Securities Lending

[clairep01]

My client has recently ended their securities lending arrangement with their custodian. Should they expect their custody fees to be effected? :confused:

[Simon Thomas]

Not unless the fees are bundled - in which case you need to push back - you are likely to fee a drive to increase FX spreads

[clairep01]

The fees are not currently bundled but as a result of stopping the sec lending service, the custodian has provided a new fee schedule where all areas of custody have had fees increased. What do you recommend I do?

[Simon Thomas]

Recommend that the client goes to a competitive tender

[lbrown]

Is this a fair representation of custodian's behaviour across the board in reaction to heavily reduced stock lending activity?
It highlights how much money they were making out of it in the past.