Securities finance veteran Mohamed Moursy to retire in 2017

Securities finance veteran Mohamed Moursy to retire in 2017

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For Mohamed Moursy, winner of Global Investor/ISF’s 2016 Lifetime Achievement Award, two things stand out about the securities finance industry he has served in for nearly thirty years.

The first is the market’s uniqueness; a characteristic illustrated by the intricate functions being performed and interconnected relationships seen throughout the business. The second and perhaps more important feature is the critical role borrowers and lenders now play in providing liquidity throughout the global financial system. 

Both attributes have been underestimated or misunderstood at various stages, according to the industry veteran – currently UK branch managing director – capital markets solutions of ABN AMRO Bank NV, as well as chief executive officer of ABN AMRO Markets (UK) Ltd.

Moursy’s experience in the securities financing industry goes back to 1988 when he joined Lehman Brothers as the firm was establishing its UK securities lending operation. “Back then the concept of global securities finance didn’t exist,” he explains. “We’ve since witnessed an evolution. The industry now contains a diverse set of organisations with bilateral arrangements across the globe.” Just as the scope of business changed over time, Moursy says perceptions have also shifted.

“Securities finance is more appreciated and understood by banks, brokers and the buy side as a key source of liquidity management.” This, he adds, has been driven by regulations, market dynamics, demand for high-quality collateral and a heightened focus on risk.

After leaving Lehman Brothers in the early nineties Moursy went on to work in various roles at Paine Webber, Fleet Securities, Mees Pierson and The Bank of New York Capital Markets. He joined ABN AMRO in 2002 and now manages capital markets solutions’ UK trading activities, which include securities financing. At that point in time the International Securities Lending Association (ISLA) was an organisation that only catered for the agent lending community. That soon began to change and in 2006 ABN AMRO added itself to ISLA’s list of members from the borrowing community and Moursy joined the board.

“Mohamed has been an active member of the board ever since, constantly pushing hard for change and for the industry to move forward,” says Mark Hutchings, ISLA’s chief operating officer. Hutchings presented Moursy with his Lifetime Achievement Award at the Global Investor/ISF dinner in London earlier this year, describing him as loyal, warm, sincere and generous.

“Over the years he has been present at many industry conferences, always vocal and never afraid to ask a question, usually the first to do so,” Hutchings adds. “He is a true legend of the industry, respected by many across the globe and has survived the test of time, multiple industry events and companies no longer around – he is an industry survivor and fondly known for his greeting, ‘Chief’.”

Moursy, currently ISLA’s treasurer, describes the trade association’s decision to open its doors to borrowers as a very important move. He also praises ISLA’s continued focus on education, negotiations with regulators and collaboration with groups such as the Risk Management Association in the US. “ISLA has become a clear, important and necessary voice for the market,” he says.

Resiliency and regulation

Another characteristic of the securities finance industry that many take for granted is resiliency, according to Moursy. “The industry continues to evolve and has learned from a number of historical mistakes,” he adds. “I’m encouraged by its reliance, ability to improve, evolve and meet challenges. It’s undoubtedly been streamlined but has also become more client-driven. I often wonder what would happen to wider capital markets if it disappeared.”

Regulation continues to be the dominant theme and will be so for the foreseeable future. The EU’s Securities Financing Transactions Regulation (SFTR) is high on the agenda and one of Moursy’s main work areas at present. The new rules, set to enter into force in 2018, will require firms to report their SFTs to an approved EU trade repository. “This will transform how the industry reports and participants deal with each other,” Moursy suggests. 

“SFTR will be a major revolution to securities finance business. The work needed to be done under STFR will dwarf Agency Lending Disclosure requirements, for example, with a documented lifetime for each transaction, unique IDs, fee changes and collateral changes. Compliance will be challenging but necessary and regulation will remain a key theme for many years to come.”

Moursy, who will be retiring at the end of the year, will be truly missed.

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