Minutes of the Securities Lending Committee meeting – March 2026

Contents

Location: Bank of England, 20 Moorgate, London EC2R 6DA

Date: 11 March 2026

Item 1: Introductory remarks

The Chair opened the meeting and welcomed the members and observers.

Item 2: Diversity, equity and inclusion

The Committee discussed ongoing efforts to attract and develop new talent in the securities finance industry. Recent industry-led events have helped reach a wider audience but members noted hiring strategies which are not always inclusive of a broader range of skills.

Item 3: T+1 update

There is broad industry consensus that firms are on track for transition in October 2027. Although members expressed some concern around funding mismatches, they noted progress made on the corporate action workstream and CSDs remain engaged. The Committee discussed the complexities of collateral constraints and market close behaviour, noting that pre-emptive processes are lender-dependent but can reduce problems.

Item 4: Market update - Committee

Following recent global tensions, the Committee noted some changing behaviour from market participants but the market remained broadly stable. Members noted increased focus on regulatory requirements including capital efficiency and risk-weighted asset optimisation, which influences collateral supply and participation. Demand has been resilient through recent turbulence pointing to market maturity.

Item 5: Digital assets and future infrastructure

Members discussed regulatory alignment and the EU Market Integration and Supervision Package (MISP), which will provide deeper capital market integration across the EU. The legislation will modernise settlement finality, collateral rules for tokenised assets and provide legal certainty for Distributed Ledger Technology (DLT). Members noted cautious uptake from beneficial owners who have queried insolvency protection, legal certainty around collateral ownership in a default scenario and double-token issuance. Banks continue to explore use-cases in tokenised assets for intraday liquidity, instant settlement, margin call coverage and collateral mobility.

The Committee also discussed crypto asset regulation, developments in central security depositories and central counterparties.

Item 6: SLC Tax and Regs update

The SLC Tax and Regulations sub-committee provided an update to the group on tax and regulatory changes including mitigating the impact of T+1 on taxation of market claims and harmonisation across central security depositories. The Group provided further updates on regulatory changes in European jurisdictions and progression towards harmonisation across tax authorities.

Item 7: AOB

State Street Global Markets

Davina Stickland (Tax & Regulatory sub-committee)

Caroline Dawson (Tax & Regulatory sub-committee)

Shikha Kalra (Tax & Regulatory sub-committee)

Adrian Dale (Tax & Regulatory sub-committee)

Christy Stagemeyer (Tax & Regulatory sub-committee)