US reforms forcing change to sec-lending models

Securities financing traders say that myriad rule changes are causing them to be more selective in choosing lenders and borrowers, with rising compliance costs forcing them to focus on high-margin securities. Regulations – ranging from single-counterparty concentration limits under the US Dodd-Frank rules to US proposals targeting money-market funds – have hit securities lending to such an extent that it's no longer profitable to run a low-margin, high-volume business. Attendant…