Data Explorers Launches Stock Lending Index
Monday, October 06, 2008 2:12 PM
(Source: PRNewswire)trackingLONDON and NEW YORK, October 6 /PRNewswire/ -- Data Explorers, the leading provider of benchmarking information to the Securities Financing Industry and short-side intelligence to the Investment Management community, today launched The Data Explorers Stock Lending Index ("DESLI"). DESLI is available at http://www.dataexplorers.com/desli

DESLI shows the variations in the amounts of stock borrowed and amounts available to borrow in all regions and sectors around the world.

The Data Explorers index is now the leading benchmark indicator for stock lending for all regions and sectors globally. It captures unique information from the major custodians and prime brokers around the world - data that is unavailable from any other source, including regulatory services.

DESLI shows that the inventory of available loan stock is now in general being more intensely utilized. This implies on one hand, increased lending revenue from more stock out on loan, and also, the fact that stock borrowing and short selling remain very active despite various restrictions and outright bans around the world.

"It will be very interesting to see how the Data Explorers Stock Lending Index behaves over the coming days with the SEC short selling regulations hitting the disclosure date next week. The DESLI index shows an increase in stock lending activity globally with a substantial spike in Asia since the recent legislations on short selling." said Jonathan Morris, COO of Data Explorers.

Over the past month, DESLI shows that the volume of inventory has fallen by around 9%, while the volume of loans has increased by around 18%. Within these broad changes there are some noticeable trends. The volume of loans or utilisation has risen in the US, Asia, and Europe; but it has fallen dramatically in the UK. Also, while the volume of loan inventory has dropped around the world, we have seen a more dramatic decrease in the UK.

Following the ban on short selling of financial stocks in the US, the volume of loans in the affected sectors dropped by more than 20%; as did the volume of inventory. The drop in inventory reflects sales of stock by beneficial owners as well as specific decisions to stop lending these stocks.

Around the world, borrowing has risen in sectors which are unaffected by recent restrictions, but especially in sectors such as retail. Despite a general deleveraging across the hedge fund industry, borrowing has risen in all regions except the UK.

About Data Explorers

Data Explorers (http://www.dataexplorers.com/) provides its global client base with quantitative measurement of securities lending, performance and risk. The company is based in New York and London and collects data from market participants to create the world's most comprehensive and up-to-date information and research on stock lending and short interest.

Contacts: Data Explorers, Jessica Johnson, Head of Editorial and PR, jessica.johnson@dataexplorers.com , +44(0)207-264-7615. http://www.dataexplorers.com/

Data Explorers Limited

CONTACT: Contacts: Data Explorers, Jessica Johnson, Head of Editorialand PR, jessica.johnson@dataexplorers.com , +44(0)207-264-7615.


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