EquiLend’s NGT executed trades up 6% MoM
19 February 2025 Global
Image: Johannes/stock.adobe.com
EquiLend executed 2,935,432 trades on its Next Generation Trading (NGT) platform in January, generating US$2.95 trillion — a 6 per cent increase from December.
According to Mike Norwood, head of Trading Solutions at EquiLend, volatility returned to the global markets, with expectations of inflationary policy by the Trump administration, which faced off with strong economic metrics in the first half of the month, while DeepSeek hitting headlines put the tech sector under pressure in the second half.
Demand for US equities dropped 1 per cent month-over-month (MoM) as US indices were high on economic optimism.
EMEA saw a 13 per cent increase in trade activity as regional indices were up on the back of marginal gains in macro data, based on Purchasing Managers Index (PMI) and retail sales.
The UK was up 17 per cent as some weakness in the British pound created opportunities for selling.
Demand in APAC was near flat (-1 per cent) as Hong Kong activity dropped by 9 per cent, based on positive Chinese economic data.
Japan saw a 25 basis point central bank rate hike dampen enthusiasm in the equity market, suggests Norwood, creating a relatively flat performance, while securities lending activity was up 3 per cent MoM.
Global bonds continued to be in high demand, with EMEA fixed income up 41 per cent and APAC up 35 per cent, as bond indices experienced heightened volatility but ultimately rallied, driven by weaker-than-expected inflation and the tech sell-off in the US.
Overall, sovereign debt volumes saw increases, with 60 per cent hike in EMEA and 78 per cent jump in APAC.
Credit was in demand as well, with high yield up28 per cent MoM as spreads tightened between investment grade (up 17 per cent) and high yield.
Looking ahead, Norwood anticipates: “Politics and technology will remain in focus in the near term as the US tariff policy evolves. This should create a climate conducive to volatility and generate greater activity in the SBL market.”
According to Mike Norwood, head of Trading Solutions at EquiLend, volatility returned to the global markets, with expectations of inflationary policy by the Trump administration, which faced off with strong economic metrics in the first half of the month, while DeepSeek hitting headlines put the tech sector under pressure in the second half.
Demand for US equities dropped 1 per cent month-over-month (MoM) as US indices were high on economic optimism.
EMEA saw a 13 per cent increase in trade activity as regional indices were up on the back of marginal gains in macro data, based on Purchasing Managers Index (PMI) and retail sales.
The UK was up 17 per cent as some weakness in the British pound created opportunities for selling.
Demand in APAC was near flat (-1 per cent) as Hong Kong activity dropped by 9 per cent, based on positive Chinese economic data.
Japan saw a 25 basis point central bank rate hike dampen enthusiasm in the equity market, suggests Norwood, creating a relatively flat performance, while securities lending activity was up 3 per cent MoM.
Global bonds continued to be in high demand, with EMEA fixed income up 41 per cent and APAC up 35 per cent, as bond indices experienced heightened volatility but ultimately rallied, driven by weaker-than-expected inflation and the tech sell-off in the US.
Overall, sovereign debt volumes saw increases, with 60 per cent hike in EMEA and 78 per cent jump in APAC.
Credit was in demand as well, with high yield up28 per cent MoM as spreads tightened between investment grade (up 17 per cent) and high yield.
Looking ahead, Norwood anticipates: “Politics and technology will remain in focus in the near term as the US tariff policy evolves. This should create a climate conducive to volatility and generate greater activity in the SBL market.”
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