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Securities Lending Market Report | June 2021

Final The first half of 2021 has been volatile on many fronts across all asset classes. Balances
have been at recent record highs and whilst spreads have had multiple peaks and troughs
Thoughts across equities, they have remained thin on fixed income. Until the central banks step

and Looking away from propping up the system with liquidity or raise interest rates, this is likely to
continue.
Ahead We have much work to do during the rest Environmental, social and governance (ESG)
of the year. is also at the heart of client conversations,
and we welcome the work that is taking
Borrowers and lenders alike are grappling place at ISLA in encouraging conversations
with their own financial resource with member firms to think about a
constraints, which change continuously. The framework for solutions in this space.
ability of agents to make securities available
to borrowers through multiple methods will Digitisation and tokenisation have hit the
be a key enabler to assist the management agenda on the back of the crypto wave
of those resources. We are seeing increased this year, although we expect this to be a
demand for Global Master Securities huge lift for the industry, the benefits of
Lending Agreement (GMSLA) Security reduced settlement timeframes for loans
Interest (Pledge) provision across all triparty and collateral will completely transform our
providers and a requirement to view industry in terms of efficiencies, removing
clients from a risk weighted assets (RWA) the need for markets to be open during
perspective. A client’s ability to accept limited hours as they are today. We expect
broad ranged collateral, term transactions this topic to be on the agenda for many
and Pledge as well as their RWA appraisal years to come.
will all continue to be key factors driving Finally, thank you to all our clients and
utilisation and performance. About State Street Corporation
counterparts, service providers and to
From a regulatory perspective, the industry ISLA for your continued business, support
is working with the International Securities and engagement to date. We look forward State Street Corporation (NYSE: STT) is one of the world‘s leading providers of financial services
Lending Association (ISLA) to determine to continuing to collaborate with you to institutional investors including investment servicing, investment management and investment
the impacts of the Central Securities throughout the rest of the year and beyond.
Depositories Regulation (CSDR), where research and trading. With $42.6 trillion in assets under custody and/or administration and $3.9
there is a rush to minimise fails and the trillion* in assets under management as of 30 June 2021, State Street operates globally in more than
potential penalties that may ensue with the 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit
help of functionality and visibility from the State Street‘s website at www.statestreet.com.
post trade services platforms.
*Assets under management as of 30 June 2021 includes approximately $64 billion of assets with respect
to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely
as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

Disclaimer: The material presented is for informational purposes only. The views expressed in this material
Matthew Neville is a Managing Director and Head are the views of the Author(s), and are subject to change based on market and other conditions and factors,
of Agency Lending Trading, EMEA, for State Street moreover, they do not necessarily represent the official views of State Street Global MarketsSM and/or State

Global Markets. Street Corporation and its affiliates. 3683987.1.1.GBL.