Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

Operational Management of Securities Lending

Operational Management of Securities Lending

Richard Comotto

30 years: Money markets

In this video, Richard explains the role of third-party service providers in managing securities lending. He also outlines the various services that these providers offer, including trading platforms, market data aggregators, third-party post-trade process management agents, and tri-party collateral management agents.

In this video, Richard explains the role of third-party service providers in managing securities lending. He also outlines the various services that these providers offer, including trading platforms, market data aggregators, third-party post-trade process management agents, and tri-party collateral management agents.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Operational Management of Securities Lending

6 mins 10 secs

Overview

Securities lending is exposed to a lot of operational risk, making management challenging for lenders. Late recalls and failure to claim income are common issues whilst delivery of securities while minimising settlement risk is also challenging. Third-party service providers offer automation, expertise, and economies of scale to help lenders manage their lending and collateral. Automated trading systems and posting inventory can also assist with the negotiation of loans. Third-party providers also manage post-trade events, billing borrowers for fees and managing the loan itself. They can provide data to market data aggregators and take regulatory tasks such as agency lending disclosure or ALD and calculating exposures

Key learning objectives:

  • Understand the main operational risks associated with securities lending

  • Outline the role of third-party service providers in managing securities lending

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary

Why is operational risk so prevalent in securities lending?

Operational risk is particularly prevalent in securities lending due to the numerous life-cycle events that are involved, which can be complex and require significant management. These events may include the origination and structuring of loans, the negotiation of loan terms, the delivery and receipt of securities and collateral, and the management of events such as re-rates and manufactured payments. 

The management of these events can be challenging for lenders, particularly for those who lack the necessary infrastructure, leading to a greater likelihood of operational risk. As a result, many lenders outsource the processing of securities lending to third-party service providers who can offer expertise, automation, and economies of scale.

What role do third-party service providers offer in managing securities lending?

Third-party service providers play a crucial role in managing securities lending by offering various services that assist with different aspects of the lending process. These providers include trading platforms, market data aggregators, third-party post-trade process management agents, and tri-party collateral management agents. 

Trading platforms offer automated trading systems that assist with loan negotiation, while market data aggregators collect securities lending data and disseminate it to subscribers. 

Third-party service providers manage life-cycle events of loans, reconcile settlement instructions, and manage post-trade events such as billing borrowers for fees and issuing pre-advice for manufactured payments. They can also manage the loan itself, monitor returns and records, and take over certain regulatory tasks such as assisting with agency lending disclosure.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Richard Comotto

Richard Comotto

Senior Visiting Fellow at the ICMA Centre at the University of Reading, consultant to the International Capital Market Association (ICMA) and its European Repo and Collateral Council (ERCC). Technical expert to the IMF, Asian Development Bank and Frontclear market development company on money market and repo market development in Asia and Africa.

There are no available videos from "Richard Comotto"