Securities Lending

Description

Securities lending is a long-established practice which plays an important role in today’s capital markets by providing

liquidity that reduces the cost of trading and promotes price discovery in rising as well as falling markets. The

resultant increase in efficiency benefits the market as a whole – from the securities dealers and end investors through

to the corporate issuers which depend on efficient, liquid markets to raise additional capital.

Securities lending markets allow market participants to sell securities that they do not own in the confidence that they

can be borrowed prior to settlement. They are also used as a form of financing, through the lending of securities

against cash, forming an important part of the money markets. The ability to lend and borrow securities freely

underpins the services that securities dealers offer their customers and the trading strategies of dealers, hedge funds

and other asset managers. On the lending side, securities lending forms a growing part of the revenue of institutional

investors, custodian banks and the prime brokerage arms of investment banks. The course gives a key features of Securities Lending

Objectives

Target Audience

Prerequisites

Roadmap