s advocacy plans and messaging strategy to further highlight the benefits that securities finance brings to the broader capital markets ecosystem. In Spain, the association has been looking to provide a more even playing field in the region, particularly around the lending of locally domiciled mutual funds. Dyson said the team had seen some movement in this area. Another point highlighted by Dyson was the formation of ISLA Americas earlier this year. He addressed the questions: why, and why now? ”He stated: “The answer to that question relates to the global nature of what we now do. Many of the member firms that we talk to tell us they have issues with particular pieces of legislation or policy that transcend the normal borders that we all grapple with. “One of the reasons that we felt it was a good idea to move into that space, was primarily to serve the needs of a growing membership base in North America.” ISLA has also welcomed its new ISLA Connects franchise, which Dyson said “continues to grow and develop”. The idea of thinking about inclusivity, particularly around younger people and people coming back to the market after some time, has hit a cord within ISLA’s member firms, the association said. The Middle East continues to be a focus for ISLA, which intends to organise an event in the region in the first half of 2025, an event Dyson referred to as “overdue”.
