11 October 2012
Miami
Reporter: Mark Dugdale
Securities Lending default image
RMA conference on securities lending: demanding times
Hedge funds have switched their equity trading programmes to “defensive mode” as far as capital is concerned, while beneficial owners are demanding more information and transparency from their agent lenders.

The Risk Management Association's (RMA's) 29th Annual Conference on Securities Lending featured a panel on global demand trends in equity trading.

Frederick Nadd-Aubert of Credit Suisse, Peter Abric of Wells Fargo Securities, James Gerspach of J.P. Morgan, Carey Chamberlain of HSBC and Mark Payson of Brown Brothers Harriman analysed key trends from the past few years.

Nadd-Aubert said that hedge funds are going into “defensive mode” as far as capital is concerned, while the rest of the panel identified other trends.

One trend that Chamberlain has observed is that credit diversification has become a big focus. He has also seen US money managers change the way that they operate.

He said: “A lot of US money managers have pulled money out of Europe and are possibly putting it back into their home market, which is fair enough.”

Another trend is that beneficial owners are “more demanding about being informed about opportunities and emerging markets,” according to Gerspach.

Chamberlain added: “There's been a shift in how trading desks, lenders and hedge funds look at stock lending.”

Clients want research-based products as their emphases on transparency and information have increased, according to Chamberlain. Gerspach agreed, adding: “That demand has certainly taken off and multiplied in the last few years.”

The main change that Payson has identified is how clients view his firm. The firm now acts “as an advisor”, providing information and transparency on a regular basis and before trading is initiated.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Stock loan falls short for buy side as liquidity source
25 July 2017 | London | Reporter: Jenna Lomax
Securities lending was voted the least popular source of liquidity in a survey of European buy-side heads of operations
Hedge fund H1 gains best since 2009
25 July 2017 | London | Reporter: Drew Nicol
The hedge fund industry has recorded one of its strongest H1 performance periods since the financial crisis, according to data and intelligence provider Preqin
Calypso gains stake in Sernova Financial
25 July 2017 | London | Reporter: Drew Nicol
Sernova Financial, which already leverages the Calypso Cloud platform, recreates the shared infrastructure and service items of clearing brokers
RMA keynote The Mooch heads to the West Wing
24 July 2017 | Naples | Reporter: Drew Nicol
Anthony Scaramucci, who appeared as keynote speaker at last year’s RMA securities lending conference in Florida, has been appointed as the White House communications director
Northern Trust’s Q2 lending revenue stutters
24 July 2017 | New York | Reporter: Drew Nicol
Northern Trust saw its securities lending earnings fall to $24.6 million in Q2
New recruits for BNY Mellon's alternative investment team
21 July 2017 | New York | Reporter: Drew Nicol
BNY Mellon has made two senior appointments to its alternative investment services team
Euroclear achieves record-breaking H1 collateral volume
21 July 2017 | Frankfurt | Reporter: Jenna Lomax
Post-trade service provider Euroclear saw achieved "record levels" of collateral outstanding through its Collateral Highway in the first half of 2017