Canada has long been known around the globe for its conservative business practices and a business environment that plays by the rules. Our business and government stakeholders continue to work to create positive conditions for global investment into Canada. Canada is also one of the few nations holding a triple-A credit rating for sovereign debt.
Perhaps less well known is the scale and sophistication of Canada’s securities lending markets compared to many global peers. Canada is in fact the world’s second largest securities lending market – trailing only the United States and approaching the scale of the total markets of Europe or Asia.
There are likely as many specific reasons for this as there are beneficial owners and investors who choose to participate in securities lending activities, but a few factors stand out in support of Canada’s market: our triple-A credit rating; the scale and sophistication of many Canadian-based institutional investors; and, the confidence that participants take from Canada’s strong regulatory, governance and risk management practices.
To learn more, download a copy of "We’re number two," written by CIBC Mellon's Jeffrey Alexander, Vice President, Global Securities Lending. Reprinted with permission from International Securities Services.
This article is provided for general information purposes only and CIBC Mellon and its affiliates make no representations or warranties as to its accuracy or completeness, nor do any of them take any responsibility for third parties to which reference may be made. This article should not be regarded as legal, accounting, investment, financial or other professional advice nor is it intended for such use.
About CIBC Mellon
CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY Mellon) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services.
As at September 30, 2020, CIBC Mellon had more than C$2 trillion of assets under administration on behalf of banks, pension funds, investment funds, corporations, governments, insurance companies, foreign insurance trusts, foundations and global financial institutions whose clients invest in Canada. CIBC Mellon is part of the BNY Mellon network, which as at September 30, 2020 had US$38.6 trillion in assets under custody and/or administration. CIBC Mellon is a licensed user of the CIBC trade-mark and certain BNY Mellon trade-marks, is the corporate brand of CIBC Mellon Global Securities Services Company and CIBC Mellon Trust Company, and may be used as a generic term to refer to either or both companies.
For more information – including CIBC Mellon's latest knowledge leadership on issues relevant to institutional investors active in Canada – visit www.cibcmellon.com or follow us on Twitter @CIBCMellon.