Page 6 - ISLA_SLReport_Aug2020_double

Market Volatility (VIX)
Highest level since 2007/08

85 @ Sovereign
Mid-March Wealth Funds Global Equities Held in
Reported percentage of 13% European Tri-party
total lendable & on-loan 34% Down from 45%. Falling equity
Securities On-Loan 15% & 29% balances respectively markets led to greater use of
Marginal decrease Corporate Bonds Held government bond collateral

Brexit in European Tri-party
€2.2Tn Divergence already being seen Up from 10%
at a regulatory level in relation to
CSDR & SRD II Asian Government Bonds
€20Tn Held in European Tri-party
COVID-19 Down from 35%
Delays to implementation of SFTR.
Lendable Assets 25%
Unchanged Regulatory & policy responses
being seen through the
sustainable finance agenda. Collateral
Revenues
$3.8Bn Reported revenues down 14%
compared to the same period in
Global Trends Highlights as at June 2020
2019. Absence of seasonal balances
in Europe as a result of cancellation
of corporate dividends Market

Equity Markets

Lendable Assets
35% Equities in securities lending

Bond Markets
Utilisation programmes fall by 5%
As clients sold positions in cash markets €987Bn
& demand increased in mid-March, €1.1Bn €14Tn
proportion of government bonds on
loan increased over the period Securities On-Loan
Securities Despite volatility driving the first 6 months
On-Loan of 2020, equity on-loan balances closed

6 6 Unchanged the half-year virtually unchanged 7