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The International Securities Lending Association is to release a Clause Library, a collection of wording variants, and a model Taxonomy for distinct business outcomes, in the lead up to full digitisation.
The primary objective of the ISLA Clause Taxonomy and Library Project, due for next month, is to build an industry-wide, foundational clause library for use with the Global Master Securities Lending Agreement (GMSLA). ISLA says it is looking to work on a cross-industry basis to better understand how digital formats of its master agreements will benefit members and the industry more broadly.
Digital versions of market standard master agreements will, ISLA says, spur the development of an on-line digital environment which will allow firms to produce, deliver, negotiate and execute documents, and capture, process and store data from such documents. “This will, over time, be an integral component of any future digitalised regulatory reporting regime,” ISLA says.
Combined with the development of other ISLA technology initiatives such as the CDM, the clause libraries will allow the development of an ecosystem of interoperable platforms to support business.
A separate Common Domain Model (CDM) design group is working to develop the CDM for the securities lending industry, introducing a common set of processes and data standards to increase automation and efficiency in the securities lending markets. This will provide a foundation upon which smart securities lending contracts can be developed.
