UNC Kenan-Flagler Business School


Business executives and academics share insights on securities lending and short selling


Short selling and securities lending were the focus of discussion by approximately 90 business executives, regulators and academics at the second annual Academic Forum for Securities Lending Research co-hosted by the Risk Management Association (RMA) and the University of North Carolina’s Kenan-Flagler Business School at Credit Suisse in New York April 30, 2010.

Objectives were to:

  • introduce early-stage research to academics and practitioners
  • provide market-based perspectives to leading academics
  • promote interaction between academics and practitioners about potential future research topics

“The forum enabled academics and practitioners to engage in excellent discussions, a rare opportunity,” said Adam V. Reed, associate professor of finance and Julian Price Scholar at UNC Kenan-Flagler, served the academic co-chair of the event Reed. “We heard the latest in high quality research. We continue to learn much about the practice of short selling and securities lending.”

“Working with the academics allows RMA to further educate both the academic community and the regulatory community on the process of securities lending and how it relates to short selling, said Christopher R. Kunkle, director of securities lending and market risk for the RMA. “This forum is the preeminent one of its type involving the business side and those researching securities lending/short selling to have open communications around the current issues in the business.”

Panel sessions focused on:

  • Regulatory Uncertainty and Market Liquidity: The 2008 Short Sale Ban's Impact on Equity Option Markets
  • Shackling Short Sellers: The 2008 Short Selling Ban
  • The Effects of Stock Lending on Security Prices: An Experiment
  • Prohibitions Versus Constraints: The 2008 Short Sales Regulations

Business executives from most every securities lending firm participated, including BNY Mellon, Brown Brothers, Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, Northern Trust, State Street and Wachovia. Additionally, RMA’s executive committee on securities lending and several participants from SIFMA’s SLD executive committee joined the forum.

Reed, Jennifer, Conrad, Chotibhak Jotikasthira, Matthew C. Ringgenberg and Edward Van Wesep, members of the UNC Kenan-Flagler finance faculty, attended along with professors from Columbia Business School, Dartmouth College’s Tuck School of Business, Harvard Business School, University of Washington Business School, the University of Notre Dame’s Mendoza College of Business, Ohio State University’s Fisher College of Business and the University of Mississippi.

For more information about the forum, contact Reed at adam_reed@unc.edu and Kunkle at ckunkle@rmahq.org or visit http://public.kenan-flagler.unc.edu/events/AFSL/agenda.htmland http://www.rmahq.org/RMA/SecuritiesLending/SLAcademicForum/.


Media contacts: RMA: Kathie Beans, kbeans@rmahq.org, 215-446-4095 UNC Kenan-Flagler: Allison Adams, aadams@unc.edu, 919-962-7235