The International Securities Lending Association (ISLA) is pleased to share its response to the Spanish Ministry of Economy and the Treasury with regards to the Ministerial Order to regulate Securities Lending from Collective Investment Institutions (IICs).
You can read our full consultation response here.
This follows the publication of a whitepaper in January 2024 from the Spanish Stock exchange BME | Bolsas y Mercados Españoles on Fostering the Competitiveness of the Spanish Capital Markets, which recognised that Spain is the only country in Europe that has not yet developed securities lending operations by IICs. BME group issued a call to government to accelerate the regulation of securities lending and requested the approval of this Ministerial Order that will increase market liquidity and eliminate the competitive disadvantage for Spain.
A report from the The Economist recently advised that Spain’s economic performance assessment far surpassed that of other major economies in the OECD in 2024, and ISLA believes that the development of securities lending rules is one step closer to strengthening the growth of the Spanish economy.
ISLA’s response highlights the need to standardise the rules against the EU’s UCITS Directive and corresponding guidelines where possible, and we hope to see the Ministerial Order approved in the coming months.
We would like to thank our members and partners including Clifford Chance Spain for the support in submitting the response.
