Imported from previous forum
FPL and the SASLA Sign Memorandum of Understanding
September 21, 2006 – FIX Protocol Ltd. (FPL) and the South African Securities Lending Association (SASLA) signed a Memorandum of Understanding outlining a collaborative approach to develop a best-practice model for straight-through-processing (STP) of securities lending and borrowing transactions. Both organisations believe that agreeing on a universal business definition and utilising the FIX Protocol as a common message standard will increase efficiency and facilitate straight-through-processing.
The organisations will jointly form a Securities Lending and Borrowing Working Group (SLBWG) to share market expertise and collaborate strategically on the project. In the first phase of the initiative, FPL and SASLA will work together to produce guidelines that maintain the integrity of the message structure and to document industry practices to ensure seamless implementation by market participants. A gap analysis will serve as the basis for future developments in the processing of securities lending and borrowing transactions on a global level.
The second phase of the initiative will entail an in-depth review of product coverage and end-to-end processes of the securities lending and borrowing (SLB) transaction lifecycle. The expected results of the project are an increase in transaction transparency and a decrease of operational risk and costs.
“We are pleased to collaborate with SASLA to develop and implement a common protocol for the automation of SLB transactions,” stated Gavin Borrageiro, Co-Chair of the EMEA Southern Africa Executive Committee, FPL.
“Collaborating with a global standards organisation like FPL will guarantee that SASLA is able to deliver the best solution for the industry,” commented Belinda Kasch, Executive Committee Member, SASLA.
If you are a member of FPL and are interested in participating in this Working Group, please contact the FPL Program Office at fpl@fixprotocol.org or +1 (212) 652 4469. The details of the initial meeting will be distributed once confirmed.
The FPL/SASLA Memorandum of Understanding is available on the FPL website at www.fixprotocol.org.
About FIX Protocol Ltd
FIX Protocol Ltd is a non-profit organisation that owns the intellectual property rights of the Financial Information eXchange Protocol (FIX), which is available free of charge from the FPL website, subject to FPL’s copyright and acceptable use policy. FIX is a globally recognised messaging standard enabling the electronic communication of pre-trade and trade messages between financial institutions, primarily investment managers, broker/dealers, ECNs and exchanges. For more information, see www.fixprotocol.org.
About South African Securities Lending Association
SASLA is a forum that independently considers all issues affecting the industry from the borrower, lender and intermediary perspective. Objectives of the association include promoting the lending and borrowing of South African securities and safeguarding the integrity of the industry in South Africa and abroad. SASLA encourages the reform of tax and other legislation for the benefit of the industry, assisting in the orderly, efficient and competitive development of business by establishing standards and guidelines for good working practices. SASLA encourages the exchange of ideas and information, including liaising with regulators, government and other agencies to increase their awareness and understanding of the industry and to assist in the development of appropriate regulation for the industry; cooperating with industry bodies in other countries or internationally in matters of common interest; and promoting awareness of future challenges and opportunities for securities lending. For more information, see http://www.banking.org.za/.
Contact
Daniella Baker, FPL Marketing and Communications Manager,
Daniella.Baker@fixprotocol.org, +44 (0)20 7556 7668