Repo vs SecurityLending

[tonyjohn456]

Can fpml 5.9 repo model be used to map Security Lending product trade? As there is no fpml standard product model defined for SL (Although FPML Ext. has).
Even though the data structure between Repo and SL is more or less the same, but A “security borrow/security Lend” Security Lending product might not be properly supported by repo model.

[iyermakova]

Hi tonyjohn456,

As you said yourself, theoretically Repo could be used for SB/SL due to similar economics, but the Repo model is missing lots of fee structures needed for SB/SL.

FpML just announced – FpML Cross Asset Class Product Working Group – Call for Participation. The group will further develop and maintain the FpML product architecture [read the announcement HERE]

You can bring your SB/SL confirmation samples and proposal to extend FpML products to this group, once it starts working.

Best regards,
Irina Yermakova

• This reply was modified 5 years, 9 months ago by iyermakova.

[tonyjohn456]

Hi Irina,

Thanks for the replying.
I have enrolled the Cross Asset Class Product Working Group, happy to contribute and propose the products extension.

[Anonymous]

Hello,

A key difference between repo and securities lending is that the repo market overwhelmingly uses bonds and other fixed-income instruments as collateral, whereas an important segment of the securities lending market is in equities.

Best,
Nguyen Thanh
(88juditop.com)

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