EquiLend NGT closes out record quarter for trade volumes
17 July 2024 US
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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.”
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.”
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