Securities lending

Our mission is to simplify relationships between participants and offer an additional source of performance for your investments

We are considered a major player and a leading specialist in the securities lending markets. Our securities lending program is built on close relationships that have been established with our counterparties. The objective of our program is to optimize the positions in your portfolios and contribute towards providing an additional source of performance through income generation while managing associated risks.

The 3 pillars of our model

Flexibility

Ability to operate an ‘agency’ or ‘principal’ model

Dedicated infrastructure

Front to back STP chain

Comprehensive control framework

Secure framework

Optimize market opportunities within a flexible framework

We aim to provide you with attractive market opportunities at the best price while benefitting from economies of scale through volumes traded for specific securities.

We have the ability to operate through both an agency and principal model. Through our agency model you are directly exposed to counterparty risk. Through our principal model, we act as sole counterparty to the trade. Our principal model strives to avoid excessive bilateral relationships between portfolios and counterparties, thereby limiting flows, settlement costs, and related risks.

Our principal model provides access to a deep and diverse set of counterparties in addition to offering greater flexibility for collateral management (tri-party vs bilateral)

 

 

Minimize and control risks

You are able to define both securities eligible for lending transactions and the associated risk policies in advance. Procedures in place are designed to restrict both credit and operating risks.

  • We only work with first-tier bank counterparties and all transactions are governed by contracts that represent market standards: Global Master Repo Agreements for repos and Global Master Securities Lending Agreements for securities lending
  • Transactions are 100%-collateralized (triggered above 200 K EUR) and margin calls are carried out daily
  • Additional oversight is ensured by second-level controls and reporting procedures that are managed by our Compliance, Internal Control and Risk Management teams

Benefit from a dedicated infrastructure and a team of specialists

Our front to back STP chain is supported by specialised software packages and proprietary front office tools

Four traders averaging 10 years of experience are dedicated to your needs. Five middle office staff also work permanently and exclusively for our security lending activity.

Use of the Equilend and Bondlend platforms ensures market visibility and access. All lending and repo transactions are booked and sent by STP to counterparties and portfolios, using the dedicated CALYPSO system

Our operational security lending process

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  • 1/ Transaction set-up

    Matching of borrowing/repos with lending/repos
  • 2/ Management of events during transaction life-span

    Partial returns of securities Daily margin calls for counterparties Corporate actions and dividend collection
  • 3/ Daily/monthly processing

    Transaction accounting Transmission of settlement instructions
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security lending process

" Our process strives to optimise your positions while ensuring pricing efficiency for the duration of the security lending transaction. Our focus is also on providing a robust framework to strictly control associated sources of risk"

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Security Lending Team