Stock loan exchanges gain traction

Exchange trading of stock loans promises to inject a needed dose of transparency and liquidity into the securities lending business. Hedge Funds Review reports on the latest developments.

Pile of multi-coloured 100-share stock certificates

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Securities lending exchanges are finally gaining traction in the marketplace following a decade of false starts and market resistance.

In February the securities lending exchange Quadriserv announced the latest members of its AQS marketplace. The list included some impressive names, such as hedge funds DE Shaw and Renaissance Technologies. Also on the list was BNY Mellon, the first big agent lender to commit publicly to conducting securities lending business on-exchange.

These

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