BBH was well represented at the 15th Annual Pan Asia Securities Lending Association (PASLA) conference, held in Hong Kong the week of March 5. Tom Poppey, BBH’s Global Head of Securities Lending Product Development and Client & Program Management served as co-chair of the conference. The theme of the event was “Embracing the Future” offering attendees unique perspectives on what to expect from both regulatory and economic influences on the securities lending market.
Asia is a significant growth region for the industry and the conference’s upbeat tone reflected this sense of optimism. In addition to a host of relevant panel sessions, the conference offered an opportunity for members of our Securities Lending group to connect with the borrowers serviced by BBH’s lending program.
A number of themes emerged during the conference sessions and our discussions with other attendees:
- “Quant funds” are now noteworthy drivers of demand for our borrowers. These end borrowers value automation and speedy settlement. With this dynamic in mind, Prime Brokers were complementary of BBH’s deployment of EquiLend’s “Next Generation Trading,” an automated borrowing platform that BBH has led the market in rolling out to increase execution efficiency.
- Front office automation and greater efficiency through algorithms and AI was a recurring theme. Accurate data is key to the successful deployment of such technologies and is therefore becoming an increasingly valuable asset.
- PASLA is actively engaged with regulators to expand the number of markets in which stock loan can be conducted, with India, China, and Indonesia representing the most sizable opportunities.
- Prime Brokers continue to seek more flexibility from agent lenders in terms of the collateral they are prepared to accept. The type of collateral pledged by borrowers weighs heavily on the balance sheet efficiency of their businesses.
BBH would like to extend our thanks to PASLA and RMA for hosting a great event.