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Developments in the global securities lending market

Author

Listed:
  • Matthew Dive

    (Bank of England)

  • Ronan Hodge

    (Bank of England)

  • Catrin Jones

    (Bank of England)

  • James Purchase

    (Bank of England)

Abstract

Securities lending plays an important role in supporting financial markets. For example, it can improve market liquidity, potentially reducing the cost of trading and increasing market efficiency. But by increasing the interconnections between institutions it can pose potential risks to financial stability, which are exacerbated by a lack of transparency in the securities lending market. Since the onset of the financial crisis, market participants have attempted to address some of these risks, and fundamental changes to market infrastructure are being discussed, such as the use of central counterparties. New regulations under way to improve the resilience of the financial system may also impact both the risks to financial stability from securities lending and its benefits.

Suggested Citation

  • Matthew Dive & Ronan Hodge & Catrin Jones & James Purchase, 2011. "Developments in the global securities lending market," Bank of England Quarterly Bulletin, Bank of England, vol. 51(3), pages 224-233.
    • Handle: RePEc:boe:qbullt:0057
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    File URL: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2011/developments-in-the-global-securities-lending-market.pdf?la=en&hash=1F0D63158DF86F5E24F8AC810072EB8F87CDFE44
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    References listed on IDEAS

    as
    1. Tobias Adrian & Adam B. Ashcraft & Hayley Boesky & Zoltan Pozsar, 2013. "Shadow banking," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 1-16.
      • Tobias Adrian & Adam B. Ashcraft & Hayley Boesky & Zoltan Pozsar, 2010. "Shadow banking," Staff Reports 458, Federal Reserve Bank of New York.
    2. Mr. Manmohan Singh & James Aitken, 2010. "The (Sizable) Role of Rehypothecation in the Shadow Banking System," IMF Working Papers 2010/172, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Massa, Massimo & Manconi, Alberto & Kempf, Elisabeth, 2017. "Canary in a Coalmine: Securities Lending Predicting the Performance of Securitized Bonds," CEPR Discussion Papers 11993, C.E.P.R. Discussion Papers.
    2. Mr. Manmohan Singh, 2011. "Velocity of Pledged Collateral: Analysis and Implications," IMF Working Papers 2011/256, International Monetary Fund.
    3. Kushal Balluck, 2015. "Investment banking: linkages to the real economy and the financial system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 4-22.

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