At a time of low interest rates, securities financing transactions are more than ever the solution available to clients hunting for yields. Every day, CACEIS’ team of experts works to unearth market opportunities for its clients.
CACEIS offers investors the opportunity to benefit from securities lending and borrowing, as well as repo agreements, relying on its in-depth knowledge of the regulatory environment and the diversity of its trading strategies. The Securities Finance & Repo teams have developed a range of tailored solutions that can be adapted to each investor’s risk profile and investment horizon. These solutions come with a comprehensive array of services from front to back-office.
SECURITIES LENDING AND COLLATERALISED FINANCING SOLUTIONS
CACEIS’ Securities Finance & Repo team is organised around three types of service.
- Securities lending solutions are aimed at clients seeking higher returns. “As experts, we help our clients every step of the way to design a tailor-made programme according to their goals and constraints” says Donia Rouigueb, Head of Sales Securities Finance & Repo at CACEIS. Under the ‘Agent Programme’, CACEIS is mandated by its clients to lend their securities with a choice of borrowing counterparties. The ‘Principal Programme’ meets the needs of clients wanting a single counterparty with simplified setup: CACEIS is their single point of contact. Are the assets not held in custody with CACEIS? The Remote option is unique to CACEIS and is intended for clients that have securities deposited with several custodians. CACEIS can access all portfolios using a secure connection to the systems of the depositaries holding the securities.
- Securities borrowing solutions are more specifically targeted at clients wanting to meet regulatory needs and/or pursue their own investment strategies. Clients can ask CACEIS to borrow securities to cover these needs. An automatic solution, the Auto-Borrow Programme, could be offered in an optimised scheme using an STP flow from front to back-office.
- Financing solutions in the form of securities lending or repurchase agreements allow clients the opportunity to meet occasional financing management needs.These solutions are aimed at all types of investors. They take advantage of CACEIS’ expertise as a major player in the asset servicing industry: a highly experienced team with in-depth knowledge of underlying assets, regulatory requirements and market practices, as well as rigorous operational management along the whole of the front-to-back office chain.
A RESOLUTELY CLIENT-FOCUSED TEAM OF EXPERTS
Dan Copin, Group Head of Securities Finance & Repo at CACEIS, recently strengthened his team with experts each having between 10 and 15 years of experience on financial markets. He encourages close collaboration between traders and sales teams: “We maintain relationships with numerous market counterparties as well as our clients so that we can identify mutual opportunities every day. Not only do we propose and manage market trades, we also support our clients so that they can make decisions in their best interests”.
This hub of expertise has further grown this year with the integration of KAS Bank into CACEIS. The Dutch bank has indeed solid expertise in this area, especially in relation to pension funds, allowing CACEIS to increase its local presence in an expanding market segment. “We are always there for our clients, giving them the information needed to understand market developments, and be proactive,” adds Donia.
In 2020, the Securities Finance & Repo teams will be on hand to help clients meet new regulatory requirements. Indeed, securities lending and borrowing transactions will be subject to SFTR (Securities Financing Transaction Regulation) reporting. Moreover, phase 2 of the CSDR (Central Securities Depositories Regulation) will probably encourage market participants to borrow securities in order to avoid compulsory repurchase proceedings if settlement/delivery is suspended. Bear in mind that this situation could correspond to significant costs.
CACEIS’ securities lending/borrowing offer has been highly successful thanks to its flexibility and the quality of support for clients, as well as to growing interest from institutional investors, who were not active a few years ago.
This proximity to clients and the quality of services provided are now recognised by the market, with prizes at the Global Investor ISF Awards in London over the last three years. These results are a reflection of the excellent image of CACEIS in this domain.
CACEIS has consolidated its position as a trusted partner that enables its clients to access the securities lending market on the best possible terms.