In his June 21, 2023, testimony before congress, Federal Reserve Chair Jerome Powell referred to the central bank’s view of bank-run mechanics as “outdated.” His comments, which sought to address the events leading up to Silicon Valley Bank’s collapse, allude to the fact that today, the genesis of financial panic is more likely to come from message boards than board rooms.
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Kickstarting in mid-March 2023, NGT, EquiLend’s renowned trading platform, launched an exciting new workflow for clients – Competitive Bid. In an effort to drive greater automation in the specials market, Competitive Bid allows both Lenders and Borrowers to indicate hard-to-borrow flags when they initiate trades.
In a volatile macroeconomic environment, the fixed income market continued its robust securities lending performance in Q1 2023, generating $666 million in revenue, up 25% YoY. The period continued to be characterized by rising interest rates and inflation, forcing fixed income yields up and presenting an opportunity for directional trading.
The Data and Analytics division of EquiLend has observed many revenue-impacting corporate events in recent years; Naspers in 2021 and 3M last year, to name a few.
The collapse of Silicon Valley Bank sent shockwaves throughout both the U.S. and global financial sector. While the 2023 banking crisis will likely not be a watershed of the same magnitude as the collapses of 2008, it was a true test of the system and unsurprisingly had a significant impact on the securities lending market.