Stock lending and short selling are usually done when it is believed that the stock price will fall, so the borrower can make profits by selling the shares at their current price, buying them back at a lower price and returning them to the lender. This training program is designed to explain the mechanism of securities lending; It also covers risk and its management and regular reassessment of both the lender/borrower's security and its associated guarantees; As well as decisions related to profits and the regulations and procedures governing this activity.
At the end of the training program, the participant should be able to:
1 What is Securities Lending?
2 The Purpose: Why Do Lenders Lend
3 Participants and structure
4 Trading Strategies
1 Lenders, Borrowers, and Intermediaries
2 The Lender’s Perspective: Motivations and Considerations
3 The Borrower’s Perspective: Motivations and Considerations
4 Third-party lending agents
5 Central counterparties
1 Pre-trading, Locates
2 Trade execution
3 Pre-settlement
4 Settlement
5 Buy-ins
6 Mark to Market and Margin calls
7 Recall/return of lent settlements
8 Fees
1 Equity vs Fixed Income
2 Fundamental collateral concepts
3 Margin: Purpose
4 Types of collateral
5 Re-hypothecation
1 Global Master Securities Lending Agreement (GMSLA)
2 Securities lending agency agreement
3 Global Master Repurchase Agreement (GMRA)
1 Securities bookkeeping: Definition
2 Importance of updating books
3 Updating books and records for lent/borrowed securities, cash and non-cash collateral, fees and rebates
1 Corporate actions: Overview
2 Income
Cash dividends
Lent securities
Short sale proceeds
Lent/borrowed equity
3 Voting
4 Tax
1 Risks and mitigating factors
Credit Risk
Market Risk
Legal Risk
Operational Risk
Reputation Risk
1 Introduction to Regulations
2 EU Short Selling
3 Securities Finance Transactions Reporting
4 Central Securities Depository Regulations
5 Liquidity Coverage Ratio/ Net Stable Funding Ration
6 Uncleared Margin Rules
1 Global Financial Crisis (GFC) Causal Factors
2 Capital and Leverage
3 What Happened in Securities Finance?
Basic understanding of securities and investments
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Names of the training programs that are integrated (enriched) with the training program:
Names of the training programs that after the training program:
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