Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way,

Global Securities Finance News and Commentary.
≔ Menu
Securites Lending Times logo
Leading the Way,

Global Securities Finance News and Commentary.
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. EquiLend NGT closes out record quarter for trade volumes
Industry news

EquiLend NGT closes out record quarter for trade volumes


17 July 2024 US
Reporter: Carmella Haswell

Generic business image for news article
Image: THE_STARBOY94/stock.adobe.com
Trade volumes across the Next Generation Trading (NGT) platform reached 2,528,964 in June, equal to US$2.86 trillion, according to EquiLend.

This represents a 7 per cent decrease compared to May 2024, and a 1 per cent drop year-on-year (YoY).

Mike Norwood, head of trading solutions at EquiLend, says volatility remained subdued as core inflation cooled and markets closed out the first half with continued highs.

The June figures contributed to a “record quarter” for securities lending trade volumes across the NGT platform, which reached 7.9 million trades, generating US$8.4 trillion.

Q2 2024 was relatively active, says Noorwood, with trade volumes up 9 per cent YoY on flat equity performance.

However, the platform saw a 36 per cent rise in fixed income execution as corporates (+37 per cent) and sovereign issues (+30 per cent) continued to be in demand.

Commenting on market conditions during Q2 2024, Norwood adds: “June witnessed increasing volatility in Europe as concerns around elections in France and the UK weighed on investors, while the ECB and Swiss National Bank cut rates by 25 bps on improving economic conditions.”

During the month of June, the NGT platform observed an uptick in demand for EMEA names, with daily average trading volumes up 12 per cent for equities and 9 per cent for fixed income month-over-month (MoM).

Fixed income demand slowed in June as yields dropped and prices increased, according to EquiLend. The US and EMEA fixed income space saw reduced volumes of 10 per cent and 6 per cent, respectively.

Norwood indicates that inflation shows signs of easing, with the 2 per cent target hit in the UK and markets beginning to price in “two and maybe three” US fed rate cuts for the remainder of the year.

In conclusion, Norwood says: “The second half should be interesting as markets respond to the UK and French election results and the ongoing US presidential race.

“Eyes continue to be on inflation and the geopolitical situation, and with indices registering gains YTD so far, there could be an opportunity for increased volatility.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today
Knowledge base

Companies in this article
→ EquiLend

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Volatility

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →