Short Meets Long: When Securities Lending Data Illuminates Market Sentiment

While the securities finance industry has become considerably more transparent than it was a decade ago with the advent of specialized data providers such as DataLend, the critical metrics that market participants monitor on a daily basis are still relatively unknown outside the institutional marketplace.

How Special Are Specials in Securities Lending?

Hard-to-borrow securities, also known as specials, make up a considerable percentage of the securities lending market’s revenue, but the 2017 global equity market rally has had a negative impact on the specials market thus also reducing lending revenue. DataLend investigated how the reduction of specials in the market has impacted global revenues over the past 18 months.