State Street has reached an agreement with Data Explorers Limited – the London-based suppliers of securities lending performance measurement services – by which Data Explorers’ Performance Explorer product will be offered to State Street’s securities lending customers, providing them with the ability to evaluate lending returns against a broader peer group.
Performance Explorer is a secure, Web-based service that aims to allow customers to better understand their securities lending performance by comparing individual results against the aggregated data of a broad, customizable universe of industry peers. All customer data is kept confidential and anonymous. Each week, Data Explorers collects aggregated data on more than 64,000 securities lending transactions for approximately 55,000 securities and more than 4,000 portfolios. Recent figures compiled by the service indicated total lendable assets at almost $4.5 trillion and total on-loan balances at more than $1.3 trillion.
“The securities finance industry is becoming larger, more global and more complex every year and lenders are calling for increasingly sophisticated tools with which to monitor, assess, and manage securities lending programs,” says Edward J. O’Brien, executive vice president and head of securities finance for State Street. “State Street is committed to remaining the global industry leader in securities finance, and market leaders both anticipate and respond to customer demand. We are proud to offer this latest enhancement to our securities lending program and will continue to look for new ways to provide our customers with best-in-class products and services.”
Performance Explorer will complement State Street’s existing portfolio of proprietary securities finance services, including SL PerformanceReporter and SL PerformanceAnalyzer.
State Street was the first lending agent to launch a risk-adjusted performance measurement tool when it launched SL PerformanceAnalyzer in 1998. Data and analysis from all of these tools are used internally within Securities Finance’s account management, trading, and risk management departments to assess performance and plan programme strategies.
State Street lends securities in more than 35 markets around the world via its network of trading locations.