About the Committee
RMA's Committee on Securities Lending was formed in 1983. The objective of the committee is to promote sound securities lending practices within its members and the industry. In its early years, it embarked on a series of educational programs designed to enhance the professionalism of bankers engaged in securities lending. These programs help to solidify industry standards, particularly in the areas of credit, operational, and market risk management. The committee also began capturing statistical information about the industry. Beginning in 1984, the committee conducted a survey of securities lending activities of banks twice a year. This information, which was released only to those institutions participating in the survey, represented the major source of information about lending practices as well as market trends. The committee and its member institutions have also developed an aggregate composite survey that measures various performance indicators within the securities lending marketplace. Currently, approximately 19 financial institutions participate in the RMA composite securities lending survey.
The committee also sponsors several roundtable discussions throughout the year as well as three major conferences—one in the U.S. in October, one in Asia in March, and the newest in Latin America in July/August biennially. The roundtables bring together groups of 20 to 45 professionals each and are designed to facilitate discussion on issues directly affecting the lending institutions.
The Conference on Securities Lending, which has grown to attract more than 650 individuals from banks, brokerage houses, pension funds, endowments, and other institutional lenders, is an attempt to bring together all the players involved in the business. In addition to providing topical program content, the conference also offers an opportunity to meet with customers and other service providers from around the world. Approximately 20% of the attendees are from outside the U.S.
From 1992–2009, RMA and the International Securities Lending Association (ISLA) based in London jointly sponsored the annual Conference on International Securities Lending. This was RMA's first international event. The 2009 conference in Barcelona (our 18th) exceeded 400 attendees representing individuals involved in the securities lending markets from Europe, Asia/Pacific, Africa, and North America. In March 2009, RMA and the Pan Asian Securities Lending Association (PASLA) based in Hong Kong jointly sponsored the 6th Annual Conference on Asian Securities Lending. The conference, held in Kuala Lumpur, Malaysia, attracted over 150 attendees from the region, Europe, and the U.S. In January 2008, the new Conference on Latin America Securities Lending, held jointly with SIFMA-SLD attracted over 150 attendees from the U.S., Europe, Asia, and the region.
The Committee on Securities Lending also publishes Securities Lending Update, a periodic newsletter, and bulletins on individual topics. In addition, the committee has published articles in various magazines and publications, including, The RMA Journal and Industry Imperatives, which have a joint circulation of approximately 45,000 in the U.S. and abroad.
The committee maintains an active dialogue with other associations, including The Securities Industry Financial Markets Association’s (SIFMA) Securities Lending Division, ISLA, and PASLA. Information about the activities of these groups is regularly furnished to RMA member institutions at roundtables and other meetings.
In addition, the committee also discusses various issues with the regulators in the U.S. and in other countries. As a professional association with extensive contacts in the industry, RMA has been able to facilitate meetings with senior-level officials of regulatory agencies. RMA uses some of the revenues generated by the conference and roundtables to engage consultants and lawyers to assist the committee in its other activities. RMA, working with a Washington law firm, sponsored and filed an exemption application to the Department of Labor involving international lending for ERISA clients. After more than twelve years the exemption was granted and became effective January 2007. The association was also one of the three funding and active partners in the U.S. industry project on Agent Lending Disclosure, completed in November of 2006.
The different activities of the committee have driven the organizational structure that the committee adopted in April 1996 and last revised in February 2004. The structure includes a committee chairperson and six members who are responsible for the group's main functional areas and sub-committees:
• Legal & Regulatory Development
• Membership & Industry Affiliate Liaison Issues
• Professional Development and Attendance Events
• Risk Standards, Performance & Communications
• Tax & Operations
The committee is also responsible for various roundtables and forums including, securities lending institutional contacts, and securities lending operations and technology managers. These groups meet during the year to discuss issues pertaining to risk management issues within their products and functions.
The chairperson serves a two-year term and appoints three members of the committee; the institutional member representatives elect the remaining three members. Committee members are responsible for selecting individuals to assist the committee on the projects and programs that arise.