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The Equity Securities Lending Market

Author

Listed:
  • Jonathan Carroll

    (Reserve Bank of Australia)

  • Ashwin Clarke

    (Reserve Bank of Australia)

Abstract

An equity securities loan is an arrangement in which one party (the lender) agrees to transfer an equity security to another party (the borrower) temporarily, usually in exchange for collateral and a fee. The market for securities loans is an important component of Australia’s equity market and contributes to its efficiency and smooth functioning. Regulatory developments since the global financial crisis are contributing to significant changes to the equity securities lending market globally, including in Australia. This article discusses some of these changes and how participants in the market could respond.

Suggested Citation

  • Jonathan Carroll & Ashwin Clarke, 2014. "The Equity Securities Lending Market," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 31-42, December.
    • Handle: RePEc:rba:rbabul:dec2014-05
    as

    Download full text from publisher

    File URL: https://www.rba.gov.au/publications/bulletin/2014/dec/pdf/bu-1214-5.pdf
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    References listed on IDEAS

    as
    1. Belinda Cheung & Mark Manning & Angus Moore, 2014. "The Effective Supply of Collateral in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 53-66, September.
    2. Rehlon, Amandeep & Nixon, Dan, 2013. "Central counterparties: what are they, why do they matter and how does the Bank supervise them?," Bank of England Quarterly Bulletin, Bank of England, vol. 53(2), pages 147-156.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tongxia Li & Tze Chuan ‘Chewie’ Ang, 2022. "Corporate vote trading in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1065-1105, April.

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