Securities Lending Services
Global regulation is changing the way markets, institutions and companies are operating and managing their financing. For example, in anticipation of the new U.S. regulations that will result in increased capital requirements for U.S. banks, some of these banks are in the process of reducing their short term financing positions. Likewise, Basel III and local regulators are putting pressure on counterparties worldwide to increase capital and decrease leverage, negatively impacting these institutions’ capacity in the repo market.
Ensuring the right partner for securities lending is therefore important for two reasons. Firstly, you need a partner who, at a time of regulatory change, has access to a suitable pool of counterparties and secondly, a partner who will ensure merits of utilizing a high-quality service – additional profit, stable funding and limited risk.
Why MUFG Investor Services?
MUFG has run a global securities lending program for over 20 years providing the highest level of client service and sustaining highly profitable lending performance. Our custom-made solutions match the various needs of our clients.
Benefits offered globally by our securities lending services include:
- Access to active lending in over 20 equities markets
- Relationships with most of the major market participants, including an expanding universe of repo countries that will help maintain client access to funding during the current period of regulatory upheaval
- Access to highly experienced traders
- Various methods to suit various needs, including cross-currency repo, basket trades, and a tool to raise US dollars, Euro and other currencies at a relatively lower cost and a stable basis
- The opportunity to achieve additional revenue, without compromising on the safety and liquidity of your portfolio
- The generation of additional returns on your existing securities when lending on an open basis (where on-loan securities may be recalled at any time) without any restrictions on your investment flexibility
- An agent acting on your behalf throughout the transaction process, providing you with comprehensive and customizable reporting
- Comprehensively tested control systems, enabling us to closely monitor and manage transaction risks
- A close relationship between securities lending and custody operations in terms of settlement information, providing efficient management of your trade activity