SunGard has launched a data service that aims to help executives anticipate if short sellers are targeting their share price.
Developed by SunGard Astec Analytics, Short Insights will keep clients informed of lending activity of shares, usually seen as a proxy for short selling.
Tim Smith, senior vice president at SunGards Astec Analytics, said: The SEC is evaluating reinstatement of the uptick rule because of the concern that selected stocks could be targeted for bear raids without adequate price checks in place. This same concern is often expressed in boardrooms where short sales are regarded as a threat to share price stability. With Short Insights from SunGard, corporate executives now have a tool at their disposal to help monitor and evaluate the performance of their company relative to that of their competitors as seen through the window of the securities lending industry.
The offering is the second major product developed by the Astec Analytics team since its purchase by SunGard in 2007. Shortside.com was launched in 2008 aiming to provide short selling market color (or securities lending analytics) for the investment management community.
According to Smith: When SunGard purchased Astec Analytics in 2007 it was part of a strategic decision to have a qualitative product that would be an overlay to, and integrate with, SunGards current offerings for securities lending and repo monitoring and administration.
Unlike Shortside.com, Short Insights is directed towards investor relations. Smith added: SunGards Short Insights provides corporate executives with a multi-dimensional view of the securities lending activity in their stock each day. Shares-on-loan data as reported on U.S. and some other exchanges are often delivered on a delayed basis up to two weeks in arrears. We provide data next day and have enhanced shares-on-loan data with cost-to-borrow data, neither of which has previously been available to the general public.