Five associations in the securities lending markets, including ISLA, are coming together to form a “Global Framework for ESG and Securities Lending”. 

The collaborative working group, which first meet in July, is founded by five organisations “to facilitate collaboration and better coordinate their efforts”:

• Canadian Securities Lending Association (CASLA)

PostTrade 360 Nordic 2024

• International Securities Lending Association (ISLA)

• Pan Asia Securities Lending Association (PASLA)

• Risk Management Association (RMA)

• South African Securities Lending Association (SASLA)

Detail is available in a press release.

The group will focus on issues including the integration of environmental, social and governance (ESG) factors in the securities lending market, as well as “advocating the benefits of transparent and regulated short-selling to liquid and sustainable capital markets” – engaging with regulators and other standard-setting bodies of all regions.

As one of the first tasks of the group, a library of ESG resources will be established and featured on the websites of each association. It is to reflect the rapid evolution of ESG in the securities lending market.