Because the Smartest
Way to Prepare
Is to Know What
Trading activities such as short selling, hedging, arbitrage and fails-driven borrowing have long been cornerstones of the securities lending business. But the industry is getting ever more complex to navigate, and not only from a regulatory standpoint.
Key trends worth watching
SFTR marks a new era of transparency for the industry. And, while SFTR was not meant to be easy, the effort in reaching and maintaining compliance has driven industrywide improvements in communications, standardization and automation. We expect these initiatives to expand and gain momentum moving forward, as witnessed by the rise in discussions around Common Domain Models (CDM) as the next logical step.
© 2020 FIS FIS and the FIS logo are trademarks or registered trademarks of FIS or its subsidiaries in the U.S. and/or other countries. Other parties’ marks are the property of their respective owners. 1005610
Work from home %
While the Securities Financing Transactions Regulation (SFTR) was delayed as a result of COVID-19, Phases 1 and 2 successfully launched, with encouraging statistics for data submissions being published.
FIS is not alone in this achievement. As COVID-19
restrictions endure, the new normal is becoming the
norm for many and will very likely stay that way.
Tasks that some thought might take 18 months to
achieve were completed in seven days.
Over one week in March, FIS went from 10 percent
of our 57,000 staff working from home to more than 95 percent.
Industrywide, systems and processes have adapted. Resistance toward working from home or running services in cloud environments, hosted and managed by technology vendors, has all but evaporated. We are seeing significant interest not only in our hosted and managed service offerings, but the advantages of outsourcing certain commoditized activities as well. We expect to see demand for these types of services continue to grow.
FIS is part of the development of the Global Principles for Sustainable Securities Financing, championed by the International Securities Lending Association (ISLA). Working with multiple industry stakeholders, the panel seeks to find ways to adopt workable principles that underpin sustainable finance.
ESG includes governance, and this is where securities finance can contribute, rather than just accommodate the movement. Only through our participation in it can we ensure that ESG-compliant assets remain liquid with proper price discovery and investors have the ability to recall and vote on their shares.
Environmental, social and governance (ESG) principles have burst onto the financial markets in the last 12 months and are rapidly growing in importance. Indeed, the transition of long-standing financial measurements being joined by issues of sustainability, green energy and corporate responsibility is increasing in pace.
Maximize your growth with the know-how of one trusted partner and the commitment of the world’s leading fintech provider.
FIS’ Securities Finance Suite levels the silos and eliminates redundant, inefficient processes so you can maximize top-line returns. A global platform that gives you a real-time view, so you can efficiently utilize inventory across the firm and make better trading decisions.