BBH was well represented at the Finadium Investors in Securities Lending Conference held in New York on April 11-12, where our experts participated in several panels. The conference aimed to bring together key players from the securities finance industry to give investors insight into the evolving regulatory environment and share ideas to improve their use of securities finance in their core asset management activities.
Some key themes emerged during the conference sessions and our discussions with other attendees:
Technology: A robust technology platform and development roadmap is crucial for agent lenders to provide efficient, high quality service to its clients. Technology allows a level of automation, efficiency, and transparency that would be otherwise impossible.
Collateral Flexibility: The industry continues to discuss non-cash collateral for US Registered Funds. Equities as collateral, although not an approved collateral type for US registered Funds, continue to be a hot topic of discussion. US Treasuries as collateral were also discussed, specifically to maintain lower margin trades for brokers wishing to pledge instead of cash.
As US interest rates rise, beneficial owners are continuing to explore different cash
collateral options such as prime-like vehicles or other alternative cash investment
Indemnification: The need for Indemnification continues to be debated, but remains a key factor in Board program approval.
BBH would like to extend our thanks to Finadium for hosting a great event.