SECURITIES LENDING & REPO MARKETS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2008

OVERVIEW OF THE SECURITIES FINANCING MARKETS

Securities lending & repo market size and features in geographical regions

1.4

It should be noted that definitive and internationally comparable statistics on the types of transactions traded (securities loans, repos, other) and the associated amounts are not readily available, all the more as securities lending and repo transactions are typically OTC trades, often conducted outside a central electronic trading system. However, estimations of global securities finance market size can be made based on peri- odic market participant surveys such as the European repo market survey conducted every six months since 2001 by the International Capital Market Association (ICMA) among 58 major financial institutions (central bank excluded) and the quarterly aggregate data survey conducted among 16 major lending banks since 1999 by the Securities Lending Commit- tee of The Risk Management Association (RMA). The full size of the market is obviously somewhat larger than the samples surveyed. Thus the ICMA and RMA figures displayed hereafter should be considered only for information.

Analysis of RMA data (global lending market)

1.4.1

According to the latest RMA survey, the aggregate total lendable assets worldwide reached USDMM 8,882,551 at the end of Q2 2010 against a total on loan of USDMM 1,151,578, that is to say 13% of lendable assets. Figure 11 displays the split between bonds and equities, whereas figure 12 shows the breakdown of total on loan by geographical region.

Figure 11: Aggregate total of lendable assets and total on loan worldwide (Q2 2010)

Lendable assets (USDMM)

Total on loan (USDMM)

Total on loan (%)

Total equities Total bonds

5,445,088 3,437,462 8,882,551

485,647 665,930

9%

19% 13%

Totals

1,151,578

Source: RMA quaterly aggregate data survey, Q2 2010

Figure 12: Total on loan, breakdown by geographical region in USDMM and in % (Q2 2010)

OTHER 496,026

ASIA PACIFIC 658,613

6%

7%

EUROPE 1,552,842

17%

NORTH AMERICA 6,175,070

70%

Source: RMA quaterly aggregate data survey, Q2 2010

page 24 | Securities Lending & Repo markets