Securities Finance Times organized a virtual panel of experts—including William Yan, Associate, Market Services Solutions—to look at the Canadian securities lending markets and how current political and regulatory decisions are shaping Canada’s move forward. Here are some highlights of the discussion:
- The Canadian securities finance market has demonstrated remarkable resilience over the past 12 months, maintaining a steady course amid turbulent global conditions.
- The transition to T+1 was smooth thanks to industry collaboration and preparation led by the Canadian Capital Markets Association, including the rapid adoption of automated operational processes across the value chain.
- Securities lending remains subject to increasing regulatory changes, while its importance as a source of return and liquidity for beneficial owners continues to increase.
- AI-powered analytics and machine learning models are becoming increasingly valuable in their applications toward trend analysis, demand forecasting and lending fee optimization.
- Looking to the year ahead, fixed income lending in Canada should remain strong, supported by ongoing rate adjustments and liquidity needs, and equity lending should benefit from pockets of demand in sectors like energy and technology.
- Beneficial owners are cautious and pragmatic, balancing risk and reward while adapting their programs to the fast-changing landscape.
“The Canadian securities lending market has had a strong track record of resilience amid ongoing change.”
William Yan
Associate, Market Services Solutions
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