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
NEX Regulatory Reporting made trade repository under EMIR
24 November 2017 | London | Reporter: Jenna Lomax
The trade repository, which will be based in Stockholm, Sweden, will prepare NEX for its trade operations post Brexit
Al Ramz Capital gains short selling licence
24 November 2017 | Abu Dhabi | Reporter: Jenna Lomax
Al Ramz Capital is one of the first investment providers to offer short-selling in the UAE
BNP Paribas bolsters its senior agency lending roster
24 November 2017 | London | Reporter: Drew Nicol
Adnan Hussain moved from RBC to take up a role as global head of agency lending and head of market and financing services in the UK for BNP Paribas
Hedge funds continue 2017 run
23 November 2017 | Madrid | Reporter: Drew Nicol
Global AUM of hedge funds rose 24 percent to $3.2 trillion in the past two years, according to data captured by IOSCO’s latest market survey.
Goldman Sachs appointed by Thrivent for agent lending
23 November 2018 | Minneapolis | Reporter: Jenna Lomax
Thrivent Financial has appointed Goldman Sachs as it new lending agent
ICMA maps repo and cash bond operations
22 November 2017 | Zurich | Reporter: Zsuzsa Szabo
ICMA has launched a free-to-read mapping directory for more than 80 technology solutions for repo and cash bond operations
FCA publishes MiFID II guide
22 November 2017 | London | Reporter: Jenna Lomax
The guide focuses on the regulatory regime in MiFID II for trading venues and data reporting services providers