Advanced Securities Consulting

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Advanced Securities

From Shadows to Signals: AI and Transparency in Securities Lending Risks

by , | May 26, 2025

The securities lending market is about to enter a radically transformative phase. Starting January 2, 2026, SEC Rule 10c-1a will mandate daily public reporting of all U.S. securities loan transactions via FINRA’s Securities Lending and Transparency Engine (SLATE). This regulatory initiative, born from Section 984(b) of the Dodd-Frank Act, introduces a new level of transparency with implications far beyond compliance.

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Traders’ AI-Boosted Edge in Securities Lending: Proof of Concept Insights for ROI Analyses

by , , , | Jan 29, 2025

Our Phase I Proof of Concept (POC) project demonstrates how professional traders, using guidance from Gen AI transformer models, can outperform competitors at those stock loan trading desks using regression models. The Gen AI advantage stems from the ability of AI-powered models to detect complex trends from vast datasets and deliver precise, actionable recommendations in highly volatile market sectors.

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Gen AI: Sharper Edge of Predictions in Equity Finance

by | Dec 15, 2024

Equity finance in the United States operates within a relatively closed market environment, governed by stable regulations with known participants, settlement and collateral profiles. These conditions produce fewer surprises than more open financial systems that depend on multi-currency capital flows or complex macroeconomic linkages.

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“Where is the Target’s Trajectory Now?”

by | Dec 7, 2024

Accurately identifying shifts in trend forecasts is as important for financial executives as for fighter pilots. Traditional regression models may offer simplicity and ease of interpretation but struggle with the complexities of modern financial markets. How can changes in the trendlines for risk and return be spotted quickly enough to take action? Livelihoods often hang in the balance when decision-makers weigh choices.

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EU Agreement Clears the way for DLT Pilot Regime

by | Dec 27, 2021

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.

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