OREANDA-NEWS. December 7, 2007. The model Securities Lending Agreement, which the market participants consider to be a future standard in the Polish market, has been drafted in the process of work improving the system of short selling and lending of securities in the sector.

The draft model Securities Lending Agreement will be applicable after the entry into force of relevant amendments in regulations concerning short selling and lending of securities (drafted by a task force of the Financial Market Development Council), in particular when the provisions governing securities lending, currently contained in the Finance Minister's Regulation on the terms and procedures of lending brokerage financial instruments with the participation of investment firms and custodian banks, become null and void.

The drafted documents include:

the Polish translation of the Global Master Securities Lending Agreement under the International Securities Lenders Associations (ISLA) standard;
the Polish supplement to the Global Master Securities Lending Agreement in the Polish and the English language version.

The documents were prepared on request of the WSE by the law firm Weil, Gotshal & Manges.

The task force which drafted the documents comprised representatives of the key market institutions, including:

Brokerage houses / the Chamber of Brokerage Houses;
Banks / the Council of Custodian Banks;
the National Depository for Securities;
the Chamber of Asset and Liabilities Managers;
the Chamber of Pension Fund Companies;
the Warsaw Stock Exchange.

We hope that the documents will provide important guidelines to market participants concluding securities lending contracts.