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The Healthcare of Ontario Pension Plan, along with three other large pension plans and other stakeholders, is forming the Global Peer Financing Association.

The goal of the GPFA is to encourage and improve options for peer-to-peer trading activity in the securities lending and repo markets for the benefit of asset owners, according to a press release. The group’s other pension members are the California Public Employees’ Retirement System, the Ohio Public Employees Retirement System and the State of Wisconsin Investment Board, with eSecLending, Osler Hoskin & Harcourt LLP and Credit Benchmark also taking part.

Read: A look at how Canadian pension funds are using leverage

“Beneficial owners are increasingly turning to one another to engage in securities lending and repo transactions to supplement traditional banking counterparty trade opportunities,” noted the release. “GPFA brings together beneficial owner members with the goal of promoting the development of a more efficient, effective and cost-favourable marketplace for peer securities financing activities, liquidity management and collateral management.”

The group is encouraging other investor and asset management organizations to join.

“We are excited to increase participation in GPFA,” said Rob Goobie, assistant vice-president of collateral management, derivatives and fixed income at the HOOPP. “We believe it is important to promote the interest of members in making the financing market more efficient and effective. We see GPFA as a central connection point to foster collaboration and information sharing within the buy-side community.”

Read: PIAC shares recommendations with CAPSA on leverage policy work

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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