The primary source of global securities finance news and analysis Issue 278 25 May 2021 Canada weathers the storm RBC I&TS’ Don D’Eramo and Kyle Kolasingh discuss the effects of the pandemic, ESG and automation on the Canadian securities finance market Automating Swaps Work Flow © 2020 EquiLend Holdings LLC. Swaptimization_ad_SLT_final.indd 1 1/10/20 10:29 AM Securities Finance and Collateral Management Solutions for Every Firm Optimize lending, funding and collateral decisions Reduce counterparty and operational risks Enable efficient and high-growth operations Flexible to firms of all sizes in any location Communications Meet regulatory and market requirement Technology Data and Analytics Broadridge.com © 2020 Broadridge Financial Solutions, Inc., Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. Lead Story 3 Securities Finance and Collateral Management Solutions for Every Firm ISLA adds securities finance code to CDM The International Securities Lending onboarding, contract negotiation, execution, CDM with our wider community. The addition Association (ISLA) has contributed code to the processing and ultimately termination. of our pilot work from last year within the core core Common Domain Model (CDM) database CDM is a clear statement of intent from ISLA — a single digital representation of securities ISLA’s contribution allows the recording and our friends at ISDA. trade events and life cycles. of securities loan product and transaction definitions, as well as a settlement and “As we progressively develop the combined The contribution marks the first time allocation event for cash settled ‘delivery open source cross product CDM, market Optimize lending, funding and collateral decisions components of a non-derivative product versus payment’ loan. participants will start to see the benefits of this have been contributed to the CDM, and is an important investment that will set the backdrop Reduce counterparty and operational risks “important milestone”, ISLA said, in the ongoing The new code, completed at the end of last for the future state of our markets.” Enable efficient and high-growth operations development of a truly cross-product model for year and piloted by fintech firm REGnosys, the benefit of the financial services industry. will build on the CDM first launched by ISDA chief executive Scott O’Malia comments: Flexible to firms of all sizes in any location the International Swaps and Derivatives “Having securities lending products and events Communications A CDM encodes a transaction and the events Association (ISDA) as a blueprint for how added to the CDM is an important step in Meet regulatory and market requirement Technology Data and Analytics that occur to that transaction “explicitly and derivatives are traded and managed. our shared ambition to create a single set of unambiguously”, so that common inputs lead machine-readable standards that can be used Broadridge.com to common outputs throughout the lifecycle of ISLA CEO Andrew Dyson says: “I am across asset classes. This will ultimately increase a transaction, ISLA says. Ultimately, a CDM absolutely delighted that we are now able to efficiencies for market participants, reduce costs would encode the entirety of a transaction from begin the process of sharing the power of the and enable greater levels of automation.” © 2020 Broadridge Financial Solutions, Inc., Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. www.securitiesfinancetimes.com Inside this issue Latest News 6 Sharegain launches BetterLend Latest News Cardano Risk Management teams up 8 with deltaconX 16 Canadian Securities Lending Canada Focus Strong and resilient Canada weathers the storm Known for it’s strong market, how did Canada react to the RBC I&TS’ Don D’Eramo and Kyle Kolasingh discuss the impact of the 20 significant volatility triggered by the COVID-19 pandemic? pandemic on Canadian securities finance Publisher: Justin Lawson [email protected] Fraud Spotters +44 (0) 208 075 0929 ESG: look before you leap Editor: Drew Nicol Is market enthusiasm creating a breeding ground for [email protected] 32 fraud? Short sellers think so +44 (0) 208 075 0928 Reporter: Alex Pugh Tech Titans [email protected] Securities Finance +44 (0) 208 075 0926 Technology Symposium Reporter: Maddie Saghir SFT’s online symposium took a forward-looking approach [email protected] +44 (0) 208 075 0925 38 despite the unforgettable events of 2020 and 2021 Office manager: Chelsea Bowles +44 (0) 208 075 0930 Data Analytics Marketing director: Steven Lafferty All aboard the Bund wagon [email protected] David Lewis of FIS says that a return to positive yields is Published by Black Knight Media Ltd 41 on the cards due to a number of factors Copyright © 2021 All rights reserved Flexible. Modular. Customizable. A Bespoke Technology Solution For Broker Dealers, for All Your Securities Finance Agent Lenders, Business Needs Collateral Managers, Beneficial Owners & Retail Brokers [email protected] EquiLend LLC, EquiLend Europe Limited, EquiLend Canada Corp. and EquiLend Clearing Services are subsidiaries of EquiLend Holdings LLC (collectively, “EquiLend”). EquiLend LLC and EquiLend Clearing Services are members of FINRA and SIPC. EquiLend Clearing Services is registered with the SEC and FINRA as Automated Equity Finance Markets, Inc. EquiLend Europe Limited is authorized and regulated by the Financial Conduct Authority. EquiLend Canada Corp. is authorized and regulated by IIROC. All services offered by EquiLend are offered through EquiLend LLC, EquiLend Europe Limited, EquiLend Canada Corp. and EquiLend Clearing Services. EquiLend and the EquiLend mark are protected in the United States and in countries throughout the world. © 2001-2021 EquiLend Holdings LLC. All Rights Reserved. In the search for alpha, you need more than just a lending agent. RETURNS You need complexity made simple. Uncertainty made clear. Decisions made with confidence. MADE Above all, you need a trusted partner like State Street. SIMPLE Our lending program is the most innovative in the world.1 We give you easy access to the intelligence and lending tools you need to make the right moves and unlock growth. statestreet.com/globalmarkets 3390559.1.1.GBL ©2021 State Street Corporation. For informational purposes only. Securities lending services are provided through State Street Global Markets, the marketing name and a registered trademark of State Street Corporation, used for its financial markets business and that of its aliates. Products and services may not be available in all jurisdictions. 1 Global Investor ISF Survey 2020 – Securities Finance Agency Lending named Most Innovative Lender News Round-Up 6 the ‘E’ and the ‘S’ of ESG. We are very proud to launch BetterLend, making sure securities lending is ESG-compliant, while enabling our clients to make a positive impact in the world by planting trees, digging wells and installing solar panels, all by lending their securities.” Pirum builds out CollateralConnect Pirum expands its CollateralConnect platform Sharegain launches BetterLend with enhanced risk management capabilities. The new module — Exposure Analytics — Sharegain has launched BetterLend, a platform with those areas and identifying projects that will improves visibility, workflow and controls that supports social and environmental causes be delivered through clients’ lending activities. to help firms improve monitoring risk through securities lending activity. BetterLend within their bilateral, triparty and collateral allows Sharegain’s clients to use their lending Sharegain CEO Boaz Yaari says: “For the management programmes. activity to create positive change across four first time, a securities lending agent is taking areas: clean water, reforestation, renewable a stand, not just by supporting principles of The collateral management service’s new energy and education. sustainable finance, but ensuring securities module allows for real-time monitoring, lending revenue is doing good in our world. which helps firms to comply with regulatory When Sharegain clients opt into BetterLend, they requirements, such as the Markets in Financial choose a percentage of lending revenue they “Until now, securities lending has dealt with Instruments Directive, the Basel Committee on want to commit and the initiatives they want to governance — the ‘G’ of ESG, ensuring Banking Supervision and Basel. support. Clients choose one or more of the above securities lending is ESG-compliant. Now is areas to put their lending revenue towards. the time to make it truly compatible. Exposure Analytics also has baked in compliance controls, thanks to independent BetterLend then handles the implementation, by “Many investors want to achieve more with compliance checks mandated by regulators, partnering with charitable organisations that align their securities lending. They want to deliver on Pirum says. Consulting Services Software Solutions ✓ Strategic Consulting ▶ C-One Securities Finance ✓ Project & Program Management In-house/Platform Hybrid Solution ✓ Business Analysis & Consulting ▶ C-One Connectivity Your Specialists in ✓ Technical & Infrastructure Consulting Standard Market Interfaces Securities Finance ✓ Product Architecture & Design ▶ C-One RegReporting Solutions ✓ Software Development SFTR | CSDR | MiFID ✓ Blockchain Development ▶ C-One Blockchain/DLT Platform Efficient.