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
EU watchdogs lay down the law on VM deadline
24 February 2017 | Brussels | Reporter: Drew Nicol
The EU supervisory authorities have chastised the union’s financial services industry for failing to meet the already delayed deadline for exchanging variation margin
DB: No light at end of the tunnel for EU repo
23 February 2017 | Frankfurt | Reporter: Drew Nicol
Hard pressed European repo desks should not hold out hope of respite from the European Central Bank’s bond purchase programme in March just because inflation rates are on the rise, according to Deutsche Bank analyst Jochen Möbert
Lombard completes last piece of Colline services puzzle
23 February 2017 | London | Reporter: Drew Nicol
Lombard Risk has bolted on a new exchange-traded derivatives module to its flagship Colline platform
OFR: Margin requirements must rise to avoid amplifying market shocks
22 February 2017 | London | Reporter: Drew Nicol
Market regulators must raise margin requirements for over-the-counter derivative transactions in order to address their procyclical nature and avoid amplifying liquidity issues during stress scenarios, according to the US Office of Financial Research
Clearstream’s securities financing volumes dip
21 February 2017 | Frankfurt | Reporter: Drew Nicol
Volumes in Clearstream’s securities finance business fell 5 percent in January
Euronext taps Silva for Lisbon CEO
21 February 2017 | Lisbon | Reporter: Drew Nicol
Euronext has appointed Paulo Rodrigues da Silva as CEO of Euronext Lisbon following the departure of Maria João Carioca, effective early March
ETF lending on the rise, says M'Rabti
20 February 2017 | Brussels | Reporter: Drew Nicol
Agent lenders are “getting serious” about including exchange-traded funds in their lending programmes thanks to a transactional hurdles being removed, according to Euroclear’s Mohamed M'Rabti