First industry association dedicated to securities lending in Canada
TORONTO, April 27 /CNW/ - Today, CIBC Mellon, Northern Trust, RBC Dexia
and State Street Corporation announced the formation of the Canadian
Securities Lending Association (CASLA) to advocate on behalf of all securities
lending market participants in Canada.
CASLA seeks to enhance the public's understanding of securities lending,
encourage the adoption of best practices and work with regulators and other
industry associations to ensure an efficient and secure marketplace. CASLA
will advocate for the common interests of securities lending market
participants, including custodian banks, beneficial owners, asset managers and
"This is a major step forward in the continuing development of the
Canadian securities lending market," said the founding members in a joint
statement. "We are pleased that our industry now has a collective voice in
Canada and will continue to develop strong linkages with similar global
The four founding companies account for more than 90 per cent of the
Canadian securities lending market.
Other securities lending associations around the world include the
Australian Securities Lending Association (ASLA), International Securities
Lending Association (ISLA) in Europe, Pan Asian Securities Lending Association
(PASLA) and the Risk Management Association (RMA) in the U.S.
CASLA will canvas industry firms and professionals for membership in the
near future, and will hold elections for executive positions in 2010.
Participants in the beneficial owner and borrower and lender communities are
encouraged to join.
The securities lending market in Canada has been active for several
years. In securities lending transactions, beneficial owners such as mutual
funds, pension funds and other institutional investors lend securities to
borrowers often through intermediaries such as custodian banks. At year-end
2008, the Canadian industry had CAD $886 billion available for lending and CAD
$119 billion on loan according to U.K.-based Data Explorers.
Notes for editors
"Securities lending plays an integral role in today's financial markets
by providing greater liquidity, more efficient price discovery and
opportunities for institutional investors to earn additional portfolio
income," said Rob Chiuch, executive director and head of trading at CIBC
Mellon. "CASLA will work with all market participants to encourage the
adoption of global best practices, enhance market transparency and ensure the
long-term viability of securities lending in Canada."
"CASLA will work directly with Canadian regulators and stakeholders on
issues that are relevant to its members," said Dave Sedman, manager, global
securities lending at The Northern Trust Company, Canada Branch. "As a local
organization, CASLA will develop solutions that are suited to Canada's legal
and regulatory framework, and make sense for this marketplace."
"CASLA is designed to give the industry a unified voice specific to the
Canadian legal and regulatory framework, with the involvement of all market
participants," said Mark Fieldhouse, director of technical sales at RBC Dexia.
"The establishment of a forum where regulators and stakeholders can address
pertinent issues will play an important part in the further successful
evolution of Canada's vibrant securities lending market."
"We are delighted to be one of the founding members of the Canadian
Securities Lending Association, an industry association that seeks to enhance
the public's understanding of securities lending, a key area within the
financial services industry," said Don D'Eramo, senior managing director,
securities finance at State Street. "CASLA will allow members to exchange
ideas and draw upon best-practices in managing issues affecting securities
lending in Canada."
The Canadian Securities Lending Association (CASLA) works with Canadian
regulators, self-regulatory organizations and other market participants to
ensure the long-term viability of the Canadian securities lending industry and
the adoption of best practices. CASLA seeks to enhance the public's
understanding of securities lending and the role it plays in Canada's
About CIBC Mellon
CIBC Mellon is 50-50 jointly owned by Canadian Imperial Bank of Commerce
and The Bank of New York Mellon Corporation. CIBC Mellon Global Securities
Services Company is a leading provider of financial services for institutions
and corporations, providing superior asset servicing, multicurrency
accounting, information delivery, securities lending and foreign exchange
services in Canada. CIBC Mellon is part of The Bank of New York Mellon, which
has US$19.5 trillion in assets under custody and administration and more than
US$881 billion in assets under management. Visit CIBC Mellon's website at
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of
investment management, asset and fund administration, fiduciary and banking
solutions for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has a network of
85 offices in 18 U.S. states and has international offices in 15 locations in
North America (including Toronto), Europe, the Middle East and the
Asia-Pacific region. The Northern Trust Company operates in Canada as The
Northern Trust Company, Canada Branch which is an authorized foreign bank
branch under the Bank Act (Canada). As of March 31, 2009, Northern Trust had
assets under custody of US$2.8 trillion, and assets under investment
management of US$522.3 billion. Northern Trust, founded in 1889, has earned
distinction as an industry leader in combining exceptional service and
expertise with innovative products and technology. For more information,
About RBC Dexia
RBC Dexia Investor Services offers a complete range of investor services
to institutions worldwide. Our unique offshore and onshore solutions, combined
with the expertise of our 5,500 professionals in 16 markets, help clients grow
their business and sustain enhanced performance through efficiency
improvements and robust risk management processes. Equally-owned by RBC and
Dexia, the company ranks among the world's top 10 global custodians with
US$1.9 trillion in client assets under administration.
About State Street Corporation
State Street Corporation (NYSE: STT) is the world's leading provider of
financial services to institutional investors including investment servicing,
investment management and investment research and trading. With US$11.3
trillion in assets under custody and US$1.4 trillion in assets under
management at March 31, 2009, State Street operates in 27 countries and more
than 100 geographic markets worldwide. For more information, visit State
Street's website at www.statestreet.com.
For further information:
For further information: Media Contacts: Rashi Sharma, CIBC Mellon,
(416) 643-6562; John O'Connell, Northern Trust, (312) 444-2388; Alex Clelland,
RBC Dexia, +44 (0)20 7002 2009; Marie McGehee, State Street Corporation, (617)