The Europe version of Agent Lender Disclosure (ALD) was practically complete but the market had concerns about how it would be implemented. The FSA, however, had set a strict deadline for getting it done and time was running out. 

The other challenge was the production of a revised version of the Global Master Securities Lending Agreement (GMSLA). With only one issue outstanding, it seemed that finishing it off would be a formality. As it turned out, the issue was not straightforward – but after some gruelling negotiations between lenders and borrowers we reached a sensible outcome and the new standard document was published in 2010. 

Regulatory agenda 

The ISLA agenda for the first two years was quite diverse but it wasn’t long before it became dominated by regulatory developments. An early target in the reforms was short selling and my first taste of EU regulation involved working with AFME and ISDA on the SSR. 

This was a great learning experience, working alongside two much larger trade associations, meeting EU policymakers and seeing a piece of legislation move from inception to implementation. At the same time, Basel III was unfolding as the mechanism for shoring up the banking system and shortly after this the global policymaker’s attention turned towards the regulation of nonbanks and our marketplace. 

The FSB began its work on securities finance markets under the extremely unfortunate term “shadow banking”. We engaged again with David Rule, (this time wearing an FSB hat) and helped to shape its policy recommendations working closely with the RMA and ICMA. Much of what we are focused on now stems from that FSB policy work. 

Throughout my time in the job, demand for ISLA support steadily rose while at the same time member firms became less able to commit people to ISLA working groups. To help deal with this situation the ISLA board approved a series of hires. By the end of 2010 our headcount had doubled with the addition of Yvette Hall as business manager. In 2013 we added Andy Dyson as our COO and, following a year later, Claire Davis. 

After our conference this year, Sejal Amin will also be joining the team. We also expanded our team of experienced consultants. In addition to Hugh Gibson, we started working with Tina Baker, Gerard Moore and Sarah Nicholson. This expansion enabled us to materially increase our value through more advocacy, focused conferences, better communications, European roundtables and our six-monthly market reports. It was with immense sadness, however, that I said goodbye to Hugh last year after his battle with cancer. 

Moving on 

Looking ahead, I am very happy that Andy Dyson will be taking over as CEO from July. Andy has been intimately involved with our work and will ensure that it will be business as usual, and more, going forward. 

The immediate future for our market will be dominated by regulation, but rather than advocacy and raising awareness of new developments, the main focus at ISLA will be on assisting the market with implementation. 

It will also be interesting to see how the market itself evolves as a result of both regulation and market-led innovation. Some tensions are likely, perhaps a trend towards greater customisation of programmes to meet client and counterparty needs versus regulatory and cost incentives to standardise. 

While some traditional demand drivers are slowing, the likely growth in collateral markets looks set to fuel further new demand. Of course, blockchain warrants a word when thinking about the future. Well, I did mean literally one word as I have honestly no idea how this might change our market! 

We have a roundtable scheduled for Vienna on this very topic and I hope to learn more there. In my seven years at ISLA I have had the pleasure of working with many very special people from our market and, not least, my ISLA colleagues and board members. I look forward to catching up with many of you in Vienna and hopefully beyond.