EquiLend’s NGT grows 4% YoY in monthly review 19 September 20224US Reporter: Daniel Tison
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EquiLend’s Next Generation Trading (NGT) platform reached 2.8 million trades executed, totalling US$2.9 trillion in notional in August, up 1 per cent from July and 4 per cent year on year (YoY).
Mike Norwood, head of trading solutions at EquiLend, comments: “Equity market sell-offs were the theme at the beginning of August, as major indices continued to pull back before rebounding to close out the month in the black.
“Disappointing US economic data, combined with a Bank of Japan interest rate hike, triggered recession fears and spiked volatility to multi-year highs, driving robust demand in the securities lending market.”
Equity demand increased 2 per cent month over month (MoM) driven by a 4 per cent rise in US activity, according to the firm.
“EMEA was flat while Canada and APAC markets saw modest softening,” says Norwood. “US volumes resulted from the volatility and sell-off related to weaker-than-expected jobs reports, as well as July manufacturing figures.”
Fixed income volumes were down 2 per cent MoM in aggregate, as yields were down and prices up. Eurozone demand softened as well, down 18 per cent in August.
Norwood adds: “The market is looking at a 25bps rate cut on a downturn in economic measures on weak purchasing managers' index (PMI) and following the Bank of England’s cut on August 1.”
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