Managing Floating Rate Stock Loans with Goldilocks’ Rate Predictions

“Fair Pricing” in ASC’s Rebate Flow Time Series

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The upcoming Securities Lending Transaction and Reporting Engine (SLATE) data release will revolutionize securities lending by enabling precise pricing and risk management. With SLATE's comprehensive data, lenders can develop advanced models to optimize rebates, enhance revenue, and mitigate risks. The Goldilocks rate, a key metric derived from SLATE data, allows for precise pricing adjustments based on market demand and security scarcity. By leveraging SLATE's insights, lenders can make informed decisions, improve operational efficiency, and gain a competitive edge in the market.

SEC Extends SLATE Review Period Due to Industry Concerns

Many Believe FINRA Exceeded its Mandate

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The SEC extended the review period for FINRA's proposed SLATE rules, designed to implement securities lending reporting under Rule 10c-1a. Industry participants voiced concerns that the proposed rules exceed the SEC mandate by requiring additional data elements not explicitly outlined in the regulation. These elements, such as expected settlement dates, fee details, and various modifiers, could potentially expose sensitive financial information and proprietary trading strategies. Additionally, concerns were raised about the reintroduction of intraday reporting and the lack of transparency in the rulemaking process. Overall, the industry calls for a more measured approach that balances regulatory requirements with the need to protect confidential information.

Above the Benchmarks: Goldilocks Rates in Securities Finance

Precision pricing of securities loans with public data

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“More data and transparency are good, but it would be helpful to know what it will be used for.” That point was raised by a panelist at a recent securities finance industry conference. It’s a good question! We all know why the regulators want transparency, but the panel was talking about the potential impact on the industry from the upcoming securities lenders’ SLATE public disclosures by FINRA.

EU Agreement Clears the way for DLT Pilot Regime

Digitized Finance Begins for the Next Generation of Global Bankers

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The European Commission has reached agreement with legislators and financial trade groups on a digitized infrastructure to reshape the EU and, by extension, the global securities markets for a generation. The resolution affects all transactions involving EU securities, including securities loans, by (1) green-lighting the Distributed Ledger Pilot Regime, an effort to foster fintech innovation in the EU, and (2) delaying mandatory buy-ins, a highly contentious aspect of the ongoing sweeping reforms to the EU's securities settlement system. 


Is Securities Finance Blockchain Even Possible?

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The Walmart/IBM Foodtrust deals with a food-store range of item-instances in a finite supplier-line. It's been a significant innovation, but it's not overly complicated. Any average consumer can envision the standard data model. But can a securities-finance level of complexity be recorded by a blockchain?