ETFs as collateral: are they your funding friend?

Exchange-traded funds (ETFs) are not widely used as collateral in securities lending, despite aggregate assets under management reaching $3 trillion for the first time earlier this year. Indeed, there are some $516 billion in ETFs that track assets meeting widely accepted collateral rules. Yet this has not translated into their acceptance in collateral management, especially in Europe. Why?

Securities Lending Times, in association with Markit, would like to find out how ETFs are used as collateral and what can be done to make them more acceptable. The following anonymous survey will contribute to the understanding of their usage.