ISLA Insights

EU Parliament aligns on T+1 settlement, SFT exemption

The European Parliament has drafted a proposal to amend the Central Securities Depositories Regulation for a T+1 settlement cycle, aligning with a similar proposal from EU member states. Both proposals include an exemption for securities financing transactions, and negotiations for the final text are expected in early June. MLex (06 May.) Read more

08 May 2025

BoE sec lending committee notes busy start to 2025

The Bank of England's Securities Lending Committee minutes from March show a busy start to 2025, driven by geopolitical changes and strong demand for high-quality liquid assets. The committee discussed diversity, data integrity, and the impact of the UK T+1 settlement regime, noting increased recalls and automation. Finadium (05 May.) Read more

08 May 2025

BoE to link systemic, firm-level stress tests

The Bank of England plans to merge its new system-wide exploratory stress test with firm-level stress assessments into a unified framework to better capture interconnected risks across the financial system. Meanwhile, the European Central Bank aims to expand its models to include central counterparties, reflecting growing concerns over systemic vulnerabilities. Risk (subscription required) (29 Apr.) Read more

08 May 2025

EU concerns grow over US Basel III implementation

European MEPs are urging the European Commission to revisit its "equivalence" decision on US banking rules, citing its stalled implementation of Basel III reforms. A reversal could limit US banks' access to EU markets, highlighting rising transatlantic regulatory tensions. Risk (subscription required) (01 May.) Read more

08 May 2025

Global securities lending revenue rises 1.2% in April

Global securities lending revenue reached $856 million in April, a 1.18% increase compared to the same month last year, according to EquiLend Data & Analytics. Interdealer financing rose 3%, while global equity revenue fell 2% because of a 13% drop in fees. The Netherlands led the EMEA region with a 40% revenue increase, and South Korea and Hong Kong showed significant gains in the Asia-Pacific region. Securities Finance Times (06 May.) Read more

08 May 2025

S&P: Asian equities, ETFs drive sec lending revenue

Securities lending revenues rose 4% year-over-year in April to $1.08 billion, driven by significant growth in Asian equities and exchange-traded funds, according to S&P Global Market Intelligence. Asian equity revenues surged 35%, with notable increases in Hong Kong and South Korea, while ETF fees rose 41%. S&P Global (05 May.) Read more

08 May 2025

OCC sees 8.4% rise in daily loan value for April

The Options Clearing Corporation reported an 8.4% year-over-year increase in average daily loan value for securities lending trades in April, reaching $174.9 billion. Total securities lending transactions rose 32.1% to 325,116. Overall, OCC saw a 24.3% increase in volume for futures and options, driven by a 28.8% rise in ETF options and a 23.2% increase in equity options. Securities Finance Times (05 May.) Read more

08 May 2025

Sec finance in Saudi Arabia: Vision 2030's impact

Saudi Arabia's securities finance market is gaining momentum, driven by Vision 2030 and regulatory changes, according to experts at the Securities Finance Times Middle East Symposium. The primary market, particularly IPOs, is a major activity driver, and international investment interest is growing. Challenges include the need for robust infrastructure, education and balancing onshore and offshore supply. Securities Finance Times (02 May.) Read more

08 May 2025

Financial system tested by geopolitical, economic shifts

The financial system has shown resilience amid recent crises, as the banking system has strengthened because of overhauls to increase capital and liquidity levels. However, disruptions in global trade, higher public debt levels and potential geopolitical tensions are straining the system. "Clients are gripped by uncertainty and fear of reprisals," says Anna Pinedo, a partner at law firm Mayer Brown. "There is a hesitancy to make investment decisions. Boards and management teams are particularly fearful that they could be targeted because of decisions they make. It is a very difficult climate to operate in." Financial Times (02 May.) Read more

08 May 2025

DTCC launches tokenized collateral platform

DTCC has launched a tokenized collateral platform, aiming to modernize the $16 trillion repo market by reducing settlement times and boosting global liquidity. Industry participants view it as a major breakthrough in linking traditional finance with DeFi, though legal and regulatory clarity remain key hurdles. Markets Media (06 May.) Read more

08 May 2025

Experts: Automation key to future of sec finance

Automation is a key driver of innovation in securities finance, helping to free up resources for higher-value tasks and reducing risk, according to a panel at the Securities Finance Times Innovation Summit. Panelists said leadership must foster an environment where team members feel comfortable sharing ideas, and that well-thought-out proposals should be presented to management to gain buy-in. Securities Finance Times (05 May.) Read more

08 May 2025

FCA outlines sweeping regulations for digital asset market

The UK Financial Conduct Authority (FCA) has introduced a comprehensive set of regulations aimed at overseeing the digital assets market, marking its first significant move to regulate this space. The rules are designed to bring trading platforms, intermediaries, and crypto asset lenders under the FCA's supervision. The objective is to provide adequate consumer protection while promoting a competitive and safe environment for crypto growth. CoinDesk (UK) (02 May.) Read more

08 May 2025

You could figure out anything about a person if you just tried hard enough.

Celeste Ng, writer May is Asian American, Native Hawaiian, and Pacific Islander Heritage Month Read more

08 May 2025