Insight
November 2025
Mike Norwood
Monthly Securities Finance Market Review: October 2025
EquiLend’s Head of Trading Solutions, Mike Norwood, shares his monthly market review for securities finance, highlighting October trends seen across NGT. The following data has been measured and derived from EquiLend NGT.
Trading by Sector for October: The Global Picture
October 2025 saw securities lending activity on EquiLend’s NGT platform rise 6% month-over-month to 3.75 million trades (improving on the monthly high set in September) versus $4.11 trillion, led by an 8% increase in equity volumes and a 3% uptick in fixed income month-over-month.
Equity lending growth was driven by heightened short demand around Q3 earnings, increased ETF hedging activity and specials in select U.S. and APAC names. Fixed income activity was steadier as sovereign yields stabilized and collateral upgrade trades continued, particularly in EMEA.
Overall, October reflected a supportive macro backdrop — moderating inflation, steady policy rates and modest equity volatility — favoring equity-driven borrow demand while maintaining a solid base of bond lending activity.
Equities: Volatility Fuels Short Demand
Equity demand was driven by market volatility and short selling activity. Global equity performance was mixed: early in the month indices pulled back following Q3 earnings and ongoing U.S.-China trade tensions.
However, progress late in the month — coupled with improvements on inflation lead to a 25bps interest rate cut in the U.S. — drove markets higher. This volatility fueled short-term borrow demand in tech and consumer discretionary names, as well as European cyclicals and APAC tech. ETFs also remained an area of focus.
Fixed Income: Stability and Collateral Demand
Fixed income remained relatively stable, up 3% month-over-month. Yields declined across U.S. treasuries and European sovereign bonds as markets priced in fewer central bank rate changes in 2026. Demand for collateral drove activity for sovereign debt and investment grade corporates.
Market Outlook: Steady Rates, Year-End Positioning Ahead
Looking forward, interest rates are expected to remain stable into early 2026, with firms now turning their focus to year-end balance sheet positioning.
Market participants will be closely watching central bank messaging and broader market performance. If volatility remains elevated, demand for securities borrowing and lending (SBL) should remain strong through the end of the year.
Within global equities, NGT’s most in-demand sectors were:
Stay tuned for the latest securities finance trends, trading analysis and commentary with EquiLend’s Monthly Trading Commentary across 2025.
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