Changing face of stock-lending and repo

The traditional roles of banks in lending markets is being challenged as the buy-side gets more involved and new players seize the moment

Banks have traditionally sat in the middle of repurchase agreements and securities lending transactions to cover credit risk and distribution, like a shop where the owner controls the price and supply of goods.

In this issue, we look at the changing landscape of repo and stock borrowing and lending, both of which are under pressure from regulation that requires banks to put aside more capital against trades. The solutions proposed increasingly involve more participation from the buy-side.

In the