Understanding Securities Lending Legal Frameworks
On the 26 May ISLA hosted the first ever ISLA Connects Educational Briefing to be held in Canada.
In partnership with Canadian Securities Lending Association (CASLA) and RBC Investor Services, the educational briefing formed part of the CASLA pre-conference programme and welcomed over 50 delegates for a practical overview of the legal frameworks underpinning the securities lending industry on both sides of the Atlantic – the GMSLA & MSLA master agreements
Our hosts kicked off proceedings before welcoming our ISLA and ISLA Americas legal experts to provide invaluable technical insights into these core global frameworks.
Key takeaways include:
◾Collateral Nuances: Operational differences exist to reflect the market operations. This includes the GMSLA’s cross-border flexibility and the heavily cash-driven rebate practices of the US MSLA market.
◾Risk Management: Close-out netting is necessary in reducing credit and counterparty exposure.
◾Legal Certainty: Frameworks are only one part of the story. Having certainty that agreements provide the necessary protections, is vital. With netting opinions in over 71 jurisdictions, the GMSLA provides the certainty market participants require.
Following the deep dive, we were joined by our panel from RBC Investor Services and National Bank of Canada to help demystify how cross-border desks manage title transfer structures, daily margining, and economic equivalence across both rulebooks.
Thank you to all of our speakers and panellists, as well as our hosts RBC Investor Services and the team at CASLA for supporting the international growth of ISLA Connects.
To find out more about ISLA Connects, including how you can sign up to our mailing list, click here.
