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Securities Lending Market Report | March 2022

Fig 7 - DataLend

Equities On-Loan by Region (2020 v 2021)

0.7

0.6
On-Loan Balance (Trillions €) 0.4
0.5

0.3

0.2

0.1

0
North America APAC Europe Other

On-Loan Value December 2020 On-Loan Value December 2021
(Lender to Broker) (Lender to Broker)
>>> Asia Pacific

Corporate activity notably moved away from capital/cash There is plenty to keep an eye on here, as the increase in The lifting of short-selling bans in Korea and Malaysia and Revenues rose significantly year-over-year within APAC,
raisings in the first half to capital/cash deployment in the allocation from foreign investment has provided options changes to short-selling rules in Thailand in the second with the MSCO APAC ex Japan index providing nearly 28%
second half of the year. Rights in H1 moved into tenders for several market regulators and exchanges looking at half of 2021, brought a mixed response from investors. higher returns from securities lending in 2021, compared
and mergers in H2. enhancing securities lending. Saudi Arabia, Dubai, Abu Meanwhile, new lending rules introduced in China for to 2020.
Dhabi, Kuwait, Qatar and Oman were all active on this Qualified Foreign Institutional Investors (QFII) enabled
This was a reflection of growing business confidence in the front, and increased participation within these markets is short selling/lending to commence, although supply The Taiwanese market was another big driver of increased
economic recovery and is expected to continue into 2022. anticipated for lenders and borrowers alike in 2022 and decreased significantly in some historically liquid names, revenues, as the index reached record highs. These higher
In H2 2021, we also saw several significant opportunities beyond. in part to US-China tensions. All in all, there was a lot of valuations led to increased interest and, with supply
related to spin-offs, with Vivendi and Naspers being two activity in local Asian markets. remaining tight, lendable returns continued to increase
noteworthy examples. throughout the year.
Revenues here were a tale of two halves. Returns from the
Meanwhile, Middle Eastern markets have continued first half of the year were driven significantly by Malaysia
to see growth as they are added to global and regional and the rubber trade more broadly, which attracted
indices. HSBC was the first to facilitate a securities lending significant interest. As the first half drew to a close, the
transaction in Saudi Arabia, and we are also exploring ways Korean short-selling ban was lifted. As a result, lending
to introduce securities financing in other emerging markets.
returns were enhanced.