Transformations in the US Securities Finance Market

This technical report outlines the significant transformations occurring in the US securities finance market, driven by regulatory changes and the introduction of mandatory repurchase agreement clearing for US Treasuries by 2026. The report details how these changes are expected to enhance market stability, reduce capital costs, and improve transparency through the use of central counterparties (CCPs). It discusses the entry of new market players such as CME Group and the Intercontinental Exchange (ICE), which are anticipated to foster competition and innovation in the market. Additionally, the rise of synthetic securities finance offerings is examined, highlighting their advantages over traditional lending methods. The report also addresses the expansion of the Options Clearing Corporation (OCC) and the National Securities Clearing Corporation's (NSCC) initiatives, which aim to centralize clearing and reduce systemic risks. The role of technology providers like Broadridge in facilitating these changes is emphasized, as they develop solutions to meet regulatory requirements and enhance operational efficiency.