The article focuses on regulatory changes in the securities finance sector, primarily highlighting the Securities Financing Transactions Regulation (SFTR) in the EU and the updated Basel III framework, which impact…
The main entity of the article is securities finance, which encompasses the processes of securities lending and borrowing. The article outlines the anticipated evolution of securities finance driven by technological…
Securities finance refers to the lending and borrowing of securities to facilitate trading, while market liquidity denotes the ease of buying or selling assets without impacting their price. The article…
Innovations in securities finance encompass advancements that improve the efficiency and effectiveness of securities lending and borrowing processes. Key technological trends include the adoption of blockchain technology, which enhances transparency…
What is the role of collateral in securities financing? Collateral in securities financing serves as a safeguard for lenders against borrower default. It reduces the credit risk associated with lending…
Repo transactions, or repurchase agreements, are short-term financial instruments where one party sells securities to another with a commitment to repurchase them at a later date for a higher price.…
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…
Securities lending is the process of loaning securities to an investor or firm, where the borrower pays a fee while the lender retains ownership rights. This practice supports short selling…
Interest rates are a critical factor influencing securities financing, affecting borrowing costs for investors and consequently impacting demand and pricing of securities. Higher interest rates typically lead to increased borrowing…
Liquidity in securities finance is essential for the smooth operation of financial markets, enabling investors to execute trades without significantly impacting prices. Key factors influencing liquidity include market depth, trading…
Victor Hargrove