eSecLending is committed to comprehensive risk management across all components of our clients’ lending programs. We developed and utilize sophisticated risk analytics and reporting for our clients. Through the initial auction process, our program promotes risk management as the process solicits exclusive principal bids from a pre-approved list of borrowers and provides our clients with full transparency and price discovery as to what their portfolio can command within the marketplace. Importantly, our model allows for diversification and control of borrowing counterparts.
The exhibit that follows reflects a summary of the key risks inherent in securities lending programs and the controls we have in place to minimize risk for clients participating in our program. These risks are not unique to eSecLending and should be properly addressed and managed no matter the program structure or securities lending provider.