EquiLend’s NGT executed trades down 4% MoM
28 March 2025 Global
Image: tadamichi/stock.adobe.com
EquiLend executed 2,810,378 trades on its Next Generation Trading (NGT) platform in February, generating US$3.07 trillion — a 4 per cent decline from January.
According to Mike Norwood, head of Trading Solutions at EquiLend, volatility picked up in the back half of the month and reached levels last seen in December, resulting in a 6 per cent increase in daily average trading volumes for both equities and fixed income.
Policy decisions in the US were the primary drivers for this volatility, adds Norwood, as concerns over economic growth and the impact of new tariffs shocked investors and drove indices down.
Tech names, in particular, came under pressure from the recent US policy decisions, driving IT to rank as the second most active sector in both the US and Asia Pacific.
In APAC, markets were generally higher, with Japan as an outlier, as the Tokyo Price Index (TOPIX) was down, and the yen appreciated against the dollar.
Expectations for economic growth and corporate performance, coupled with inflation, led to a 17 per cent drop in Japanese securities borrowing and lending activity.
Market volatility drove a 2 per cent month-over-month rise in French equities, alongside an increase in shorts in both financials and consumer discretionary sectors.
Looking ahead, Norwood says: “Conditions will continue to be volatile until there is more certainty around US economic and geopolitical policy under the new administration.
“This should lead to strong demand and elevated trade volumes in the near term for market participants.”
According to Mike Norwood, head of Trading Solutions at EquiLend, volatility picked up in the back half of the month and reached levels last seen in December, resulting in a 6 per cent increase in daily average trading volumes for both equities and fixed income.
Policy decisions in the US were the primary drivers for this volatility, adds Norwood, as concerns over economic growth and the impact of new tariffs shocked investors and drove indices down.
Tech names, in particular, came under pressure from the recent US policy decisions, driving IT to rank as the second most active sector in both the US and Asia Pacific.
In APAC, markets were generally higher, with Japan as an outlier, as the Tokyo Price Index (TOPIX) was down, and the yen appreciated against the dollar.
Expectations for economic growth and corporate performance, coupled with inflation, led to a 17 per cent drop in Japanese securities borrowing and lending activity.
Market volatility drove a 2 per cent month-over-month rise in French equities, alongside an increase in shorts in both financials and consumer discretionary sectors.
Looking ahead, Norwood says: “Conditions will continue to be volatile until there is more certainty around US economic and geopolitical policy under the new administration.
“This should lead to strong demand and elevated trade volumes in the near term for market participants.”
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