Securities financing - Repos, securities lending & borrowing - Foundation

Welcome to our training course on Securities Financing Transactions (SFTs). This course is designed to provide you with a foundational understanding of the mechanisms and importance of SFTs in the financial markets. Securities financing transactions, including repurchase agreements (repos), securities lending and borrowing play a crucial role in providing liquidity, facilitating short-selling, and enhancing market efficiency.

In close collaboration with PwC's subject matter experts, PwC's Academy has developed a foundational training course covering the key concepts, structures, and functions of SFTs, but also the risks involved, and the strategies employed by market participants.

By the end of this training, participants will be able to:

• understand the general characteristics of repurchased agreements and securities lending & borrowing;
• gain an in-depth understanding of how these instruments operate;
• understand how they can best be used on the market to protect against risks or generate additional margin on a pool of assets.

• Definitions and overview
  • Repo:
    • Definition and types of repos (overnight, term repos)
    • Basic components: buyer, seller, collateral, and agreement terms
    • Types of collateral used (e.g., government bonds, treasury securities)
    • Collateral valuation and risk assessment
  • Securities lending and borrowing:
    • What is securities lending?
    • Objectives of lenders and borrowers
    • Participants and stakeholders on the market (lenders, borrowers, intermediaries, third party agents, global custodians and central counterparties
• High level description of trading activities and trade lifecycle
• Risk & protection framework:
  • Why the need for protection
  • GMRA and annexes
  • GMSLA
  • Securities lending agency agreements

Topics are illustrated by numerous examples.

This training is coordinated by Laurent Dubois, Director and Solimane Bsiss, Senior Manager at PwC Luxembourg.

Laurent is active in our Assurance practice in managing and delivering a diverse range of assurance engagements toward Alternative and Banking actors to local and international clients and PwC offices.

He has exposure to a wide range of valuation methodologies, a practical understanding of the effective strategies delpoyed by its clients in the context of financial reporting.

Laurent is Réviseur d’entreprises agréé (REA).

Solimane is senior manager within our Valuations Services (VS) practice and leads a high-performance quantitative team specialising in the valuation of derivatives and structured products as well as private debt.

Solimane joined PwC in 2008 and has gained extensive knowledge and experience in the field of valuation of financial assets. He has extensive experience working on various valuation models such as discounted cash flow models, credit spread models, black models, Monte Carlo simulation, among others.