Asian Securities Lending Forecast To Grow By 20-25% Next Year

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9th October 2010, 01:09am - Views: 1160






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MEDIA RELEASE PR41666


Asian Securities Lending Forecast to Grow By 20-25% Next Year


HONG KONG and LONDON and NEW YORK, Oct. 8  / PRNewswire-AsiaNet/ --


    

    - Over 50% of Respondents Believe Asia Will Drive Global Growth in 

Securities Lending; Hong Kong Eclipses Japan in Securities Lending Income


    Data Explorers, the leading global provider of securities financing data

and daily long and short institutional fund flow insight, released survey

findings following the Asian Securities Financing Forum that took place

yesterday in Hong Kong.


    Mark Faulkner, Founder and Director of Innovation, Data Explorers,

commented: "Our inaugural Securities Financing Forum in Hong Kong highlighted

that Asia is the driving force for global securities lending. Whilst the

regulatory environment varies across the region, the backdrop of rising

securities valuations and a thriving IPO market has created a solid

foundation for securities lending growth. It is remarkable that the smaller

Hong Kong market has overtaken Japan as the top Asian market by securities

lending revenues.


    "We are delighted to have opened our office in Hong Kong and today launch

our weekly broadcasts in Mandarin."


    The Asian Securities Financing Forum was chaired by Steve Sedgwick, CNBC,

and attracted 150 senior securities lending practitioners. Key highlights

from the panel discussions and interactive voting revealed:


    

    - Asia is one of the few growth areas in the global securities lending

    market. Data Explorers content reveals that Asia's contribution has 

    increased from 14% to 18% over the past year. Half the delegates 

    predicted Asia's contribution will increase by between 20-25% over the 

    coming year.


    - Hong Kong has recently taken over Japan in terms of securities lending

    income for the first time, according to analysis by Data Explorers. This 

    has been driven by demand to borrow outstripping supply, leading to high 

    fees being charged by custodians.


    - Respondents believed the regulatory environment will continue to evolve

    at different rates across the region, with some markets still in an 

    embryonic state. The speed and clarity of regulatory reform will impact 

    the future success of securities lending in Asia. Hong Kong's regulatory 

    body, the SFC, was praised for its non interventionist approach during 

    the crisis and dialogue with the market. This marked the SFC as a 'model' 

    regulator and helped ensure the region did not experience the same 

    declines as seen in the mature markets of Europe and the US.


    - Half the respondents did not believe there is a need for a central

    counterparty in securities lending, and are suspicious of this and do 

    not consider it to be of interest to beneficial owners.


To view this and other AsiaNet releases please visit http://www.asianetnews.net

    The results of the interactive delegate voting at the Asian Securities

Financing Forum can be accessed at http://www.dataexplorers.com/hklive.


    Data Explorers weekly securities financing broadcasts in Mandarin can be



    About Data Explorers


    Data Explorers (http://www.dataexplorers.com) is the leading global

provider of securities financing data and daily long and short institutional

fund flow insight. Based in New York, London and Hong Kong, the company's

analytics help clients identify investment opportunities and manage risk by

analyzing fund flow, stock loan availability, short interest and stock

lending volume. Established in 2002, Data Explorers unique content set of

more than nine million daily position updates is sourced directly from

contributing customers across securities financing, including investment

banks, prime brokers, lending agents, beneficial owners and hedge funds.


    Alex Brog, Alex.Brog@dataexplorers.com, +44(0)20-7264-7602  


    SOURCE: Data Explorers







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