This one-day course provides a “behind-the-scenes” perspective of a business that has experienced record levels of growth, producing a critical source of revenue for both the buy-side and the sell-side of financial industry. It is intended for an audience who is interested in receiving an overview of the securities lending business, including the motivation of participants, the lifecycle of a securities lending transaction, and resulting risks.
The main types of securities lending transaction activity will be covered, including stock borrow/loan, repo/reverse repo, tri-parties, buy/sell backs, and dollar rolls. Participants will gain perspective on the historical evolution of this market, its place in the international financial markets today, as well as regulatory considerations, both for the US markets and abroad.
The role of institutions, investment managers, bank broker/dealers, custodians, prime brokers and industry organizations such as clearing houses and centralized securities depositories will be examined. The program will also provide insight into the “Lessons Learned” from the recent global financial crisis, and trends in the securities lending business in the post-Lehman era.
By the end of the course, participants will be able to:
- Discuss the securities lending market including:
- Identifying participants and their different motivations
- Explaining reasons for borrowing/lending
- Recognize and comprehend the different types of securities lending transactions
- Explain the lifecycle of a securities lending transaction
- Review and assess collateral management
- Identify and discuss risk management and regulatory considerations
- Review applicable case studies
- Fundamentals of the Capital Markets / Securities Industry
- Equity Markets
- Fixed Income or equivalent knowledge
Advance Preparation: None
Computers and Financial Calculators: N/A
Recommended CPE Credits: 7