Global Securities Lending Course

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
➢ 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

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. 

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.

Summary and Conclusion