EquiLend executed 2.3 million trades on its NGT trading platform in July 2022 against $ 2.2 trillion. This represents a 2% year-over-year (year-over-year) increase in trading volume.
According to Mike Norwood, director of EquiLend and owner of global trading products, volumes were down 11% from June 2022.
As global equity markets recovered slightly after a difficult first half of the year and volatility subsided, Norwood experienced an overall decline in activity.
Due to summer holidays in the Northern Hemisphere, July and August tend to be relatively slow.
However, due to the US Federal Reserve System’s rate hike by 75 basis points, coupled with the forward guidance that the hikes will eventually subside, at historic inflation levels and the ongoing conflict between Russia and Ukraine, it is likely that the remainder of the year will be unpredictable at best and should translate into solid securities lending activity.
Notable trends in July 2022 saw non-GC trading via NGT continue to reach new highs of 23% of total trades, representing 25,000 daily trades.
Activity in the healthcare sector continued to slow, with information technology becoming the third most traded sector behind industrial and consumer discretionary.