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.
The results of the interactive delegate voting at the Asian Securities
Data Explorers weekly securities financing broadcasts in Mandarin can be
About Data Explorers
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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