A primary challenge for technology used in securities finance has been to improve collateral mobility across siloed businesses and locations that have not been traditionally well connected.
Asset servicing firms, which usually leverage off of their parent banks’ capital market capabilities to provide securities finance services, are increasingly delivering data and tools that assist front-office investment decisions and support firms in their shareholder engagement activities.
According to Harpreet Bains, global head of product, agency securities lending at JP Morgan, when dealing with siloed businesses, the key is to deliver interconnected technology and integrated data.
Bains, speaking in Funds Europe’s recent securities finance report, said technology means single platforms can be used to gain holistic views of positions, the inventory available for collateral, and liquidity statuses. However, Bains claimed that fund management firms in particular “still do not have an enterprise-wide view of these resources”.
Significantly, the role of the agent lender has risen in buy-side decision-making processes. Data and insights from securities lending are becoming integral to investment decision-making – particularly as firms apply ESG overlays to their investment strategies.
Read more about the role of technology in securities finance here: Securities finance: Securities lending industry defines its digital future
