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The International Securities Lending Association (ISLA) has announced that the collaborative global group formed by five securities lending industry associations will be formally known as the Global Alliance of Securities Lending Associations (GASLA).
The working group, formed in September, comprises of ISLA, the Canadian Securities Lending Association, the Pan Asia Securities Lending Association, the Risk Management Association, and the South African Securities Lending Association.
GASLA will act as a single voice promoting transparency and standardisation across global securities lending markets, including the integration of ESG principles and a digital evolution that facilitates efficient, liquid and sustainable capital markets.
The working group will collaborate with stakeholders, regulators, policymakers and standard-setting entities across all regions.
In addition to its formal name announcement, GASLA has published a best practice voting guide concerning voting and shareholder engagement.
The guide aims to help lenders that wish to align their securities lending programmes with wider ESG factors, particularly around the governance (the “G” of ESG) areas of voting, stewardship and active ownership.
In the guide, GASLA states it supports active engagement through industry standard legal documentation and effective safeguards, such as borrowers warranties and the right of a lender to terminate a loan.
