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Asian sec lending market more nuanced than ever - Solway
07 March 2017
BNY Mellon's Paul Solway is a market veteran having spent 14 years based out of Hong Kong.
Securities finance participants have built up a more nuanced
approach when it comes to doing business in Asia.
Key considerations in the past, such as basic frameworks and
inventory levels, have morphed into more sophisticated
considerations in recent years.
"Now, it’s more about the ability to finance,
entity type, collateral concentration and tax issues,"
said Paul Solway, managing director at BNY Mellon.
Solway is a market veteran having spent 14 years based
out of Hong Kong.
He is also the co-chair of Asian securities finance trade
body PASLA and opened the group’s annual
conference in Seoul this week.
PASLA was set-up in Hong Kong in 1995 and has been the
driving force behind the Asian SBL market evolution.
"There are currently nine active equity markets for lending
in Asia," Solway added.
"Eventually, when India and China develop offshore lending,
we will really have our hands full."
Solway said that Japan and South Korea were the standout
markets for lending revenues in 2016. Hong Kong, meanwhile, was
Glenn Horner -, chair of RMA's securities lending
committee and chief regulatory officer of securities finance at
State Street - joined Solway on stage at the start of the PASLA
He said "disruptive forces" over the past six months such
as, Brexit and Donald Trump's administration, will play a role
in the regulation of the global securities lending market,
including Asia, going forward.