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Securities Financing Industry News | Global PSSL issues recommendations on the transparency of the securities financing value chain


The Global Principles for Sustainable Securities Lending (Global PSSL) group has issued recommendations aimed at enhancing transparency in the securities lending value chain.

Global PSSL’s seven draft recommendations, published yesterday and open for consultation until the end of August 2021, detail the roles that stakeholders can play in the sustainable securities lending value chain.

Designed to increase the transparency of the securities lending market and provide a means of ongoing review and assessment through voluntary collaboration, the recommendations propose a supervisory role for regulators and central banks as well as for international organizations.

They also confer a role on Global PSSL as the guardian of the public interest in sustainable securities lending with each recommendation, according to Global PSSL, designed to be “forward-looking, unifying and inclusive, transparent, dynamic and aligned with the policy of Global PSSL. themes. ”

The recommendations were drafted by Roelof van der Struk of Dutch pension fund PGGM and CEO of Global PSSL Radek Stech and are part of a larger review with Global PSSL contributors and regulators in Africa, Australia, UK United and the United States.

Van der Struik and Stech issued a joint statement on the recommendations: “Sustainable securities lending can add value to owners of capital and to the broader sustainable finance agenda.

“Fragmented and self-interested securities lending can only add value to some of the best-informed and best-informed stakeholders and, in turn, hamper progress towards a larger community supporting financial markets. Global PSSL works in favor of the former while engaging the latter.

They add: “These recommendations are the result of long-term work dedicated to the widespread adoption of sustainable work practices. This alignment and cooperation has tangible value for all parts of the securities lending value chain. “

Global PSSL is a non-profit social enterprise that provides a hub for all key stakeholders to advance sustainable securities lending and the broader global sustainable finance market, through market leadership, research and education, international collaboration and tangible impact.

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