Financing Solutions

The securities lending and the repurchase/reverse repurchase (“repo”) businesses have evolved into major global markets.  Securities lending is essential for the shorting of securities, both in the fixed income and equity markets. Repos are a critical funding vehicle for firms to finance its firm positions in all fixed income products. The events of the global financial crisis of 2007-2008 and its aftermath, have highlighted the importance of strong collateral management and transparency in these markets.

ICBCFS offers highly customized financing solutions to support the growing demands being placed on market participants such as pension funds, endowments, asset managers, insurance companies, investment banks, broker-dealers and prime brokers.  These solutions take into full account the complex nature of securities lending and repo transactions from an operational, taxation, risk management, reporting, cross-border and valuation standpoint.  A key feature of ICBCFS’s securities lending and repo capabilities is that the firm does not engage in proprietary trading.

Securities Lending

ICBCFS enables lenders, typically institutions with significant portfolios of long-term securities, to enhance the yield on their positions and minimize risk on a real-time, mark-to-market basis. Our experienced team, with its deep market understanding, risk management capabilities, trading skills, and access to leading edge technology, works with clients to facilitate:

• Creation of customized securities lending programs to meet economic goals and strategic objectives, and risk parameters
• Seamless covering of  “hard-to-borrow” shorts
• Risk-based cross-margining on positions, in certain markets, which can reduce the deposit to be maintained, thus freeing up capital
• Provide for a recall of securities anytime, while retaining income
• Collateral reinvestment
• Substitution of collateral, if agreed upon, at execution

Repo Repurchase Agreements

ICBCFS provides clients with funding through repo agreements. Our highly reliable and flexible proprietary systems insure that:

• All transactions are executed by ICBCFS as principal
• If a clearing account automatically financing positions on settlement date
• For approved accounts we offer term financing
• Provide tri-party financing for cash investors
• Provide risk-based cross-margining on positions, in certain markets, which can reduce the deposit to be maintained, thus freeing up capital.
• Clients receive intra-day market commentary for certain markets and have ready immediate access to appropriate financing professionals

ICBCFS places great emphasis on mitigating settlement risk for both securities lending and repo through its global network of sub-custodians. We also seek to reduce operational risk exposure by conducting conservative mark-to-market valuations and highly customizable and timely reporting to clients. Customization, global reach, financial security, independence and high-touch servicing are the defining qualities of ICBCFS’s capabilities.