THE ONLY BUY-SIDE SOLUTION FOR FULL PRICE DISCOVERY AND PRICE TRANSPARENCY IN COLLATERALISED LENDING TRANSACTIONS, MEETING YOUR REGULATORY AND COMPLIANCE OBLIGATIONS

INDEPENDENT    AUDITABLE   TRANSPARENT

GSAVr (Gross Short Arbitrage Value regulatory) is a specialist pricing, tracking and regulatory platform.  GSAVr is a regulatory tool and specializes in the production and monitoring of financial arbitrage rates which, when applied to collateralized lending transactions provides full price discovery and full price transparency for Asset Managers, Mutual Funds, Pension Funds, Corporates  and Insurance Companies.

There is no comparable solution available today that addresses the current challenges of any form of full price discovery and full price transparency in collateralized lending transactions. This includes stock lending, bond borrowing and repo.  Accessed via a Portal with nothing to install, support or upgrade.

WE PROMOTE BEST PRACTICE WITH GSAVr AND KEEP YOU COMPLIANT

WHY DO I NEED GSAVr?

LEVERAGE THE POWER OF GSAVr

GSAVr highlights abusive trading structures such as the illegal practice of fiscal arbitrage and short abuse transactions. GSAVr computes values using algorithms stored and accessed via a Methods Library. A GSAVr Alert identifies irregularities in securities that have breached a pre-determined range known as GSAV VaR (GSAV Value at Risk). GSAVr provides KPI’s which allows you to fully investigate and report irregularities and take appropriate action. GSAVr values are completely independent, auditable and transparent.

GSAVr DELIVERS FULL PRICE DISCOVERY AND FULL PRICE TRANSPARENCY IN COLLATERALIZED LENDING TRANSACTIONS AND FULLY OPTIMIZES RETURNS

Collateralized lending transaction pricing in today’s market is opaque. This places Managers at a disadvantage when investing assets on their clients or fund holders behalf.  Under current market pricing practices, Managers do not meet their Duty of Care and Fiduciary undertaking which gives rise to a breach of their conduct duties as defined by the Financial Conduct Authority (FCA).The implication of transparent pricing for collateralized transactions applies, whether you lend or do not lend assets.

Under the Senior Managers Regime (SMR), obligations have been further refined to an extent that once a Manager is aware, they are compelled to address and resolve this issue.

Background:

Collateral Transaction activities are broadly defined using any of the following transaction classes: Bond Borrowing, Repo (Equity & Debt) Securities Lending, Buy/sell back structures including Full Return Swaps.

The Asset Management, Mutual Fund, Pension Fund, Corporate and Insurance industry  has a perception that income derived from Collateral activities is in some way considered ‘free’ income. This is an error by the industry. Fund holders, pension investors and any other investor class are fully entitled to the same price and value protection they would enjoy in any other investment activity that derived a return to them for activities executed by a Manager. A Manager cannot defer this responsibility to a third party. The onus to provide definitive price data is the Managers and the Managers responsibility alone.

Regulators, increasingly concerned about the opaque nature of the collateral markets are seeking to encourage greater price transparency.  Regulators are reluctant to legislate in a market that is defined by a self-regulatory regime. The clear preference is that the industry, which already commits to the client through the fiduciary and duty of care obligation, fulfills the hypothecation undertaking to provide the client with transparent, auditable verifiable pricing data.

When the lending market was created in the 1960’s and 1970’s, the estimated global short position at this time was around $250m. Stock or bond borrowing was an almost exclusive fails management operation, with banks and brokers settling for clients using securities (in paper form) to cover fails. Transactions had a short duration and remuneration was based on inconvenience or arrangement fee which was levied and made sense. This market process has created opaque pricing methods which in today’s market could be considered as unethical and unfair to the fund holder.

Collateralized lending has become a multi $ trillion business with direct and quantifiable economic value. However, pricing has not evolved. Your responsibility as expressed by your Fiduciary undertaking is to protect your clients and optimize returns on their assets.

The 2008 Lehman’s crisis has awoken the market to the need to understand all elements of collateralized lending transactions. A new approach to collateralized lending transaction management is required. Simply put, in reality, opaque pricing still exists and Regulators globally are increasingly concerned.

Today:

As a Fiduciary, you are required to support your actions with an audit trail which shows the market price to the client and how you have performed in the context of this market price.

GSAVr is the Solution:

GSAVr is the immediate solution to the current price data deficiency issue:

  • a regulatory tool which allows you to participate in legitimate and legal transactions
  • computes values and pricing you currently do not have and is not available anywhere else
  • places you alongside the Trader giving you full market price discovery and full price transparency
  • enables you to fully optimize returns on client assets
  • fulfill your Fiduciary, Duty of Care, Conduct Risk, Senior Managers Regime (SMR) and Self-Regulatory obligations (SRO)
  • honour Hypothecation obligations
  • exceptions management process with auditable and actionable KPI’s and MIS

Discover how GSAVr will transform your view of Collateral Transactions and enable you to meet your Fiduciary, Duty of Care, Conduct Risk and Senior Managers Regime (SMR) obligations.

GSAVr PRICING SOLUTION IMPROVES OPERATIONAL EFFICIENCY AND REDUCES COSTS

Our SaaS based GSAVr solution can be implemented instantly anywhere in the world. With no hardware or software to be installed, the GSAVr platform allows users from different groups, in different locations, and with differing requirements to access the information and exercise the control they need at all times.  GSAVr is unique and at present there is no other comparable service.

GSAVr provides a full methodologies library, accessible to you, your clients and your internal and external auditors.

GSAVr ensures you are compliant now and in anticipation of future regulatory and legislative changes including ESMA draft proposals 2016/356 suggest.

+ INDEPENDENT

LEVERAGE THE POWER OF GSAVr

GSAVr highlights abusive trading structures such as the illegal practice of fiscal arbitrage and short abuse transactions. GSAVr computes values using algorithms stored and accessed via a Methods Library. A GSAVr Alert identifies irregularities in securities that have breached a pre-determined range known as GSAV VaR (GSAV Value at Risk). GSAVr provides KPI’s which allows you to fully investigate and report irregularities and take appropriate action. GSAVr values are completely independent, auditable and transparent.

+ AUDITABLE

GSAVr DELIVERS FULL PRICE DISCOVERY AND FULL PRICE TRANSPARENCY IN COLLATERALIZED LENDING TRANSACTIONS AND FULLY OPTIMIZES RETURNS

Collateralized lending transaction pricing in today’s market is opaque. This places Managers at a disadvantage when investing assets on their clients or fund holders behalf.  Under current market pricing practices, Managers do not meet their Duty of Care and Fiduciary undertaking which gives rise to a breach of their conduct duties as defined by the Financial Conduct Authority (FCA).The implication of transparent pricing for collateralized transactions applies, whether you lend or do not lend assets.

Under the Senior Managers Regime (SMR), obligations have been further refined to an extent that once a Manager is aware, they are compelled to address and resolve this issue.

Background:

Collateral Transaction activities are broadly defined using any of the following transaction classes: Bond Borrowing, Repo (Equity & Debt) Securities Lending, Buy/sell back structures including Full Return Swaps.

The Asset Management, Mutual Fund, Pension Fund, Corporate and Insurance industry  has a perception that income derived from Collateral activities is in some way considered ‘free’ income. This is an error by the industry. Fund holders, pension investors and any other investor class are fully entitled to the same price and value protection they would enjoy in any other investment activity that derived a return to them for activities executed by a Manager. A Manager cannot defer this responsibility to a third party. The onus to provide definitive price data is the Managers and the Managers responsibility alone.

Regulators, increasingly concerned about the opaque nature of the collateral markets are seeking to encourage greater price transparency.  Regulators are reluctant to legislate in a market that is defined by a self-regulatory regime. The clear preference is that the industry, which already commits to the client through the fiduciary and duty of care obligation, fulfills the hypothecation undertaking to provide the client with transparent, auditable verifiable pricing data.

When the lending market was created in the 1960’s and 1970’s, the estimated global short position at this time was around $250m. Stock or bond borrowing was an almost exclusive fails management operation, with banks and brokers settling for clients using securities (in paper form) to cover fails. Transactions had a short duration and remuneration was based on inconvenience or arrangement fee which was levied and made sense. This market process has created opaque pricing methods which in today’s market could be considered as unethical and unfair to the fund holder.

Collateralized lending has become a multi $ trillion business with direct and quantifiable economic value. However, pricing has not evolved. Your responsibility as expressed by your Fiduciary undertaking is to protect your clients and optimize returns on their assets.

The 2008 Lehman’s crisis has awoken the market to the need to understand all elements of collateralized lending transactions. A new approach to collateralized lending transaction management is required. Simply put, in reality, opaque pricing still exists and Regulators globally are increasingly concerned.

Today:

As a Fiduciary, you are required to support your actions with an audit trail which shows the market price to the client and how you have performed in the context of this market price.

GSAVr is the Solution:

GSAVr is the immediate solution to the current price data deficiency issue:

  • a regulatory tool which allows you to participate in legitimate and legal transactions
  • computes values and pricing you currently do not have and is not available anywhere else
  • places you alongside the Trader giving you full market price discovery and full price transparency
  • enables you to fully optimize returns on client assets
  • fulfill your Fiduciary, Duty of Care, Conduct Risk, Senior Managers Regime (SMR) and Self-Regulatory obligations (SRO)
  • honour Hypothecation obligations
  • exceptions management process with auditable and actionable KPI’s and MIS

Discover how GSAVr will transform your view of Collateral Transactions and enable you to meet your Fiduciary, Duty of Care, Conduct Risk and Senior Managers Regime (SMR) obligations.

+ TRANSPARENT

GSAVr PRICING SOLUTION IMPROVES OPERATIONAL EFFICIENCY AND REDUCES COSTS

Our SaaS based GSAVr solution can be implemented instantly anywhere in the world. With no hardware or software to be installed, the GSAVr platform allows users from different groups, in different locations, and with differing requirements to access the information and exercise the control they need at all times.  GSAVr is unique and at present there is no other comparable service.

GSAVr provides a full methodologies library, accessible to you, your clients and your internal and external auditors.

GSAVr ensures you are compliant now and in anticipation of future regulatory and legislative changes including ESMA draft proposals 2016/356 suggest.

HOW CAN GSAVr BENEFIT YOU?

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REPORTING AND FULL AUDIT TRAIL

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MULTIPLE USERS WITH A SINGLE LICENSE

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INTUITIVE WORKFLOW TOOLS

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FULL LIBRARY OF PRICES AND METHODOLOGY

CONTACT US

GSAV Ltd
25 Finsbury Circle,
London,
EC2M 2EE

+44 (0) 203 890 5955
+44 (0) 203 890 6007

info@gsav.ioPrint

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LATEST BLOGS & NEWS

GSAVr challenges the collateralised market and Buy-Side Investor returns with the launch of the first solution for full price discovery and price transparency.

  • Posted by Sarah Young
  • On May 19, 2016

GSAV Ltd is proud to release GSAVr, a new and innovative solution designed specifically for the Buy-Side and in response to the...

David Hopton appointed as Non Executive Chairman to GSAV Ltd

  • Posted by Robin Cowen
  • On May 17, 2016

GSAV Ltd, the first solution for full price discovery and price transparency in collateralized lending transactions, is delighted to announce the appointment...

Thomson Reuters Annual Compliance & Risk Summit

  • Posted by Louisa Tull
  • On May 16, 2016

Tackling The Hard Questions: Speech By Mark Steward, Director Of Enforcement And Market Oversight At The FCA, Delivered At The Thomson Reuters...

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