Securities lending
Abstract
In this chapter we look at the vitally important area of securities lending and borrowing. We explore the development of lending from the need to enable trades to settle on time through to the huge use of borrowed securities by hedge funds selling short in the market and we look at cash financing through repos.
We consider the process stages and look at the operational needs that must be addressed, the role of the intermediaries like custodians and CSDs, the importance of collateral management, impact of corporate actions on a loan and the general risks and associated control requirements including the securities lending agreement.
Finally we look at the development of centralised lending and possible impact ...
Get Clearing, Settlement and Custody, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
