18 August 2017
Find out more

No short squeeze at Data Explorers

24 May 2010  |  2650 views  |  0 Source: Data Explorers

Data Explorers, the leading global provider of securities financing data and daily long and short institutional fund flow insight, today launched its Concentration Ratio analytics. This brings a new level of transparency into securities financing and helps mitigate the risk of short squeezes.

Short selling is once again at the heart regulatory debate and is central to the discussion at our Securities Financing Forum taking place in New York on Wednesday.

David Carruthers, Market Segment Director, Data Explorers commented: "The biggest risk for every short seller is a short squeeze. For the first time, our Concentration Ratio shows when a few lenders are dominating the market, increasing the probability of a short squeeze. This increased transparency allows market participants to quantify the chances that their shares will be recalled."

Short squeezes occur when there is not enough stock in the lending market to support short selling activity. A stock loan recall forces short sellers to cover their positions. This raises prices and creates additional losses for short sellers amid further covering.

Data Explorers captures more than three million daily transactions, sourced directly from contributing customers across securities financing, including investment banks, prime brokers, lending agents, beneficial owners and hedge funds. This unique content set enables Data Explorers to identify the concentration of custodians and borrowers responsible for the loans in each security, as well as the market share. When blended with a comprehensive view of fund flow, Data Explorers can help market participants mitigate the risk of short squeezes.

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comdownload the paper now

Who is commenting?

Top topics

Most viewed Most shared
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
10103 views comments | 8 tweets | 16 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
8382 views comments | 1 tweets | 3 linkedin
hands typing furiouslyCompliance: Overcome the data deficit
7824 views 0 | 1 tweets | 9 linkedin
PayPal buys Swift Financial to boost working capital bizPayPal buys Swift Financial to boost worki...
7772 views comments | 13 tweets | 7 linkedin
Uneasy sits the crown as cash use continues declineUneasy sits the crown as cash use continue...
7743 views comments | 3 tweets | 7 linkedin