SASLA: ISLA advocates for South Africa
27 March 2026 South Africa
Image: SFT
Opening this year’s South Africa Securities Lending and Collateral Management conference in Cape Town, Ina Budh-Raja, CEO of the International Securities Lending Association (ISLA), reviewed the global market and developments within South Africa.
Predicting tremendous change and challenges ahead, Budh-Raja says she is keen to foster more collaboration on a global scale and highlights the importance of having a professional, credible voice in the industry.
While 2026 came at the back of a bumpy year, it followed a record-breaking year in 2025 which presented a 27 per cent year-on-year increase to US$14.9 billion for securities lending. However, she noted a deepened requirement around growth, with policymakers “desperately looking” for growth opportunities on a jurisdictional and regional basis.
Focusing on South Africa, Budh-Raja noted that it is a market which is capital sufficient but liquidity poor. The region presents much opportunity since its exit from the Financial Action Task Force (FATF) — otherwise known as the ‘grey list’ — and moving to the green list for netting. A move she believes is extremely meaningful for the global market.
“The foundations are there and the doors are open for business,” she noted. “How do we drive that liquidity, working with organisations like SASLA, to bring that international market access to this market? That will be done through building credibility and trust in the market through well recognised frameworks.”
This further development of the market is also being replicated in Nigeria and Kenya. ISLA has participated in discussions in both countries in regards to the evolution of netting.
Further, the association is engaging with the South Africa Securities Lending Association (SASLA) to share its experience, lessons learned, as well as existing issues that the market is facing in Europe. “You have a market here that is very well placed to jump into the driving seat and not have to go through the same hurdles, learn those lessons from us and make progress ahead,” she explained.
Netting in South Africa and Kenya is an ongoing advocacy process for ISLA. Budh-Raja believes this is not only a key lever for the industry, but a game changer for this market.
“We certainly see precedence in the Middle East. Saudi Arabia was a market that, 10–15 years ago, we thought netting would never be possible, but we got there through years of coordinated advocacy and working with the regulators,” she highlighted.
In terms of ISLA priorities for 2026, the association will work to challenge fragmentation, produce standards, advocate for simplification and harmonisation, drive market initiatives for liquidity, and when it comes to digital, ISLA will focus on what this transformation means for the industry and work on the underlying standards to drive harmonisation.
On the European front, there is currently heightened advocacy with competitiveness being a key focus. Significant packages have been released by the EU Commission around market integration and supervision. It has provided ISLA with an opportunity to advocate for this industry when it comes to T+1, capital solutions, solutions around clearing.
In terms of its advocacy work, a key item for ISLA is working on pledge collateral for UCITS to create a level playing field.
“Some of the agenda in Europe is relevant in Africa. Looking at this region, where South Africa is a clear front runner, there is an opportunity to break down some of the barriers when it comes to regional distinctions, to drive a common market approach to market structure,” Budh-Raja added.
Concluding her keynote speech, Budh-Raja highlighted the importance of working together to challenge fragmentation in the markets. She insisted that the underlying standards need to be harmonised and recognisable by regulators and the industry.
She added that by using common platforms, like the Common Domain Model, there is an opportunity to move to a digital future with an underlying common language.
Predicting tremendous change and challenges ahead, Budh-Raja says she is keen to foster more collaboration on a global scale and highlights the importance of having a professional, credible voice in the industry.
While 2026 came at the back of a bumpy year, it followed a record-breaking year in 2025 which presented a 27 per cent year-on-year increase to US$14.9 billion for securities lending. However, she noted a deepened requirement around growth, with policymakers “desperately looking” for growth opportunities on a jurisdictional and regional basis.
Focusing on South Africa, Budh-Raja noted that it is a market which is capital sufficient but liquidity poor. The region presents much opportunity since its exit from the Financial Action Task Force (FATF) — otherwise known as the ‘grey list’ — and moving to the green list for netting. A move she believes is extremely meaningful for the global market.
“The foundations are there and the doors are open for business,” she noted. “How do we drive that liquidity, working with organisations like SASLA, to bring that international market access to this market? That will be done through building credibility and trust in the market through well recognised frameworks.”
This further development of the market is also being replicated in Nigeria and Kenya. ISLA has participated in discussions in both countries in regards to the evolution of netting.
Further, the association is engaging with the South Africa Securities Lending Association (SASLA) to share its experience, lessons learned, as well as existing issues that the market is facing in Europe. “You have a market here that is very well placed to jump into the driving seat and not have to go through the same hurdles, learn those lessons from us and make progress ahead,” she explained.
Netting in South Africa and Kenya is an ongoing advocacy process for ISLA. Budh-Raja believes this is not only a key lever for the industry, but a game changer for this market.
“We certainly see precedence in the Middle East. Saudi Arabia was a market that, 10–15 years ago, we thought netting would never be possible, but we got there through years of coordinated advocacy and working with the regulators,” she highlighted.
In terms of ISLA priorities for 2026, the association will work to challenge fragmentation, produce standards, advocate for simplification and harmonisation, drive market initiatives for liquidity, and when it comes to digital, ISLA will focus on what this transformation means for the industry and work on the underlying standards to drive harmonisation.
On the European front, there is currently heightened advocacy with competitiveness being a key focus. Significant packages have been released by the EU Commission around market integration and supervision. It has provided ISLA with an opportunity to advocate for this industry when it comes to T+1, capital solutions, solutions around clearing.
In terms of its advocacy work, a key item for ISLA is working on pledge collateral for UCITS to create a level playing field.
“Some of the agenda in Europe is relevant in Africa. Looking at this region, where South Africa is a clear front runner, there is an opportunity to break down some of the barriers when it comes to regional distinctions, to drive a common market approach to market structure,” Budh-Raja added.
Concluding her keynote speech, Budh-Raja highlighted the importance of working together to challenge fragmentation in the markets. She insisted that the underlying standards need to be harmonised and recognisable by regulators and the industry.
She added that by using common platforms, like the Common Domain Model, there is an opportunity to move to a digital future with an underlying common language.
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