Securities Lending

Basel III presents new challenges to collateral trading activities and collateral management operations. In part II of a series, GCMS’ Saheed Awan explores the impact Basel III and central clearing of OTC derivatives will have on collateral trading activities and he calls for the restricted view of collateral management to be expanded to support efforts to achieve greater efficiency through improved and centralised processing. 

Regulators and bank supervisors have become investment advisors!

Investment managers can transform collateral management into a profit centre by generating returns on collateral through securities lending activities. ISC's Sean Sprackling explains how the buy side can adopt this method used widely by sell-side institutions.

Itaú BBA has selected 4sight’s Securities Finance and Collateral Management solution to support its US-based securities lending and repo business, Itaú BBA USA Securities.

Clearstream and Citi have formalised their plans to a customised tri-party collateral management solution that Citi will offer to its customers. The two companies have now signed a Letter of Intent to move ahead with their collaboration to enable joint customers to benefit from Clearstream’s award-winning Global Liquidity Hub, an integrated suite of collateral management and securities lending services.

• Pilot phase to commence operation on November 22
• Unique clearing service to mitigate counterparty risk and increase capital efficiency
• Partnership with leading service providers for trading and collateral management

Eurex Clearing, one of the leading CCPs globally, announced today that it will go live with Europe’s first central counterparty (CCP) service for the bilateral securities lending market on 22 November. In order to ensure a smooth and efficient market establishment, Eurex Clearing’s lending CCP will commence

Eurex Clearing and Pirum Systems sign Connectivity Agreement to facilitate access to Eurex Clearing’s Lending CCP / Market participants will be able to leverage Pirum’s automation platform to transmit bilaterally negotiated transactions to Eurex Clearing

4sight Financial Software, a leading provider of software and consultancy to the Securities Finance and Collateral Management markets, has hired Antonio Neri as executive director. Antonio will head up the sales, pre-sales, marketing and account management team globally.

Prior to joining 4sight, Antonio was formerly Head of EMEA Sales at Lombard Risk Management. He brings with him many years of experience in collateral management and OTC derivatives valuation systems for the financial markets.

BMO Capital Markets has expanded its use of SunGard’s Global One, a suite of securities finance solutions for trade processing, operations and reporting. A SunGard customer since 2009, BMO Capital Markets rolled out Global One for its Global Equity Finance business. Global One already supports the firm’s U.S. and international business.

4sight Financial Software has recently added new functionality to its Xpose Collateral Management system. The software is currently used by eight of 4sight’s clients worldwide and provides a multi-product collateral management system for Securities Lending, Repo, Exchange Traded and OTC Derivatives collateral.

The new features include:

• Additional collateral optimisation and allocation tools

• Global trading and collateral inventory management with a single user-driven view of all global exposures

Absa Capital, one of South Africa’s leading financial institutions, has upgraded its versions of SunGard’s Global One, a suite of securities finance solutions for trade processing, operations and reporting. Absa Capital uses Global One interfaced with STRATE, South Africa’s electronic settlement system, for processing transactions on the Johannesburg Stock Exchange and off-market trades.