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 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 at PwC Luxembourg.

The different modules will be presented by experts in derivatives.

Laurent Dubois is a director at PwC Luxembourg with over a decade of experience in the banking industry and several years in asset management on both product and corporate sides. Since joining PwC in 2008 within the audit practice, he has specialised in alternative investments, focusing on private debt structures and fund of funds. Laurent has worked closely with leading promoters and asset managers, gaining extensive knowledge of the asset management sector and its challenges. He holds the title of Réviseur d’entreprises agréé in Luxembourg and has contributed to projects for clients such as Ardian, Lombard Odier, Degroof Petercam, and BBH.