It was a similarly positive story in the corporate bonds markets as EMEA and Canada led gains (+26% and +28%, respectively), likely driven by corporate bond borrow demand and liquidity positioning ahead of the September FOMC and European Central Bank (ECB) policy meetings.

High demand in short-dated sovereign bonds and corporate credit shorts added to flow delivering +22% and +9% month-over-month respectively with interest in High Yield names further driving corporate activity. Dealers also faced quarter-end balance sheet optimization pressures, spurring collateral-driven borrowing via NGT and contributing to the record highs we observed.

Overall, September demonstrated continued strength for all markets as Equities led the expansion, powered by ETF and special lending, while fixed income remained strong due to macro and collateral factors. The encouraging 29% year-over-year growth in NGT data signals greater engagement from clients and increased real world adoption of automated trading platforms like NGT and broader participation by hedge funds and asset managers, a trend which is sure to continue.

Heading into October, the picture looks strong with high utilization levels, persistent demand for hard-to-borrow names and renewed momentum from event-driven and macro volatility, in addition to earning season. We’ll be back in October to reflect on the start of Q4.