DELOITTE STUDY ON SECURITIES LENDING BUSINESS AND RESPONSIBLE INVESTMENT STRATEGIES

DELOITTE STUDY ON SECURITIES LENDING BUSINESS AND RESPONSIBLE INVESTMENT STRATEGIES

Deloitte has just published a study on the compatibility of securities lending and responsible investment strategies: public studies, academic views, regular texts and good practices.
https://www2.deloitte.com/fr/fr/pages/risque-compliance-et-controle-interne/articles/pret-titres-investissement-responsable.html 

This Deloitte study is very interesting in several points.

First it reminds the importance of securities lending for the smooth functioning of the financial markets. 

But especially after conducting a review of existing regulations, French and European labels and academic work on securities lending and responsible investment, Deloitte confirms the consistency of securities lending transactions with responsible investment strategies when certain best practices are in place. 

We had reached the same conclusion. See our communication of 15 December 2020. 

Indeed, securities lending and responsible investments are perfectly compatible at Natixis TradEx Solutions which, as an expert service provider, brings all its know-how to its clients to increase the performance of their portfolios.

In fact, we are proud to note that the good practices highlighted in this study have already been implemented within Natixis TradEx Solutions.

For example:

- Engagement:

• Our Clients, who  wish so, can request that the loaned securities be recalled for annual general meetings in order to exercise their voting rights.
• We have a clear tax policy in place for securities lending.

- CSR rating of our counterparties

• Our vote broker takes into account the analyzes of our dedicated CSR questionnaire.

- Transparency

• Our Clients benefit from full transparency on all the operations we trade.
• Our dedicated reports supplement this information during meetings with our Clients.

- A secure ecosystem

• All our operations can be callable within 24 to 48 hours.
• We have established a secure environment not only operationally but also legally.

In short, we are among the best standards!