The Securities Lending Committee convened in September 2025 at Blackrock's Drapers Gardens in London. The meeting, which took place from 2:30 to 4:30 pm, addressed several key issues impacting the UK securities lending market.
The session began with introductory remarks from the Chair, who acknowledged the contributions of Andy Dyson from ISLA and Andy Krangle from Citi as they step down from their roles.
A significant portion of the discussion focused on diversity, equity, and inclusion within the industry. Members highlighted that flexible working arrangements are now considered essential for attracting and retaining talent. It was noted that a reduction in such practices could negatively affect career aspirations.
The committee also reviewed upcoming legislation on T+1 settlement, emphasizing the importance of automation before the October 2027 deadline. The Financial Conduct Authority (FCA) is actively engaging with firms to ensure readiness for testing set to begin in 2026. The FCA plans to publish a blog outlining key practices for settlement processes by October.
Concerns were raised about cross-border collateral settlements and market sales executed at market close, requiring collaboration and enhanced resources. There was a noted reluctance to invest in digitalization without industry-wide agreement.
A market update included discussions on a Bank of England paper aimed at enhancing gilt repo market resilience through measures like gilt repo clearing and minimum haircuts. Challenges with corporate action payment discipline were also addressed, with expectations for improvement as automated solutions are implemented.
Increased automation needs across the securities finance industry were discussed, highlighting diverse vendor solutions tailored to business needs and budgets. Fragmentation of inventory and liquidity reduction remain concerns, prompting calls for best practice solutions through purchasing power.
The SLC Tax & Regulations sub-committee updated attendees on regulatory changes affecting UCITs collateral arrangements, noting ESMA's contentment with collateral via pledge construct. A new EU capital markets Savings & Investments Union is anticipated to replace the Capital Markets Union soon.
No further business was discussed during this meeting attended by representatives from various financial institutions including M&G Plc, BoNY, Barclays, Blackrock, Clifford Chance, Goldman Sachs, HSBC, ICMA, JP Morgan, MUFG, State Street Global Markets, FCA, DMO among others.
Information from this article can be found here.