Minutes of the Securities Lending Committee meeting – March 2026
The Bank of England’s Securities Lending Committee reviewed industry progress, hiring challenges, regulatory alignment, and tokenised asset adoption in its March 2026 meeting.
The Chair opened the meeting, highlighting efforts to attract and develop new talent in the securities finance industry. Members noted that recent industry-led events have expanded outreach but hiring strategies often lack inclusivity for diverse skill sets. There is broad consensus that firms are on track for a transition in October 2027, though some funding mismatches remain a concern.
The Committee discussed collateral constraints and market close behaviour, emphasising that pre-emptive processes vary by lender and can mitigate issues. Despite recent global tensions, market participants’ behaviour has shifted slightly, but overall stability has been maintained throughout the period.
Members highlighted increased regulatory focus on capital efficiency and risk-weighted asset optimisation, which impacts collateral supply and market participation. Demand has remained resilient despite turbulence, indicating market maturity and stability in the sector.
The Committee examined regulatory alignment, particularly the EU Market Integration and Supervision Package, which aims to modernise settlement finality and collateral rules for tokenised assets. Concerns were raised about cautious uptake from beneficial owners regarding insolvency protection and legal certainty in default scenarios.