Securities Finance Times organized a virtual panel of experts—including Juhi Chikhlia, Associate, Securities Finance—to look at the Asia–Pacific (APAC) securities lending markets and the potential impacts artificial intelligence (AI) and distributed ledger technology will have in the securities finance space. Here are some highlights of the discussion:
- Despite year-over-year revenue decreases of 15% and 24% in North America and EMEA equity markets, respectively, revenue generated in the APAC equities market remained relatively flat.
- Taiwan is seen as a standout market from a revenue generation perspective, where demand continues to exceed available supply, largely driven by directional strategies associated with the technology sector (e.g. semiconductors, AI and chipmaking).
- In second place is Japan, where demand has been driven by seasonal activity and higher volumes as investors reallocate investment away from China.
- The Philippines and Indonesia are seen the next two emerging lending markets, following the crystallization of onshore hedging solutions for investors within their capital market structures.
- APAC markets are less harmonized compared to others—where its many markets differ in operating structures and prefunding requirements—so adjustments and risks will be heightened to address the nuances in the region.
“It continues to be a region that can provide stable lending revenue against a backdrop of geopolitical uncertainty.”
Juhi Chikhlia
Associate, Securities Finance
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