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Securities Lending Market Report | June 2021

>>> The vast majority of SFTR reporting is single sided >>> CCP clearing is not utilised within securities lending

When we compare the percentage value of reported SLEB This perhaps shows that most of the liquidity within One element of the TR public data that is overwhelmingly 2021. When compared with repo we see around 30-
transactions which are single-sided, (transactions where European securities lending markets are coming from clear is the lack of CCP usage within securities lending 36% of reported loan volume was cleared using a CCP.
only one party is captured by the relevant SFTR regime) and outside of Europe. Arguably the large dip at the end of the markets, CCP cleared transactions made up less than 0.1% The absence of CCP based securities lending products in
transactions which are dual-sided (both parties captured Brexit transition period for DTCC EU (around 3.4% in dual of all securities lending volume in the first 6 months of Europe means this is unlikely to change.
under one SFTR regime, and therefore the transaction sided reporting) gives us some indication about the level of
is reconcilable), we see that only 8-12% of DTCC EU liquidity which comes from UK markets into the EU.
transactions and 6-7% of DTCC UK transactions are dual This raises important question about market liquidity
sided.
and financial stability given the EU’s apparent reliance on
liquidity from the rest of the world.

Fig 12 - DTCC, REGIS-TR & KDPW Public Data Fig 13 - DTCC, REGIS-TR & KDPW Public Data

Percentage of Loan Value Reported As Dual Sided Percentage of Loan Value Reported as Cleared (DTCC UK, DTCC EU, Regis-TR, KDPW)

14% 40% 0.12%
12% 35% 0.10%
10% 30%
8% 25% 0.08%
6% Percentage of REPO loan value reported as cleared 20% 0.06% Percentage of SLEB loan value reported as cleared
4% 15% 0.04%
2% 10%
0 5% 0.02%
Oct 10 Nov 20 Dec 20 Jan 21 Feb 21 Mar 2021 Apr 2021 May 2021 Jun 2021 0 0.00%

DTCC EU, Regis-TR, KDPW DTCC UK Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021
REPO SLEB