ISLA Americas: Industry collaboration key as securities finance enters next phase of growth
14 October 2026 US
Image: Nuttawut/stock.adobe.com
Growing market activity, regulatory reform, and evolving market structures are increasing constraints on securities finance participants, prompting renewed focus on industry collaboration, according to the opening panel of the ISLA Americas 3rd Annual Securities Finance & Collateral Management Conference.
Speakers highlighted a market environment characterised by rising trading volumes and growing demand for capital efficiency, while firms continue to face pressure to reduce operational costs and invest in new infrastructure.
Industry experts noted that many initiatives discussed over recent years are now moving into implementation. Developments such as T+1 settlement, central clearing, asset segregation, total return swaps, extended trading hours, and digital assets are reshaping both securities finance and collateral markets, creating fresh operational and regulatory challenges.
A key theme throughout the conversation was whether market profitability and available resources will be sufficient to support the level of technology investment and regulatory adaptation required in the years ahead.
Speakers stressed that many of these challenges cannot be addressed by individual firms alone. Instead, industry coordination through trade associations is playing an increasingly important role in advocacy, market development, standardisation, and wider market transformation efforts.
Regulatory engagement remains a central priority, with an ongoing industry focus on Basel III bank capital reforms and implementation of the US Securities and Exchange Commission’s Rule 10c-1 securities lending reporting framework. Panellists highlighted the importance of maintaining dialogue with regulators to ensure future rules support market liquidity and operational efficiency.
Standardisation was also identified as a critical enabler of growth. Industry initiatives continue to focus on developing legal documentation frameworks, supporting capital-efficient financing structures, and providing greater legal certainty through updated opinions and documentation standards.
As digital assets continue to gain traction, attention is also turning towards establishing common frameworks for tokenised securities and digital collateral. Panellists suggested that industry-wide standards will be essential to avoid fragmentation and support interoperability across markets.
Regional market development remains another area of focus. In the Middle East, Saudi Arabia continues to make progress through the implementation of netting legislation and related regulatory reforms designed to support market growth. Industry participants also pointed to an increasing interest across neighbouring jurisdictions as regulators seek to enhance liquidity and attract international investment.
Meanwhile, Brazil remains one of the most significant growth opportunities for the global securities lending industry. One speaker highlighted the ongoing work to support a major expansion of the country's lending market ahead of its planned transition to T+1 settlement in 2028, with regulators, exchanges, and industry stakeholders working closely together on implementation.
Looking ahead, panellists said digital collateral, tokenised assets, cross-border settlement efficiencies, and capital optimisation tools are expected to remain key areas of focus.
The discussion concluded with a broad agreement that, as securities finance markets continue to evolve, collective cooperation and action will be a key component to delivering the standardisation, advocacy, and infrastructure improvements needed to support sustainable growth.
Speakers highlighted a market environment characterised by rising trading volumes and growing demand for capital efficiency, while firms continue to face pressure to reduce operational costs and invest in new infrastructure.
Industry experts noted that many initiatives discussed over recent years are now moving into implementation. Developments such as T+1 settlement, central clearing, asset segregation, total return swaps, extended trading hours, and digital assets are reshaping both securities finance and collateral markets, creating fresh operational and regulatory challenges.
A key theme throughout the conversation was whether market profitability and available resources will be sufficient to support the level of technology investment and regulatory adaptation required in the years ahead.
Speakers stressed that many of these challenges cannot be addressed by individual firms alone. Instead, industry coordination through trade associations is playing an increasingly important role in advocacy, market development, standardisation, and wider market transformation efforts.
Regulatory engagement remains a central priority, with an ongoing industry focus on Basel III bank capital reforms and implementation of the US Securities and Exchange Commission’s Rule 10c-1 securities lending reporting framework. Panellists highlighted the importance of maintaining dialogue with regulators to ensure future rules support market liquidity and operational efficiency.
Standardisation was also identified as a critical enabler of growth. Industry initiatives continue to focus on developing legal documentation frameworks, supporting capital-efficient financing structures, and providing greater legal certainty through updated opinions and documentation standards.
As digital assets continue to gain traction, attention is also turning towards establishing common frameworks for tokenised securities and digital collateral. Panellists suggested that industry-wide standards will be essential to avoid fragmentation and support interoperability across markets.
Regional market development remains another area of focus. In the Middle East, Saudi Arabia continues to make progress through the implementation of netting legislation and related regulatory reforms designed to support market growth. Industry participants also pointed to an increasing interest across neighbouring jurisdictions as regulators seek to enhance liquidity and attract international investment.
Meanwhile, Brazil remains one of the most significant growth opportunities for the global securities lending industry. One speaker highlighted the ongoing work to support a major expansion of the country's lending market ahead of its planned transition to T+1 settlement in 2028, with regulators, exchanges, and industry stakeholders working closely together on implementation.
Looking ahead, panellists said digital collateral, tokenised assets, cross-border settlement efficiencies, and capital optimisation tools are expected to remain key areas of focus.
The discussion concluded with a broad agreement that, as securities finance markets continue to evolve, collective cooperation and action will be a key component to delivering the standardisation, advocacy, and infrastructure improvements needed to support sustainable growth.
← Previous industry article
ISLA Americas: APAC and Saudi markets target next era of securities lending development
ISLA Americas: APAC and Saudi markets target next era of securities lending development
Next industry article →
ISLA Americas: An opportunity of long term growth and integration in Latin America
ISLA Americas: An opportunity of long term growth and integration in Latin America
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
.jpg)