This glossary is supplied by
SBL:
Securities lending and borrowing.
Securities-orientated repo trade:
Transaction motivated by the desire of one counterpart to borrow securities and of the other to lend them. See also Cash-orientated repo trade.
Securities Rankings Tables:
Within the market commentaries there are Security Rankings showing the top 10 securities per market. We assessed each market on an individual
basis and used the following methodology- We calculated the top ten securities for the specific market ranked by Group Average Total Daily Return
(absolute figures).
Shaping:
A practice whereby delivery of a large amount of a security may be made in several smaller blocks so as to reduce the potential consequences of a
fail. May be especially useful where partialling is not acceptable. Securities Lending Return to Lendable (SLRTL): The revenue from securities lending, scaled by the lendable assets, in Basis Points.
SL Fee:
The weighted average intrinsic securities lending fee of the loans the group has in the security category, in Basis Points.
Specials:
Securities that for several reasons are sought after in the market by borrowers. Holders of special securities will be able to earn incremental income
on the securities by lending them out via repo, sell/buy, or securities lending transactions.
Spot:
Standard non-dollar repo settlement two business days forward. This is a money market convention.
Stock situation:
See corporate event.
Substitution:
The practice in which a lender of general collateral recalls securities from a borrower and replaces them with other securities of the same value.
TBMA/ISMA Global Master Repurchase Agreement (GMRA):
The market-standard document used for repo trading. The GMRA, whose original November 1992 version was based on the PSA Master Repurchase
Agreement, was revised in November 1995 and again in October 2000.
Term transactions:
Trades with a fixed maturity date.
Third-party lending:
A system whereby an institution lends directly to a borrower and retains decision-making power, while all administration (settlement, collateral,
monitoring and so on) is handled by a third party, such as a global custodian.
Total Balance:
The total value of assets on loan, in USD millions.
Total Daily Return:
The total daily return from both Securities Lending and Reinvestment.
Total Return to Lendable (TRTL):
The revenue from securities lending and reinvestment activity, scaled by the lendable assets, in Basis Points.
Tri Party:
The provision of collateral management services, including marking to market, repricing and delivery, by a third party. Also known as escrow.
Tri Party Repo:
Repo used for funding/investment purposes in which the trading counterparts deliver bonds and cash to an independent custodian bank or central
securities depository (the “Tri Party Custodian"). The Tri Party Custodian is responsible for ensuring the maintenance of adequate collateral value,
both at the outset of a trade and over its term. It also marks the collateral to market daily and makes margin calls on either counterpart, is required.
Tri Party repo reduces the operational and systems barriers to participating in the repo markets.
Utilisation:
The total value of assets on loan over the total value of holdings, expressed as a percentage.
Value at Risk (VaR):
A technique used to estimate the probability of portfolio losses based on the statistical analysis of historical price trends and volatilities.
