Livestreamed
Live sessions: May 9, 10, 16 and 17
10.00-13.30 CET | Time Zone Converter

OVERVIEW
COURSE SYLLABUS
COURSE DETAILS
TEST YOUR KNOWLEDGE

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Securities Lending 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 and be able to explain the transaction lifecycle 
    • Describe the types of market participants and appreciate why these firms engage in Securities Lending, 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 Securities Lending 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.  

Certification and Programme Recognition

This course has been accredited by the CPD® Certification Service and approved by the Securities & Futures Commission of Hong Kong for Continuous Professional Training (CPT).

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.

The course is certified by ICMA and the ICMA Centre, Henley Business School, University of Reading. A Certificate of Completion will be awarded to those who meet minimum attendance requirements. Please note that while course recordings will be made available to delegates, it is a course requirement that delegates meet the minimum attendance requirements to be eligible for a certificate. Please contact education@icmagroup.org if you have any questions regarding certification.

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 1,850 + VAT (if applicable)
Non-members: EUR 2,390 + VAT (if applicable)

The course content is divided into several topic areas, which are then broken down into multiple subtopics: 


  • Securities Lending – The Fundamentals 
    • What is Securities Lending?
    • The Purpose: Why Do Lenders Lend & Borrowers Borrow?
    • Participants & Structure
    • Trading Strategies
  • The Marketplace – Participants & Stakeholders
    • Lenders, Borrowers and Intermediaries 
    • The Lender’s Perspective: Motivations and Considerations
    • The Borrower’s Perspective: Motivations and Considerations
    • Global custodians
    • Third-party lending agents
    • Central counterparties
  • Trade Lifecycle
    • Pre-trading, Locates
    • Trade execution
    • Pre-settlement
    • Settlement 
    • Buy-ins
    • Mark to Market and 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
  • Securities Lending and Corporate Actions
    • Corporate actions: Overview 
    • Income
      • Cash dividends
      • Lent securities
      • Short sale proceeds
      • Lent/borrowed equity
    • Voting 
    • Withholding tax

  • Risks in Securities Lending
  • Regulation
    • Introduction
    • EU short selling & financial transactions tax
    • CSDR 
    • Reporting to a central trade repository
  • Recent Securities Lending 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 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 from the first live session. During these four weeks you will have the option to keep working through the course materials at your own pace.

Live sessions: May 9, 10, 16 and 17
10.00-13.30 CET | Time Zone Converter


Live sessions: November 24, 25 and December 1, 2
10.00-13.30 CET | Time Zone Converter



Livestreamed course fees

Members: EUR 1,850 + VAT (if applicable)
Non-members: EUR 2,390 + 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.


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