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Global Securities Lending Fee: £1,500 + VAT
London - UK
This two day course is targeted at those who have a solid understanding of securities lending fundamentals, and are looking to obtain a more complete view of the complexities of the business, where it is today and where it may be headed in the coming years. Building on delegates knowledge going into the course, the trainer will examine where securities lending fits into the world of proprietary trading, hedge fund activity and prime brokerage and put it into a wider context of the financial marketplace. Course participants will be brought up to date on new developments across markets, asset classes and trading venues and have an opportunity to discuss and debate the challenges ahead for the industry. Will include a discussion of latest Financial Stability Report on Shadow Banking and the impact on securities lending.
  
10 - 11 April 2018 London, Liverpool Street
 
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Course Director(s)
Sarah Nicholson
 
Guest Speaker(s)
Andy Dyson - International Securities Lending Association As the date of the next course appraoches, other speakers may be announced.
Brilliant, professional teacher who covered everything I'd hoped for.
Dorthe Enevoldsen, Nordea
 
What You Will Learn Is This Course Right For You?  
This course explains the mechanics of securities lending as well as the motivations of the various market players. It focuses on how the economic benefits of securities ownership are retained even as legal title is transferred. The course describes and assesses the various lending options that are available and then examines the borrower's perspective and the trading strategies that drive securities lending. Delegates will also gain an understanding of why borrowers reward lenders for collateral flexibility. Following a review of the risks incurred in a securities lending programme, and the protections offered by good documentation, the course explains the different routes to the lending market and provides a comparative review of the main electronic securities lending exchanges and their impact on the industry.
 
Course Overview    
Background and history of securities lending
Introduction
➢ Origins of securities lending
➢ Growth of securities lending as a revenue generating business

Market structure and participants
➢ Examination of the market structure and participants
➢ Different roles, responsibilities and involvement
➢ What is a Beneficial Owner and their role
➢ What is a Agent Lender and their role
➢ All about Borrowers
➢ All about Hedge Funds
➢ What is a Vendor and their role
➢ Where securities lending touches the equity and bond markets
➢ Bond and money markets

Hedge funds and proprietary traders
➢ Who are the users of borrowed securities
➢ Differences and similarities between hedge funds and other proprietary traders
➢ Most important hedge fund strategies from a securities lending point of view
➢ Common fears and questions

Prime Brokerage (PB)
➢ Definition of Prime Brokerage
➢ Relationship between PB and Securities Lending
➢ Why do hedge funds use PBs?
➢ Impact of Lehman default on PB business and securities lending
➢ How the voice works voice techniques

Short selling and securities lending
➢ Vital parts of the global capital markets or the devils tools?
➢ Examination of short selling bans and academic evidence assessing the success/failure of regulatory restrictions.

Drivers of borrowing demand
➢ Looking at the different reasons why borrowers borrow.
➢ Review of several trading strategies and how securities lending fits into the picture

EXERCISE: Traders and borrowing motivations

Securities lending market statistics
➢ Data and statistics which show current volumes and historical trends by asset class.

Collateral choices and alternatives
➢ Cash versus non-cash collateral
➢ Reinvestment of cash collateral
➢ Development of tri-party collateral
➢ Mechanics of tri-party collateral in securities lending and tri-party repos
➢ Fixed income vs. equity
➢ Haircuts
➢ Thresholds
➢ Legal Aspects
➢ Infrastructure and Requirements

Review of credit and liquidity crisis
➢ How the events of 2007-2009 impacted securities lending
➢ How did losses arise in securities lending?

Financing in the new world order
➢ Securities lending collateralization used to be straightforward. Todays rules and regulations and the cost implications of decisions in a collateralized finance world adds new complexity. Balance sheet and capital are scarce resources and are impacted by financing decisions.

EXERCISE: Collateral Allocation

Exchange traded funds and securities lending
➢ The four ways in which ETFs touch the securities lending world.

Emerging securities lending markets
➢ Key conditions that need to be resolved before a market can be an open lending market
➢ New market additions in recent years and markets of the future

Electronic trading in securities lending
➢ Securities lending remains an over the counter business where the majority of trades are done bilaterally. Yet electronic order matching and trading systems are having an increasing influence on the business. Will the trend continue? At the same pace, slower or faster?

Regulatory involvement in securities lending
➢ How has regulation affected securities lending and what is on the horizon from a regulatory point of view

Central counterparties for securities lending
➢ A controversial subject. CCPs are much loved by regulators in the post-Lehman environment, yet they still are not embraced by the securities lending market. Explore the issues, challenges, developments and opportunities for CCPs in securities lending.

Alternatives to securities lending
➢ Short selling and securities lending isnt the only combination that helps traders get short exposure. This section looks at alternative methods that traders are using as a substitute to securities lending.

EXERCISE: Lender Selection Exercise

Summary and Conclusion

Extremely useful and informative. Well structured and presented with case studies to help put theory into practice.
Marie Main, Scottish Widows
 

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