Securities Finance

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.

The mandate expands an existing relationship and underlines an increasing demand for a broader securities finance offering in the region, according to the bank.

The new capability is the next step in State Street’s goal to encourage buy-side clients sto participate in peer-to-peer trading activities in the securities finance market.  

Pressures from COVID-19, regulations and changing geopolitical market trends, as well as low volumes, have forced Eurex to prioritise other activities.

The move could provide significant savings for banks that have faced increased regulatory costs to trade in the balance sheet-intensive repo market.