ISLA: Emerging markets update 18 June 2014Berlin Reporter: Stephen Durham
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Russia and Brazil have been highlighted as key emerging markets by a panel at the International Securities Lending Association conference in Berlin.
There are just over $100 million worth of securities on loan in Russia, with 23 names currently being lent. The market in Brazil is more advanced still with $1.7 trillion out on loan, as well as 200 names being leant.
The panel revealed that Russia's market is a concentrated one, with 60 percent of its market capitalisation made up of top names.
50 new laws and and a five year plan have been key to kick starting Moscow's rise as an international financial centre, which came about as part of drastic reforms over the past two years.
Other changes have been the introduction of T+2 settlement, the establishment of a central securities depository and moves to develop a 'mega-regulator'.
Brazil's BM&FBOVESPA is currently remodelling the country's securities lending service through several improvements that are set to make web trading available, increase transparency and simplify operational procedure.
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