The move will enable its institutional investor clients to invest in a wider variety of short-end investment products that they would not previously had access too.
The agency lending team has partnered with its buy-side arm to provide securities lending clients with the strategy.
The move comes as international investors look to significantly increase their access to China’s $13.9 trillion bond market.
The Global Securities Lending Solutions (GSLS) Group within MUFG continues to grow as market revenues swing in Q1.
Uptick in securities finance revenues follows tough 2020 for the sector when pandemic impacts took hold.
Emerging markets are attracting increased securities lending activity from international investors as beneficial owners seek new revenue streams, and positive developments in China and Saudi Arabia are fuelling this further, according to Adnan Hussain, global head of securities lending at HSBC.
The partnership with FinTech firm Sharegain aims to open the securities lending market up to wealth managers through a new digital offering.
With a lendable asset base of more than €250 billion, AXA IM is the second European beneficial owner to join the GPFA.
Global custody banks have expanded their services in the region in order to capitalise on the opening up of Saudi Arabia’s securities markets to foreign investors.
The EU watchdog will not renew the short selling reporting changes which are due to expire on 19 March, following an extension in December last year.