Accelerated Settlement Challenges: Stock Borrowing/Lending & Collateral/Liquidity Management

A T+1 Forum Event – Stock Borrowing/Lending & Collateral/Liquidity Management

Tuesday 14th November 2023

In Association with the CISI, THE INVESTMENT ASSOCIATION and PIMFA

Background Information

The move to T+1 settlement in North America during 2024 and the intention indicated by the UK Accelerated Settlement Taskforce to follow suit in the UK create many business, technology and process challenges, which need to be fully explored. The ISITC Europe T+1 Forum series of roundtable discussions are designed to facilitate an in-depth, cross-industry understanding of those challenges and what solutions can be found for the short, medium and long term.

Each roundtable will be conducted under the Chatham House Rule, where no individuals or companies will be named, to facilitate a free and frank exchange of views. Sessions will be moderated by a member of the ISITC Europe T+1 research team and scribed by forum secretariat EY, to enable the production of a post session report, (complying with the Chatham House rule).

• Our goal is to increase industry knowledge and understanding by defining the problems from both buy and sell side perspectives.
• To discuss potential solutions i.e., amending business/operational processes, adapting existing technology or implementing new technology.
• To assist with strategic planning and development.
• To find a successful path to T+1 settlement implementation for everyone.

Kindly hosted by EY

Time: 12:15 – 12:45 Lunch  – 12:45 Welcome/Opening Address  followed by roundtable discussion – 14:15 Close

Location: EY, 25 Churchill Place, Canary Wharf, London, E14 5EY

This is the third in a series of roundtable discussions examining the impact of accelerated settlement. It will look at the challenges facing stock borrowing/lending/collateral and liquidity management. Some key issues to discuss will be the difficulties of faster call backs and the challenge of maintaining real-time valuations. Further areas of discussion will likely include

• Will some lenders withdraw?
• What will be the impact on collateral and margin management?
• Will there be Increased borrowing costs or a withdrawal of stock availability?
• Can international stock borrowing be improved by further STP between assets owners, their lending agents and their custodial partners?