TORONTO--(BUSINESS WIRE)--
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 broker-dealers.
"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 associations."
The four founding companies account for more than 90 percent 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."
About CASLA
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 financial markets.
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 www.cibcmellon.com.
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,
visit: http://www.northerntrust.com.
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.
Source: Canadian Securities Lending Association
Contact: CIBC Mellon
Rashi Sharma, +1 416 643 6562
or
Northern Trust
John O'Connell, +1 312 444 2388
or
RBC Dexia
Alex Clelland, +44 (0)20 7002 2009
or
State Street Corporation
Marie McGehee, +1 617 664 1898