The EU Benchmark Regulation is a legislative framework established by the European Union to ensure the integrity and transparency of financial benchmarks. Implemented in 2016, it applies to all benchmark…
Integrating Environmental, Social, and Governance (ESG) factors into risk management in securities finance is essential for evaluating the sustainability and ethical impact of investments. ESG criteria influence investment decisions and…
Collateral in securities lending markets is a critical mechanism that protects lenders from borrower default and ensures compensation for the risks associated with lending securities. It typically consists of cash,…
Interest rates are a critical factor influencing securities financing costs. Higher interest rates lead to increased borrowing costs for securities, resulting in higher financing expenses for traders and investors. Conversely,…
Recent developments in anti-money laundering (AML) regulations for securities finance focus on stricter compliance requirements and enhanced monitoring systems. Regulatory bodies, including the Financial Action Task Force (FATF) and the…
Custodians are financial institutions that safeguard and manage assets on behalf of clients in securities finance. They play a vital role in ensuring the safety of securities, facilitating transactions, and…
Market volatility in securities finance refers to the fluctuations in trading prices of securities over time, influenced by economic factors, geopolitical events, and investor behavior. This volatility can signal market…
The recent changes in Securities and Exchange Commission (SEC) regulations significantly impact securities finance practices, focusing on enhanced disclosure and reporting of short sales. These new regulations require firms to…
Securities Financing Transactions (SFTs) are financial transactions involving the temporary transfer of securities, including repurchase agreements, securities lending, and margin lending. These transactions facilitate liquidity management and trading strategies, with…
The LIBOR Transition signifies the global shift from the London Interbank Offered Rate (LIBOR) to alternative reference rates, impacting the pricing and valuation of financial instruments in securities financing. This…
Victor Hargrove