Securities Finance 2021 Year in Review
In pre-market trading the security rose as high as $260, an increase of 76% from its last close of $147.98. The company’s shares soared for a fourth straight day and are now worth $10 billion, according to figures from MarketWatch.
FEBRUARY
2021 casts short-selling into the spotlight Last year was the year that short-selling and securities lending made front pages globally, leading to increased scrutiny from regulators. JANUARY Final phase of Europe’s SFTR goes live The fourth and final phase of Europe’s stock loan and repo reporting rules went live on Monday January 11. The latest wave sees non-financial counterparties (NFCs) come into scope of the Securities Financing Transactions Regulation (SFTR), which requires firms to report details of their securities finance transactions to a trade repository. Short sellers lose more than $5 billion on GameStop GameStop shares continue to rally and are now up more than 370% in 2021, as shorts in the stock drop more than $5 billion (£3.6 billion).
Winter 2020/21
US regulator to release report into GameStop affair The US Securities and Exchange Commission (SEC) intends to release a “timely study” of the events that unfolded in the US equity market. The decision comes after highranking individuals within the country’s financial system met to discuss the recent market volatility, during which GameStop shares soared more than 1,600%.
MARCH Regulators must remain ‘impartial’ on short activism Regulators must take an “impartial” view of short activism, according to sustainable securities lending body Global PSSL. The organisation underlined that short selling supports a wellfunctioning market, while providing an opportunity for market participants to discover poor governance and environmental and social mismanagement.
APRIL Credit Suisse reshuffles board after Archegos incident Credit Suisse has announced a number of changes to the group’s executive board following the incident that unfolded just over a week ago involving family office Archegos Capital Management. Credit Suisse and Nomura said in late March they would incur significant losses after Archegos was forced into a fire sale of assets and
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defaulted on its market calls on March 26. US regulator welcomes new chair Gary Gensler US regulator the Securities and Exchange Commission (SEC) has welcomed Gary Gensler as chair of the body, after the Senate voted 53-45 in his favour on Wednesday. Gensler, who was nominated for the role by US president Joe Biden, will play a crucial role in enforcing and drafting the rules that govern Wall Street and other investors.
MAY US plans to boost transparency in short-selling The US is considering new rules to force firms to disclose more information about their short-selling activities in what could be a significant development for the world’s largest securities finance market. Gary Gensler, the new chairman of the Securities and Exchange Commission, said he has instructed staff to propose new guidelines around transparency in the stock loan market.
JUNE US regulator looks to increase short sale transparency The US Securities and Exchange Commission (SEC) has announced its plan to increase market transparency with the introduction of new regime surrounding short sale disclosure. The move comes as part of the SEC’s annual regulatory agenda and following a period of heightened volatility in the US equity market, partly due to an increase in retail market participation.
JULY Trade association calls on EU to delay CSDR The European Fund and Asset
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SECURITIES FINANCE
2021 YEAR IN REVIEW | SECURITIES FINANCE
