In both the December 4, 2002 auction of $48 billion in domestic equities and $7 billion in international equities, eSecLending used its Web-based platform, eSecAuction.
For the domestic equity auction, the financial institutions submitting winning bids included Credit Suisse First Boston (CSFB), Deutsche Bank Securities Inc. and Lehman Brothers Inc., according to an announcement. CalPERS also awarded assets to Metropolitan West Securities on an agency basis.
In the December 11 international equity auction, the winners included Credit Suisse First Boston (CSFB), Deutsche Bank Securities Inc., JPMorgan and Lehman Brothers Inc, the announcement said.
CalPERS also awarded assets to Boston Global Advisors on an agency basis. Exclusive borrowing rights and agency awards expire after 12-month terms, after which rights to the securities will be reauctioned.
Securities lending involves institutional investors, including pension funds and mutual funds, lending securities to earn incremental income on their holdings. The size of the securities lending market is estimated between $1.5 trillion and $2 trillion worldwide.