Independent Oversight Of Your Stock Lending Program

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Independent Oversight Of Your Stock Lending Program

  1. 1. Data Explorers’ Independent Securities Lending Compliance and Risk Management Solution “ It is our recommendation that clients suspend securities lending activity unless loan arrangements are well understood and are comfortable with the risks associated with their program. “ - Watson Wyatt, November 2008
  2. 2. DataExplorers is the world’s only securities lending consultancy. We do not operate in any other areas. 120 clients provide more than 3 million transactions a day from over 18,000 separate funds Help beneficial owners and custodians manage securities lending risk (Generate risk adjusted returns and understand your exposures) Help beneficial owners and custodians understand and manage their securities lending program performance (Benchmark yourself against over 110 other programs ) Coverage of $9 trillion -over 75% of securities available globally (1) (Across asset classes) (1) As of December 17 th , 2008 Coverage of over 200,000 global securities Available as data feeds, Excel Add-in and Web applications Mayfair Connecticut Mid Town
  3. 3. Our offering is comprehensive and tailored to your specific needs 4. Specialist Consulting Services Obtain independent advice on your securities lending programme revenue opportunities balanced with risk perspective
  4. 4. Client Testimonials <ul><li>“ Fortis Securities Financing Group has an ongoing dialogue with </li></ul><ul><li>Data Explorers on a wide range of market topics. Discussion </li></ul><ul><li>between Fortis and Data Explorers are of a great value as </li></ul><ul><li>these topics of conversation are approached from a different angle. </li></ul><ul><li>Fortis Bank uses Data Explorers’ services as an independent </li></ul><ul><li>consultant. Every new lender in the market should consult </li></ul><ul><li>Data Explorers in order to find the most suitable route to </li></ul><ul><li>market. We congratulate Data Explorers with their key position </li></ul><ul><li>in the industry and look forward to future challenges.” </li></ul><ul><li>Wouter van der Ploeg </li></ul><ul><li>Director Securities Financing Group </li></ul><ul><li>Fortis Bank </li></ul>“ Data Explorers' review and recommendations have given us the tools to move from average to industry best practice. We are already reaping the benefits of this in terms of Securities Lending returns.” Rob van Oostveen COO Equities ABN AMRO Asset Management
  5. 5. Customer case studies: tailored solutions
  6. 6. <ul><li>Our reports provide risk analysis of securities lending and cash reinvestment risks We provide outputs such as Value at Risk (VaR), Expected Loss on Default (ELD) and Risk Premium (RP) Match risk with performance benchmarking to provide Risk-adjusted Returns –we enable you to discover the minimum fee required for risk taken on or break even fee We provide independent, expert commentary and perspectives Our reports enable you to have visibility into your entire loan book in one report, quickly analyze margin levels across counterparts, and assess the value of indemnification </li></ul><ul><li>Your solution to regulators’ increasing demands on beneficial owners to monitor risk in SL programmes </li></ul><ul><li>Your ability to identify your risks early to prevent losses </li></ul><ul><li>Written and explained with the non-expert audience in mind </li></ul><ul><li>Utilises industry-standard terminology for risk and accountancy experts </li></ul>We can help you understand and manage interest rate, credit and counterpart default risk
  7. 7. We can help you understand your performance relative to your peers and to act accordingly
  8. 8. <ul><li>Our reports summarise all aspects of securities lending programme in one page </li></ul><ul><li>We provide performance and risk strengths and weaknesses with actions required </li></ul><ul><li>Our traffic light system allows for immediate clarity and summary </li></ul><ul><li>We identify your Top 10 counterparts and securities to provide additional colour </li></ul><ul><li>Our market perspective identifies key developments in securities lending </li></ul><ul><li>You obtain independent, unbiased analysis and advice </li></ul><ul><li>You can communicate key business metrics to non-experts in a clear, easy to understand manner </li></ul><ul><li>You can focus immediately on the actions required </li></ul><ul><li>You will have immediate clarity of the strengths and weaknesses of your programme </li></ul><ul><li>You can comply with the increased regulatory guidance for boards to monitor securities lending activities </li></ul><ul><li>You can rely on an independent third party to prepare it and explain it </li></ul>We can produce two-page reports for your board of trustees to help you comply with regulatory guidance
  9. 9. Summary and next steps Ensure peace of mind in relation to your securities lending program Comply with your fiduciary requirements in an easy, cost effective manner Secure true, independent assessment of your program’s performance and risks Communicate with your internal and external stakeholders in a simple, transparent manner to increase confidence in your operation We can provide a comprehensive oversight solution for your lending program
  10. 10. Contact Details <ul><li>EMEA & Asia </li></ul><ul><li>Alexander Hofmann, Sales Specialist </li></ul><ul><li>Data Explorers </li></ul><ul><li>2 Seething Lane </li></ul><ul><li>London EC3N 4AT </li></ul><ul><li>E: alex.hofmann@dataexplorers.com </li></ul><ul><li>T: +44 (0) 207 264 7602 </li></ul>

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