Livestreamed
Live sessions: June 3, 4, 10, 11
10.00-13.30 CEST | Time Zone Converter


OVERVIEW
COURSE SYLLABUS
COURSE DETAILS
TEST YOUR KNOWLEDGE
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Securities Lending & Borrowing has been an important activity within the securities marketplace for many years. Firms that choose to lend their equities and/or bonds do so in order to earn lending fees and to enhance their investment returns. Conversely, firms that choose to borrow securities typically do so primarily to meet delivery commitments and to receive sale proceeds in a timely fashion.

However, undertaking securities lending & borrowing transactions is not without risk. The mitigation of exposures is an essential daily task, involving the regular revaluation of both the lent/borrowed security and the associated collateral. Companies are also required to make margin calls on the counterparty and settlement of such margin calls.  

Additionally, corporate actions may arise which can impact the lent security and/or securities collateral.

It is therefore of paramount importance that those responsible for processing such transactions possess a clear understanding of the risks involved, their potential exposures and critically, what mitigating measures are necessary.

Course Outcomes

By completing the course you will be able to:
  • Have a strong grasp of the fundamentals of Securities Lending & Borrowing (SLB) and be able to explain the transaction lifecycle 
  • Describe the types of market participants and appreciate why these firms engage in SLB, and their impact on capital markets and retail investors
  • Understand the operational, legal and regulatory risks and issues involved 
  • Comprehend the advantages/disadvantages of using different types of collateral 
  • Appreciate the impact that corporate actions have on the lent security and on securities collateral
  • Discover some relevant anecdotes and SLB case studies
  • Describe the types of market participants and appreciate why these firms engage in SLB, and their impact on capital markets and retail investors
    Understand the operational, legal and regulatory risks and issues involved 
    Comprehend the advantages/disadvantages of using different types of collateral 
    Appreciate the impact that corporate actions have on the lent security and on securities collateral
    Discover some relevant anecdotes and SLB case studies

Who should attend?


The course is suitable for personnel working within many departments of financial institutions such as operations, middle office, risk, legal, accounting and IT. The course is applicable to buy and sell-side firms, plus those working within central securities depositories and custodians.  

The course is targeted towards those currently working within a securities lending department who would benefit from an all-round understanding of the topic. In addition, those who have had limited exposure to the topic but who require a greater understanding of the relationships between their work and securities lending & borrowing.  

Programme Recognition

This course has been approved by the Securities & Futures Commission of Hong Kong for Continuous Professional Training (CPT).
ICMA is also a member of the CPD® Certification Service which helps organisations formalise knowledge into a structured and recognised approach to meet professional development expectations.

ICMA recommends that 20 learning hours can be associated with this course, based on attended/undertaken hours of study required to successfully complete the learning outcomes.

Please note that your course certificate of attendance or completion should be sufficient to satisfy any professional development requirements – if you require further evidence, please contact us at education@icmagroup.org.

Pricing

Members: EUR 1,650 + VAT (if applicable)
Non-members: EUR 2,050 + VAT (if applicable)


Course Trainer

David Rosenthal
Gail Rolland
Mike Simmons
The course content is divided into several topic areas, which are then broken down into multiple subtopics: 

  • Securities Lending & Borrowing (SLB) – The Fundamentals 
    • What is Securities Lending?
    • The Purpose: Why Do Lenders Lend & Borrowers Borrow?
    • Participants & Structure
    • Trading Strategies
    • Examples
  • SLB Trade Lifecycle - An Overview
    • Short Selling, Naked Short Selling
    • Locates, Trade Execution & Fails
    • Margin
    • Corporate Events
    • Billing
  • The Marketplace – Participants & Stakeholders
    • Lenders, Borrowers and Intermediaries 
    • Examples
    • The Lender’s Perspective: Motivations and Considerations
    • The Borrower’s Perspective: Motivations and Considerations
    • Global custodians
    • Third-party lending agents
    • Central counterparties
    • Anecdotes
  • SLB Trade Lifecycle
    • Pre-trading, Locates
    • Trade execution
    • Pre-settlement
    • Settlement 
    • Buy-ins
    • Mark to Market 
    • Margin calls
    • Recall/return of lent settlements
    • Fees & Billing
  • Assets & Collateral
    • Equity vs Fixed Income 
    • Fundamental collateral concepts
    • Margin: Purpose & use 
    • Types of collateral
    • Rehypothecation
  • Legal Documentation
    • GMSLA
    • Securities lending agency agreement
    • GMRA
  • Updating Books & Records
    • Securities bookkeeping: Definition & purpose
    • Importance of updating books & records
    • Updating books and records for lent/borrowed securities, cash and non-cash collateral, fees and rebates
  • SLB and Corporate Actions
    • Corporate actions: Overview 
    • Income
      • Cash dividends
      • Lent securities
      • Short sale proceeds
      • Lent/borrowed equity
    • Voting 
    • Withholding tax

  • Risks in Securities Lending & Borrowing 
    • Market Risk
    • Credit Risk
    • Operational Risk
    • Legal Risk
    • Reputational Risk 
  • Regulation
    • Introduction
    • EU short selling & financial transactions tax
    • CSDR 
    • Reporting to a central trade repository
  • Recent SLB Scandals & Controversies
  • The Lehman saga uncovered
    Securities Lending & Borrowing (SLB) – The Fundamentals 
    What is Securities Lending?
    The Purpose: Why Do Lenders Lend & Borrowers Borrow?
    Participants & Structure
    Trading Strategies
    Examples
    SLB Trade Lifecycle - An Overview
    Short Selling, Naked Short Selling
    Locates, Trade Execution & Fails
    Margin
    Corporate Events
    Billing
    The Marketplace – Participants & Stakeholders
    Lenders, Borrowers and Intermediaries 
    Examples
    The Lender’s Perspective: Motivations and Considerations
    The Borrower’s Perspective: Motivations and Considerations
    Global custodians
    Third-party lending agents
    Central counterparties
    Anecdotes
    SLB Trade Lifecycle
    Pre-trading, Locates
    Trade execution
    Pre-settlement
    Settlement 
    Buy-ins
    Mark to Market 
    Margin calls
    Recall/return of lent settlements
    Fees & Billing
    Assets & Collateral
    Equity vs Fixed Income 
    Fundamental collateral concepts
    Margin: Purpose & use 
    Types of collateral
    Rehypothecation
    Legal Documentation
    GMSLA
    Securities lending agency agreement
    GMRA
    Updating Books & Records
    Securities bookkeeping: Definition & purpose
    Importance of updating books & records
    Updating books and records for lent/borrowed securities, cash and non-cash collateral, fees and rebates
    SLB and Corporate Actions
    Corporate actions: Overview 
    Income
    *Cash dividends
    *Lent securities
    *Short sale proceeds
    *Lent/borrowed equity
    Voting 
    Withholding tax
    Risks in Securities Lending & Borrowing 
    Market Risk
    Credit Risk
    Operational Risk
    Legal Risk
    Reputational Risk 
    Regulation
    Introduction
    EU short selling & financial transactions tax
    CSDR 
    Reporting to a central trade repository
    Recent SLB Scandals & Controversies
    The Lehman saga uncover

Livestreamed Course


ICMA courses are delivered via video conferencing accessed on our digital learning platform, using the most effective pedagogical approaches and incorporating interactive functions like virtual breakout rooms.

The Securities Lending and Borrowing: Operational Challenges live sessions are delivered in four 3.5 hour sessions over the course of two weeks. You will be given access to the course materials before the live sessions, and will have access to those for a total of four weeks. During these four weeks you will have the option to keep working through the course materials at your own pace.

Live sessions: June 3, 4, 10, 11
10.00-13.30 CEST | Time Zone Converter



Live sessions: November 22, 23, 29 and 30
10.00-13.30 CEST | Time Zone Converter




Livestreamed course fees

Members: EUR 1,650 + VAT (if applicable)
Non-members: EUR 2,050 + VAT (if applicable)

For security reasons, delegates who have not registered in advance will not be admitted to the live sessions.

Please note:
  • All payments must be made in Euro.
  • Invoices for single registrations are subject to an additional Euro 50 to cover administration costs*. No administration fee applies for invoices covering two or more registrations.
*Administration costs cover the provision of supporting documents, which are often requested along with the invoice, to become an approved supplier.



Contact

Should you have any queries, please contact education@icmagroup.org.



Test your knowledge

Trade financing
Portfolio enhancement
Risk management
GMSBB
GMRA
GMSLA
One week
Open (good till cancelled)
One month
The lender
The borrower
At the beginning
Throughout the trade
At the end

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