RMA: Brazil sec lending is flourishing

The Brazilian securities lending market is growing, according to a panel at the Risk Management Association's (RMA) annual securities lending conference. The panellists discussed the state of securities lending in the main regional markets of Latin America. Tony Kim, executive director at Morgan Stanley, outlined the market capitalisation and average traded volume of the regional markets, stating that Brazil is way ahead of other markets and is similar in size and activity to Taiwan and Korea. Brazil's market capitalisation of $1,000bn and average daily traded volume was $4bn. He noted that the securities lending market in Brazil is growing and is up around 30% over the past four years. Carey Chamberlain, head of equity finance, HSBC Securities, added that Brazil is the most important market from a securities lending point of view. He added that the new Brazil Securities Lending Association (Brsla) will lead to more liquidity and aims to achieve a free flowing equity market for clients. "The market is becoming more liquid and attracting more investors."