Understanding how regulatory change may impact your business, and having the solutions available to deliver against the requirements, is key to the future success of any securities finance business.
There is an unprecedented level of proposed regulatory change that will impact securities lending currently under consideration. The technicalities of securities lending can mean that the impacts are not always immediatley obvious to the broader firm or compliance officers and it will be easy to miss something important.
Potential regulatory changes on the horizon which may impact your business (but not limited to) include:
- ESMA proposed regulation of short selling & Sovereign CDS
- Modernisation of the Transparancy Directive
- FSB review of shadow banking activity
- Solvency II and Basel III
Solvency II and Agent Lenders
Agent Lenders who have insurance fund clients will have to contend with Solvency II that is driven by the European Insurance and Occupational Pensions Authority (EIOPA), which like Basel II for banks, is driving insurance companies to supply large quantities of data to the regulator. To resolve these issues MX has built an ASP.net web based application that services agent lenders requirements. See our case study for more detail.