Ed Tyndale-Biscoe

Nov 27, 2024 | iongroup.com | Ed Tyndale-Biscoe

Although post-financial crisis regulation was targeted at OTC derivatives, both securities lending and repurchase agreements (repos) have been affected by the changes made to the way collateral is administered and posted. It required a different approach along with the necessary upgrade to systems and processes. Overall, collateral management is the process of managing assets pledged by one party to another to mitigate credit risk and minimise the effects of potential default.

Nov 13, 2024 | iongroup.com | Ed Tyndale-Biscoe

Securities lending is a crucial practice in financial markets that enhances liquidity and supports diverse trading activities. By lending shares of stock, commodities, or other securities to investors or firms, securities lending facilitates a range of market operations, from short selling to meeting settlement obligations. During the loan period, the borrower provides collateral—such as cash or other securities—while the title and ownership of the securities are temporarily transferred.

Oct 30, 2024 | iongroup.com | Ed Tyndale-Biscoe

The repurchase agreement or repo market is one of the largest and most actively traded sectors in the short-term markets and an efficient source of funding for dealers and other types of financial institutions. It is a contractual arrangement between two parties, where, typically to raise cash, one agrees to sell securities (collateral) to another at a specified price with a commitment to buy them back later for another, usually higher specified price.

Oct 21, 2024 | iongroup.com | Ed Tyndale-Biscoe

Key TakeawaysEC is reinvigorating the push for a Capital Markets UnionFragmented markets are hampering efforts to meet green targetsFacilitating securities lending and borrowing is critical to successThe European Commission’s (EC) efforts to establish a Capital Markets Union (CMU) have been hampered by notoriously slow bureaucracy and a series of political, economic, and health events, including the COVID-19 pandemic and the war in Ukraine.

Oct 16, 2024 | iongroup.com | Ed Tyndale-Biscoe

Key TakeawaysVolatility and macroeconomics prompt rethink of finance modelsThe lines between securities lending and repo are blurringAutomation, electronification, and new data tools will be key driversSecurities lending and repo transactions may have distinctive characteristics, but they are increasingly being used in tandem due to the demand for flexibility and enabled by advances in technology.