The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fidelity Plans to Make Securities-Lending Rates Transparent Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, July 26, 2012

Fidelity Plans to Make Securities-Lending Rates Transparent

News summary by MFWire's editors

Fidelity [profile] is preparing to launch a pricing service that will make the securities-lending market more transparent. Kirsten Grind and Jason Zweig of the Wall Street Journal report that the firm will offer a service that lets its hedge fund clients compare lending rates from various Wall Street firms.

Grind and Zweig write that this move puts Fidelity on a "collision course with its rivals." The average rate that firms charge for securities lending is 6 basis points, but rates can vary widely across the opaque $800 billion lending market, according to the WSJ.

Fidelity's forthcoming pricing service, which has not yet been named, will be offered to the firm's hedge fund brokerage clients at no cost.

Fidelity is not the only Wall Street giant aiming to shake up the securities-lending market. The WSJ piece says that State Street [profile] is prepping a broader electronic bond-trading platform, and BlackRock [profile] has been testing a platform that will allow buyers to link directly with sellers, bypassing investment banks.

Brian Conroy, Fidelity Capital Markets president, told the WSJ that the firm is "engaging in a variety of initiatives to bring transparency to opaque markets."

Fidelity is currently testing this service among its hedge fund clients, and execs expect it to launch in the next two months.  

Edited by: HFD

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use