Emerging markets 'key to growth' 30 June 2011Lisbon Reporter: Ben Wilkie
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According to the ISLA emerging markets panel on Wednesday a large gap has evolved between supply and demand in many emerging markets – the largest gap being in Russia and Israel.
25 per cent of lenders and borrowers in the audience believe there will be a 25 per cent increase in emerging market securities lending practices in the next three years
Borrowers believe Brazil is the biggest BRIC country with potential growth – and lenders agreed
Ignoring Russia ‘could be a mistake’ - $5 billion traded on the cash market and vast activity going on in government planning and IPOs
Taiwan holds a strong potential for agent lenders to enter the securities lending space, with India geared towards the retail area but looking to make offshore borrowers active. There is also a focus for offshore prime brokers to get into this market.
The biggest challenge is China – a guarded place where the securities lending industry needs to encourage stock lending. The industry needs to promote how it encourages liquidity. Pakistan, Mongolia and Vietnam are also on the securities lending radar.
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