- Data are available as a new subscription on Deriv1.com, Finadium’s website for data product distribution
- Finadium subscribers have access with their existing login
Finadium, a leading consultancy with expertise in the securities finance, collateral and derivatives markets, is now publishing a daily data file on US OTC equity derivatives (swaps) volumes including Total Return Swaps (TRS), Basket Swaps and Portfolio Swaps. The data are available to Finadium subscribers and as a standalone subscription on Deriv1.com.
Equity swaps are derivatives that track the movement of an individual security, ETF or basket of securities. Equity swap transactions can provide signals for cash equity price movements and reveal overall market sentiment, as well as showing large directional trades that may be unrepresented in other market data. Outstanding exposures illustrate long/short sentiment for individual securities and the market as a whole.
Equity swaps are traded between prime brokers and hedge funds, between brokerage firms and by other market participants. They may be directional trades or hedges to other exposures. Data from 2023 show that $4-5 billion in US equity swaps are traded on average days with periodic highs of $15 billion. New swaps trades on US equities can range from 30% to 100% of cash market volumes.
Equity swaps have become an important part of the global financing markets. In a recent report, Finadium estimated that prime brokers generated 55% of their equity financing income in 2022 from synthetic products including equity swaps, as compared to 45% from securities loans and margin financing.
Hedge funds, brokerages, long-only portfolio managers, family offices, retail investors, regulators and technology firms may use Finadium equity swap data to track market activity including unusual trading patterns.
Please visit Deriv1.com for more information or contact us at info@finadium.com.
Finadium subscribers can access the data on the Finadium US OTC Equity Derivatives data page.