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Nordic lending roundtable
25 November 2013
Industry leaders discussed proposed securities lending regulation in Norway, hedge fund activity, collateral transformation transactions and trade repositories
Chair: What moves are authorities making to open up lending
in Norway? Svante Sundholm: Under current Norwegian
legislation, funds can only lend 10% of their assets to one
single counterpart and funds are also prohibited from lending
to counterparts that also use the loans themselves. Since the
principal programmes run by the Nordic banks are run out of the
entities that undertake market-making activities, many funds
are unable to lend directly to these banks. Thus, only agency
lending programmes have been possible. Finanstilsynet, the
Financial Supervisory Authority of Norway, is looking to relax
these rules and raise the 10% threshold and to take away
requirements to not lend to counterparts that also use the
loans themselves. Our counterparties believe this potential
change of legislation to be of great importance and are looking
over their internal rules to see if fund mandates can be
rewritten so they can lend. However, there...
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