Finadium Publishes New Report On Securities Lending Exchanges In 2009

Finadium has released a new report on securities lending exchanges. Like any disruptive business model, electronic securities lending marketplaces ("exchanges") seek to alter the landscape of their industry. From moving traders towards an electronic screen to linking loan activity with

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Finadium has released a new report on securities lending exchanges. Like any disruptive business model, electronic securities lending marketplaces (“exchanges”) seek to alter the landscape of their industry. From moving traders towards an electronic screen to linking loan activity with automated post-trades processing, exchanges are quietly looking to capture a small amount of market share while winning over major lenders, borrowers and intermediaries. 2009 will be a testing year, with exchange operators launching and revising their business models and marketing strategies.

Highlights of the report include:

– While the recent crisis did not spur the launch of exchanges, it did serve to focus the conversation on risk in the lending process. Exchanges are capitalizing on this trend by advertising their relationships with central credit counterparties.

– Securities lending exchanges have the potential to create a two-tiered prime brokerage market, with large funds receiving loans directly from their prime brokers and smaller funds going to exchanges for access.

– We profile four marketplace operators as well as two potential contenders who have not yet announced their plans. These markets are currently experimenting with a variety of trading platforms and business models.

To read the full report please visit www.finadium.com

D.C.

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