A meetup in Madrid
17 June 2025
ISLA co-chairs Geraldine Trippner and Adnan Hussain speak to Carmella Haswell about the association鈥檚 32nd annual event in Spain and how recent events are shaping up the continent
Image: stock.adobe.com/agcreativelab
Welcoming back ISLA members and conference goers, the 32nd annual event is hosted in Madrid. Spain has become of key interest for the securities finance world following recent developments. What are your thoughts on this emerging market?
Geraldine Trippner: First, I would not consider Spain as an emerging market but as a European government debt market participant! Although Spain鈥檚 public debt has receded, at the beginning of the year, thanks to a very dynamic economy, Spain remains a solid player in the European bond market.
As such, all regulatory developments supporting Spanish capital market鈥檚 liquidity will support financing activities in the region
It is true that today, the range of Spanish clients involved in securities lending is reduced compared to other areas in Europe, which limits liquidity and opportunity.
Thanks to a strong involvement from market participants, the Spanish administration and the support of the International 兔子先生Lending Association (ISLA), regulation shall soon allow collective investment schemes (CIS) and pension funds to participate in securities lending activities and align the Spanish market with most of the others.
With recent macroeconomic and geopolitical events, including changes coming out from the Trump administration, and the move to T+1 for Europe, how are these events shaping up the continent?
Trippner: First, volatility and often very unpredictable volatility has been back since liberation day, which prevents financial actors from properly anticipating the future, which no one likes. As a consequence we have already seen a rebalancing from the US markets towards the European ones. Hedge funds have reduced their positioning in the US in favour of Europe, and big US firms have issued in Europe in the euro, to avoid FX volatility for their European activities, and to benefit from cheaper funding.
On the regulatory side, the fear of strict constraints is significantly fading in the US and the EU regulators seems intent on ensuring it does not create a framework that would impact European competitiveness too much. Lastly, regarding T+1, we have done it in the US, and now we will get ready by October 2027 to switch in Europe.
Adnan Hussain: The US transition to T+1听has听provided a wealth of experience and learning,听reinforcing the need for the market to continue to come together to manage and implement the necessary changes. For securities lending programmes in particular, T+1 will create an immediate need for streamlined processing. The case for collective adoption of automation and technology are clear, with best practice adoption of automated post-trade solutions, such as real-time trade matching.听
Driving efficiencies in the allocation and affirmation process, helping to avoid settlement delays and issues and can lead to efficiency gains that can help market participants reap the benefits of T+1.听Notwithstanding the above, we听expect more clarity听in the UK and EU听over the coming months and therefore an increase in activity听would be expected.听ISLA, along with other market representatives have been very active ensuring the securities lending market considerations are captured by the various taskforces.
What other key industry themes look to influence the ISLA conference? And which sessions are you most intrigued to hear from?
Trippner: The uncertain environment and volatility are clearly expected to be part of the discussion in Madrid. I also anticipate growing opportunities, scarce resources, and operational efficiency to remain on the top of minds, which might lead to discussion on pledge structures and the development of new markets such as Saudi Arabia for instance. Even if private credit financing is less the bread and butter of usual attendees, it is likely to be part of some discussions. I look forward to attending several sessions but the ones I will ensure not to miss are 鈥楨mbracing New Frontiers鈥� on the 18 June and 鈥楶ost Trade Alfa 鈥� A Commercial Differentiator鈥� on the 19 June.
Hussain: Digitisation and the impact on securities lending will no doubt be a topic of discussion on most agendas and will continue to be a theme in Madrid and beyond. Distributed ledger technology (DLT) and tokenisation will inevitably change the way the industry operates.听
At times, noted as听being disruptive, but as the industry has demonstrated in the past, disruption can also equal opportunity. Tokenised assets, fractional ownership, 24/7 markets are all possibilities. New digital-native securities and the tokenisation of traditionally illiquid or inaccessible assets to the lending pool is an exciting prospect. DLT adoption is expected to significantly reshape the market structure of the securities lending industry going forward, paving the way for new entrants and innovation. The above tools have also provided new market entrants (new geographies as well as new companies) an opportunity to build around modern infrastructure, propelling their听pace of growth.听
What are you most looking forward to at this year鈥檚 event?
Trippner: The June ISLA conference is one of the main European-based events for the financing community each year and a great opportunity to gather everyone together. Attending back-to-back meetings and conference sessions over a short period of time makes it easier to spot trends and see what keeps everyone awake at night. It is definitively a great place to get a pulse on the market. It is also a time to engage or re-engage with clients you do not see every week, sharing their needs. Finally, it is a very convivial moment for all market participants who look forward to it year after year.
Hussain: Given the amount and speed of change our industry is facing, coupled with geopolitical volatility, this year鈥檚 agenda has been able to distil themes such as globalisation, fragmentation, protectionism, growth, innovation, efficiencies, resilience, and adaptability, into a range of panels and sessions This has been echoed by the fact that we will have near to 650 delegates, representing over 150 firms from across the world and across every part of the value chain. So, I am particularly looking forward to connecting with undoubtedly a mix of new and familiar industry representatives.
It is also great to see a growing representation from the beneficial owner community over the last few years, due in part to our continued relationship with the Global Peer Financing Association (GPFA). This year we are expecting record numbers again 鈥� over 40 beneficial owner representatives, one of the largest cohorts ever at this conference. Alongside the main agenda, ISLA and GPFA will jointly host a closed-door session to discuss the themes and trends impacting supply and demand. Initiatives like this are hugely beneficial to the wider industry by allowing common ground to be found and networks to form.
Where do you anticipate the market will head over the next 12 months, and what trends are you expecting to see?
Trippner: As mentioned, volatility and unpredictable volatility should remain in the spotlight. Nonetheless, new market opportunities and scarce resource efficiency shall be at the centre of the discussion. The market is quite mature and looks for sustainable growth. As such, on the growth side, private asset financing, unlocking collateral either thanks to new entrants or new countries, will probably keep us busy for the rest of the year. On the efficiency front, capital relief structures and collateral optimisation will remain at the forefront of our efforts.
Hussain: Mobilisation of collateral and loan books across new markets, liquidity including the rising awareness around intraday needs, T+1 and shortened settlement cycles in general, and the omnipresent thought of the digital agenda are likely to be the prominent themes.听
听
The future securities lending market may bring near real-time settlement, automated collateral management, and a variety of new players, counterparties and assets. Solutions are developing across diverse categories like tokenisation, custody, lending, and compliance, enhancing market efficiency and accessibility, shaping the future of securities and lending markets.
Geraldine Trippner: First, I would not consider Spain as an emerging market but as a European government debt market participant! Although Spain鈥檚 public debt has receded, at the beginning of the year, thanks to a very dynamic economy, Spain remains a solid player in the European bond market.
As such, all regulatory developments supporting Spanish capital market鈥檚 liquidity will support financing activities in the region
It is true that today, the range of Spanish clients involved in securities lending is reduced compared to other areas in Europe, which limits liquidity and opportunity.
Thanks to a strong involvement from market participants, the Spanish administration and the support of the International 兔子先生Lending Association (ISLA), regulation shall soon allow collective investment schemes (CIS) and pension funds to participate in securities lending activities and align the Spanish market with most of the others.
With recent macroeconomic and geopolitical events, including changes coming out from the Trump administration, and the move to T+1 for Europe, how are these events shaping up the continent?
Trippner: First, volatility and often very unpredictable volatility has been back since liberation day, which prevents financial actors from properly anticipating the future, which no one likes. As a consequence we have already seen a rebalancing from the US markets towards the European ones. Hedge funds have reduced their positioning in the US in favour of Europe, and big US firms have issued in Europe in the euro, to avoid FX volatility for their European activities, and to benefit from cheaper funding.
On the regulatory side, the fear of strict constraints is significantly fading in the US and the EU regulators seems intent on ensuring it does not create a framework that would impact European competitiveness too much. Lastly, regarding T+1, we have done it in the US, and now we will get ready by October 2027 to switch in Europe.
Adnan Hussain: The US transition to T+1听has听provided a wealth of experience and learning,听reinforcing the need for the market to continue to come together to manage and implement the necessary changes. For securities lending programmes in particular, T+1 will create an immediate need for streamlined processing. The case for collective adoption of automation and technology are clear, with best practice adoption of automated post-trade solutions, such as real-time trade matching.听
Driving efficiencies in the allocation and affirmation process, helping to avoid settlement delays and issues and can lead to efficiency gains that can help market participants reap the benefits of T+1.听Notwithstanding the above, we听expect more clarity听in the UK and EU听over the coming months and therefore an increase in activity听would be expected.听ISLA, along with other market representatives have been very active ensuring the securities lending market considerations are captured by the various taskforces.
What other key industry themes look to influence the ISLA conference? And which sessions are you most intrigued to hear from?
Trippner: The uncertain environment and volatility are clearly expected to be part of the discussion in Madrid. I also anticipate growing opportunities, scarce resources, and operational efficiency to remain on the top of minds, which might lead to discussion on pledge structures and the development of new markets such as Saudi Arabia for instance. Even if private credit financing is less the bread and butter of usual attendees, it is likely to be part of some discussions. I look forward to attending several sessions but the ones I will ensure not to miss are 鈥楨mbracing New Frontiers鈥� on the 18 June and 鈥楶ost Trade Alfa 鈥� A Commercial Differentiator鈥� on the 19 June.
Hussain: Digitisation and the impact on securities lending will no doubt be a topic of discussion on most agendas and will continue to be a theme in Madrid and beyond. Distributed ledger technology (DLT) and tokenisation will inevitably change the way the industry operates.听
At times, noted as听being disruptive, but as the industry has demonstrated in the past, disruption can also equal opportunity. Tokenised assets, fractional ownership, 24/7 markets are all possibilities. New digital-native securities and the tokenisation of traditionally illiquid or inaccessible assets to the lending pool is an exciting prospect. DLT adoption is expected to significantly reshape the market structure of the securities lending industry going forward, paving the way for new entrants and innovation. The above tools have also provided new market entrants (new geographies as well as new companies) an opportunity to build around modern infrastructure, propelling their听pace of growth.听
What are you most looking forward to at this year鈥檚 event?
Trippner: The June ISLA conference is one of the main European-based events for the financing community each year and a great opportunity to gather everyone together. Attending back-to-back meetings and conference sessions over a short period of time makes it easier to spot trends and see what keeps everyone awake at night. It is definitively a great place to get a pulse on the market. It is also a time to engage or re-engage with clients you do not see every week, sharing their needs. Finally, it is a very convivial moment for all market participants who look forward to it year after year.
Hussain: Given the amount and speed of change our industry is facing, coupled with geopolitical volatility, this year鈥檚 agenda has been able to distil themes such as globalisation, fragmentation, protectionism, growth, innovation, efficiencies, resilience, and adaptability, into a range of panels and sessions This has been echoed by the fact that we will have near to 650 delegates, representing over 150 firms from across the world and across every part of the value chain. So, I am particularly looking forward to connecting with undoubtedly a mix of new and familiar industry representatives.
It is also great to see a growing representation from the beneficial owner community over the last few years, due in part to our continued relationship with the Global Peer Financing Association (GPFA). This year we are expecting record numbers again 鈥� over 40 beneficial owner representatives, one of the largest cohorts ever at this conference. Alongside the main agenda, ISLA and GPFA will jointly host a closed-door session to discuss the themes and trends impacting supply and demand. Initiatives like this are hugely beneficial to the wider industry by allowing common ground to be found and networks to form.
Where do you anticipate the market will head over the next 12 months, and what trends are you expecting to see?
Trippner: As mentioned, volatility and unpredictable volatility should remain in the spotlight. Nonetheless, new market opportunities and scarce resource efficiency shall be at the centre of the discussion. The market is quite mature and looks for sustainable growth. As such, on the growth side, private asset financing, unlocking collateral either thanks to new entrants or new countries, will probably keep us busy for the rest of the year. On the efficiency front, capital relief structures and collateral optimisation will remain at the forefront of our efforts.
Hussain: Mobilisation of collateral and loan books across new markets, liquidity including the rising awareness around intraday needs, T+1 and shortened settlement cycles in general, and the omnipresent thought of the digital agenda are likely to be the prominent themes.听
听
The future securities lending market may bring near real-time settlement, automated collateral management, and a variety of new players, counterparties and assets. Solutions are developing across diverse categories like tokenisation, custody, lending, and compliance, enhancing market efficiency and accessibility, shaping the future of securities and lending markets.
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