The Future of the Securities Lending Market: Advancing the Digital Debate
Linklaters has collaborated with the International Securities Lending Association (ISLA) on a new white paper. Linklaters originally worked with ISLA in September 2019 to publish a white paper setting out an “Agenda for Change” ISLA & Linklaters Whitepaper. This identified a vision for the future of the securities lending industry, analysing the key stages in the lifecycle of a securities lending relationship, as well as key data required and produced in each stage and the corresponding regulatory/legal requirements and processes. Since then, work has been underway across the industry to turn parts of that vision into reality. This latest paper, which includes contributions from stakeholder firms across the securities lending market, reflects on the progress made since the publication of the original white paper and considers the road ahead.
On the road ahead it seems clear that an electronic documentation platform is at the core of the delivery of the digital future the industry is calling for. Further, the delivery of this change need not require significant work or time because the platform technology is already available. The derivatives market recently deployed a similar offering onto ISDA Create, part of the Linklaters>Nakhoda CreateiQ documentation platform which enables users to generate and negotiate a broad range of documents in one place. The use of a documentation platform for securities lending documents is therefore a very achievable goal and represents a significant milestone on the road to the digital future of the securities lending market.
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