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Independent academic research indicates lack of impact of short selling restrictions globally - 17 Dec '08

Academic research from Professor Ian Marsh and Norman Niemer of Cass Business School, London, has been released by ISLA, AIMA and LIBA today, which finds no strong evidence that the emergency short selling restrictions imposed in various markets around the world have changed the behaviour of stock returns.

A summary statement can be found here.

The full research is available at

ISLA Elects new Board and plans affiliation to SIFMA - 01 Oct '08

ISLA has issued the following press release following its AGM today announcing the election of a new Board and plans to become a division of SIFMA.

Restrictions on short positions must not prevent lending of financial shares to support equity market liquidity - 26 Sep '08

Please see link for a press release issued today by ISLA, jointly with SIFMA and RMA in North America and PASLA and ASLA in Asia/Australia encouraging the continued lending of financial shares notwithstanding temporary regulatory restrictions on short selling of those shares in a number of countries globally.

ISLA comments on temporary prohibition of new short positions in financial stocks - 19 Sep '08

ISLA has today issued the attached press release.

ISLA issues model for agent lender disclosure in Europe - 15 Jul '08

ISLA has today issued the attached press release and final paper setting out its recommended model for agent lender disclosure in Europe to provide borrowers with the information they need to manage counterparty credit exposures and calculate regulatory capital requirements under Basel 2.

The main recommendation is to replicate in Europe the existing US ALD model, including use of the data exchange hub provided by DTCC and the same standardised file formats used in the US model.

Some adaptations to file content are recommended, induding reporting of agency repo transactions, optional reporting of agency reverse repo transactions, triparty collateral reporting and DBV reporting.

A recommended implementation timetable is included in order for UK-based firms to meet the deadline of 1 January 2010 set by the Financial Services Authority.

Any questions on the model should be addressed to ISLA has also produced short summary guides to EU ALD for agent lenders and borrowers.

Also available are the following appendices:

ISLA welcomes ruling in Beconwood vs ANZ - 02 May '08

ISLA has issued a press release welcoming Judge Finkelstein’s ruling in this Australian Court case, which will give further certainty to market participants that securities loans governed by industry-standard agreements, such as the GMSLA, are legally robust.

The full ruling can be found at

ISLA publishes interim recommendations for agent lender disclosure in Europe - 30 Nov '07

With the introduction of Basel 2 in Europe from 1 January 2008, borrowers of securities through pooled agency lending programmes will need greater disclosure of the allocation of trades and collateral amongst underlying principal lenders in order to calculate their regulatory capital requirements.

The UK Financial Services Authority has stated that the industry should move to full, daily disclosure for all firms borrowing securities, at point of trade where possible and no later than a business day following settlement date, within two years from January 2008.

In the interim, the FSA has proposed a capital treatment for borrowers based on at least monthly disclosure of principal positions and collateral allocation, together with a list of all potential principal lenders, updated to reflect any changes on a timely basis. ISLA has recommended minimum standards for how that disclosure should take place, which are summarised in the press release here.

Further details are available to ISLA member firms on the member-only pages of this website. ISLA will continue to work on a model for daily disclosure during 2008.

New ISLA offices and ISLA executive - 24 Sep '07

The ISLA executive, comprising David Rule and Hugh Gibson (consultant), has moved into offices at ISLA, St Michael's House, 1 George Yard, London EC3V 9DH.

Please use this address for all future correspondence. ISLA's new contact details are below:

Telephone:  0207 743 9314
David Rule mobile: 07983 447439

ISLA elects new Chairman and Board and appoints CEO - 23 May '07

At today's AGM Laurence Marshall of UBS was announced as the new Chairman of ISLA following the recent election. The other elected directors are James Templeman, BGI (Deputy Chairman); Richard Steele, JPM (Ex Officio); Mark Tidy, ABN Amro Mellon (Secretary); Ian Hovey, State Street (Treasurer); Andy Amstutz, Morgan Stanley; Andy Clayton, Northern Trust; Kirstine McMillan, AIG; Mohamed Moursy, Fortis; Sarah Nicholson, Morley; Andrew Sears, Goldman Sachs; and Richard Thompson, BNP Paribas Securities Services.

Members approved the resolution to incorporate ISLA as a company limited by guarantee, to empower the board to appoint a Chief Executive and to introduce a category of associate member. Following the AGM, the new Board agreed to appoint David Rule as ISLA's Chief Executive with immediate effect.

Click here to read the Press Release distributed to the media today.

Price Efficiency, Securities Lending and Short Selling - 28 Mar '07

Recent research by Pedro Saffi and Kari Sigurdsson of the London Business School has examined whether the levels of borrowing fees and the availability of a stock in the securities lending market - so that short selling is less constrained - improve price efficiency.

The authors conclude that they do: short selling constraints are associated with lower price efficiency. They also show that fewer short-selling constraints are not associated with a higher proportion of sharp falls in stock prices.

TARGET2 Securities - 30 Jan '07

The ECB has published details of a proposed integrated European securities settlement system - TARGET2-Securities (T2S). T2S would make it possible to settle all euro-area securities (bonds and equities) through any connecting securities depository (CSD) i.e. a single interface.

Further information can be found in the current issues section of the members page, and also on the ECB website.

Shareholder Voting - 06 Feb '06

The European Commission has published a proposal for a Directive on shareholder voting which is designed to:

    1. Ensure that all general meetings are convened sufficiently in advance
    2. Abolish all forms of share blocking
    3. Remove obstacles to using electronic participation at meetings
    4. Offer non-residents a simple means of voting without attending the meeting

The proposal has been forwarded to the European Parliament for a first reading.

We are also told that:
'Other topics covered in the public consultations, which are indirectly related to the exercise of voting rights, such as stock lending, depositary receipts or the rules governing languages, could form part of the Commission's recommendations.'

The references to stock lending in the two consultation exercises conducted on this issue related firstly to a suspicion that lenders were unaware of what securities their agents had lent, or even if their securities were part of a lending programme, and secondly to an ignorance amongst lenders of what arrangements applied for voting on securities in a lending portfolio. In its response, ISLA pointed out that the SLRC code of guidance, which our members all adhere to, satisfactorily covered both of these topics in that agents must always have a formal legal agreement in place before any lending is undertaken and voting arrangements must be explained to and fully understood by any lenders.

Click here for more details found on the EU Website.

Members Click here for more information

UCITS Eligible Assets - 30 Jan '06

Following a consultation last year, CESR has just published its advice on eligible assets for UCITS. The Press Release, full advice and copies of the responses can all be found here: under the News section.

CESR has responded to consultees suggestions and taken the opportunity to amend the wording relating to the liquidity of certain shares and also to clarify the eligibility of Certificates of Deposit. We assume that this clarification of eligible investments will also apply to eligible collateral for securities loans.

We welcome these clarifications which will go some way to providing a common treatment for UCITS across the EEA

News Headlines more>
Independent academic research indicates lack of impact of short selling restrictions globally
17 Dec '08
ISLA Elects new Board and plans affiliation to SIFMA
01 Oct '08
ISLA RMA SIFMA ASLA PASLA Joint Statement to support equity market liquidity
26 Sep '08
ISLA comments on temporary prohibition of new short positions in financial stocks
19 Sep '08
ISLA issues model for agent lender disclosure in Europe
15 Jul '08
ISLA welcomes ruling in Beconwood vs ANZ
02 May '08
ISLA publishes interim recommendations for agent lender disclosure in Europe
30 Nov '07
Current Issues more>
Securities lending and short selling - Update
Jun '08
Why asset management arms of banks should continue to lend bank shares
Jun '08
ISLA consults on revised GMSLA
May '08
ISLA guidance on outstanding loans of former Northern Rock shares
Mar '08
French trade date recommendation
Dec '07
ISLA response to Independent article
Nov '07
ISLA Consultation on Proposed Changes to the GMSLA
Jul '07
ISLA response to FT article
Jun '07
Events more>
Professional Repo and Collateral Management course with Securities Lending Workshop
24-26 March 2009

ISLA/RMA Conference 2009
23-25 June 2009
Hotel Arts
Barcelona, Spain
International Securities Lending Association - News