Exclusive securities lending agreement: Difference between revisions

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{{Anat|gmsla|}}
{{Anat|gmsla|}}
{{wfmd|ESLA}}
{{fwmd|ESLA}}
An [[exclusive securities lending agreement]] (“[[ESLA]]”) is an arrangement where a {{gmslaprov|Lender}} grants a {{gmslaprov|Borrower}} the exclusive right to borrow from a portfolio of [[securities]]. It is documented under a separate [[ESLA]], an additional legal agreement governing the terms of the exclusivity.  
An [[exclusive securities lending agreement]] (“[[ESLA]]”) is an arrangement where a {{gmslaprov|Lender}} grants a {{gmslaprov|Borrower}} the exclusive right to borrow from a portfolio of [[securities]]. It is documented under a separate [[ESLA]], an additional legal agreement governing the terms of the exclusivity.  
It covers a pre-agreed period and may include specific programme parameters and eligibility criteria.
It covers a pre-agreed period and may include specific programme parameters and eligibility criteria.


Conceptual question: is an ESLA a form of [[equity option]]? Should you figure it into your shareholding disclosure programme? Is it subject to {{tag|EMIR}} collateralisation and all that guff?
Conceptual question: is an ESLA a form of [[equity option]]? Should you figure it into your shareholding disclosure programme? Is it subject to {{tag|EMIR}} collateralisation and all that guff?

Revision as of 18:11, 14 January 2019

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1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table
From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers

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ESLA


“It’s stock lending, for posh people.”


Docs Appendage to a stock lending agreement. Extra mark for needless verbosity. 3
Amendability Bilateral. Easyt peasy. 0
Collateral Yes, per stock lending agreement. Liquid, daily, but may be crappy assets. 3
Transferability Not without novation. But why would you? 0
Leverage Nope 0
Fright-o-meter Well, it’s used in connection with short selling but really, snoresville. 1

An exclusive securities lending agreement (“ESLA”) is an arrangement where a Lender grants a Borrower the exclusive right to borrow from a portfolio of securities. It is documented under a separate ESLA, an additional legal agreement governing the terms of the exclusivity. It covers a pre-agreed period and may include specific programme parameters and eligibility criteria.

Conceptual question: is an ESLA a form of equity option? Should you figure it into your shareholding disclosure programme? Is it subject to EMIR collateralisation and all that guff?

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