Are hedge funds worth your money? Hedge funds have developed from investment funds that were designed to lower the risk of your portfolio to a multitude of different investment styles with different goals. Their heyday was probably during the 90s and early 2000s when several star hedge fund managers rose to prominence and their assets under management grew significantly. However, since then hedge funds have been under scrutiny as their investment returns have been lacking and their ability to function as a diversification to a traditional stock and bond portfolio was put into question. As hedge funds have their own set of leverage and investment rules it is no wonder they have been accused of being greedy, unsuccessful and secretive. However, with this dataset you can make your own analysis.

Content This dataset covers monthly hedge fund returns starting from 1997. The date column refers to the last day of the month - the end date of the return period, if I understand correctly. There are 12 different hedge fund strategies covered and the return index series are formed as an aggregate of other hedge fund index providers.

The strategy explanations are in EDHEC website:

Convertible Arbitrage - https://risk.edhec.edu/conv-arb/ CTA Global - https://risk.edhec.edu/cta-global/ Distressed Securities - https://risk.edhec.edu/dist-sec/ Emerging Markets - https://risk.edhec.edu/emg-mkts/ Equity Market Neutral - https://risk.edhec.edu/equity-market-neutral/ Event Driven - https://risk.edhec.edu/event-driven/ Fixed Income Arbitrage - https://risk.edhec.edu/fix-inc-arb/ Global Macro - https://risk.edhec.edu/global-macro/ Long/Short Equity - https://risk.edhec.edu/ls-equity/ Merger Arbitrage - https://risk.edhec.edu/merger-arb/ Relative Value - https://risk.edhec.edu/relative-value/ Short Selling - https://risk.edhec.edu/short-selling/ Funds of Funds - https://risk.edhec.edu/fof/ Acknowledgements All credit for the maintenance and upload of the data goes to EDHEC. You should check their website for additional resources:

https://risk.edhec.edu/all-downloads-hedge-funds-indices

Inspiration The EDHEC hedge fund data is the data used in examples/vignettes of PortfolioAnalytics - a package for optimizing, testing and analyzing portfolio returns. You should be easily able to expand the analysis from the vignettes just by using the larger dataset available here:

https://cran.r-project.org/web/packages/PortfolioAnalytics/index.html

Are hedge funds worth your money?

Hedge funds have developed from investment funds that were designed to lower the risk of your portfolio to a multitude of different investment styles with different goals. Their heyday was probably during the 90s and early 2000s when several star hedge fund managers rose to prominence and their assets under management grew significantly. However, since then hedge funds have been under scrutiny as their investment returns have been lacking and their ability to function as a diversification to a traditional stock and bond portfolio was put into question. As hedge funds have their own set of leverage and investment rules it is no wonder they have been accused of being greedy, unsuccessful and secretive. However, with this dataset you can make your own analysis.

Content

This dataset covers monthly hedge fund returns starting from 1997. The date column refers to the last day of the month - the end date of the return period, if I understand correctly. There are 12 different hedge fund strategies covered and the return index series are formed as an aggregate of other hedge fund index providers.

The strategy explanations are in EDHEC website:

• Convertible Arbitrage - https://risk.edhec.edu/conv-arb/
• CTA Global - https://risk.edhec.edu/cta-global/
• Distressed Securities - https://risk.edhec.edu/dist-sec/
• Emerging Markets - https://risk.edhec.edu/emg-mkts/
• Equity Market Neutral - https://risk.edhec.edu/equity-market-neutral/
• Event Driven - https://risk.edhec.edu/event-driven/
• Fixed Income Arbitrage - https://risk.edhec.edu/fix-inc-arb/
• Global Macro - https://risk.edhec.edu/global-macro/
• Long/Short Equity - https://risk.edhec.edu/ls-equity/
• Merger Arbitrage - https://risk.edhec.edu/merger-arb/
• Relative Value - https://risk.edhec.edu/relative-value/
• Short Selling - https://risk.edhec.edu/short-selling/
• Funds of Funds - https://risk.edhec.edu/fof/

Acknowledgements

All credit for the maintenance and upload of the data goes to EDHEC. You should check their website for additional resources:

https://risk.edhec.edu/all-downloads-hedge-funds-indices

Inspiration

The EDHEC hedge fund data is the data used in examples/vignettes of PortfolioAnalytics - a package for optimizing, testing and analyzing portfolio returns. You should be easily able to expand the analysis from the vignettes just by using the larger dataset available here:

https://cran.r-project.org/web/packages/PortfolioAnalytics/index.html

As of June 17, 2024, the most shorted stock was for, the American holographic technology services provider, MicroCloud Hologram Inc., with 66.64 percent of their total float having been shorted. This is a change from mid-January 2021, when video game retailed GameStop had an incredible 121.07 percent of their available shares in a short position. In effect this means that investors had 'borrowed' more shares (with a future promise to return them) than the total number of shares available for public trading. Owing to this behavior of professional investors, retail investors enacted a campaign to drive up the stock price of Gamestop, leading to losses of billions when investors had to repurchase the stock they had borrowed. At this time, a similar – but less effective – social media campaign was also carried out for the stock price of cinema operator AMC, and the price of silver. What is short selling? Short selling is essentially where an investor bets on a share price falling by: borrowing a number of shares selling these shares while the price is still high; purchasing the same number again once the price falls; then returning the borrowed shares at a profit. Of course, a profit will only be made if the share price does fall; should the share price rise the investor will then need to purchase the shares back at a higher price, and thus incur a loss. Short selling can lead to some very large profits in a short amount of time, with Tesla stock generating over one billion dollars in short sell profits during the first week of March 2020 alone, owing to the financial crash caused by the coronavirus (COVID-19) pandemic. However, owing to the short-term, opportunistic nature of short selling, these returns look less impressive when considered as net profits from short sell positions over the full year. The risks of short selling Short selling carries greater risks than traditional investments, and for this reason financial advisors often recommend against this strategy for ‘retail’ (i.e. non-professional) investors. The reason for this is that losses from short selling are potentially uncapped, whereas losses from traditional investments are limited to the initial cost. For example, if someone purchases 100 dollars of shares, the maximum they can lose is the 100 dollars the spent on those shares. However, say someone borrows 100 dollars of shares instead, betting on the price falling. If these shares are then sold for 100 dollars but the price subsequently rises, the losses could greatly exceed the initial investment should the price rise to, say, 500 dollars. The risks of short selling can be seen by looking again at Tesla, with the company causing the greatest losses over 2020 from short selling at over 40 billion U.S. dollars.

DAVP covers more than 2 million virtual portfolios created by 1.6 million users since 2013 and covers over 100 million rebalancing actions across all A-share stocks.

DAVP provides granular, record-level details for each rebalancing transaction, including the transition amount, price, and weight. Since 2022, it has also captured point-in-time (PIT) metadata on individual virtual portfolios, such as portfolio returns and popularity trends. This rich and structured dataset empowers clients to customize indicators based on their unique investment perspectives with ease.

In addition, by dividing the rebalancing records into different groups based on users’ experience, activity level, and portfolio diversity, DAVP provides easy-to-use derived insights into the investment strategy and behaviors of different groups of investors as below.

1)Popularity indicators. (e.g., number of rebalancing users/portfolios, number of rebalance, total rebalance weight/shares)

2)Sentiment indicators. (e.g., number of buy/sell users/portfolios, number of buy/sell weight/ shares, number of first buy users)

3)Market price indicators (e.g., buy/sell average/median price)

• Coverage: 5000+ A-share stocks
• History: From 2013-01-01
• Update Frequency: Daily

Context

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing to institutional investors, high net worth individuals and o and others who are considered sufficiently sophisticated.

Content

Below is a list of the top 100 largest hedge funds in the world, ranked by assets under management (AUM) for 2020.

Nearly 75% of the largest hedge fund companies by AUM are based in the United States. The UK is also home to a significant number of top hedge fund managers.

As of Q3, 2020 the world’s biggest hedge fund management company is AQR Capital Management, with nearly $250 billion USD in assets under management as of September 1, 2020. Global macro hedge funds are the most highly represented strategy among the world’s 100 largest hedge funds.

Acknowledgements

This dataset is scarped from hedgelists.com, I would like to thank their team for providing us with such great data.

Inspiration

I am working on this data to analyze how the assets under management(AUM) changed last year from the third quarter of 2020 for the world's top 100 hedge funds.

Also, the strategies adopted by the world's top hedge funds ### Context

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing to institutional investors, high net worth individuals and o and others who are considered sufficiently sophisticated.

Content

Below is a list of the top 100 largest hedge funds in the world, ranked by assets under management (AUM) for 2020.

Nearly 75% of the largest hedge fund companies by AUM are based in the United States. The UK is also home to a significant number of top hedge fund managers.

As of Q3, 2020 the world’s biggest hedge fund management company is AQR Capital Management, with nearly $250 billion USD in assets under management as of September 1, 2020. Global macro hedge funds are the most highly represented strategy among the world’s 100 largest hedge funds.

Acknowledgements

This dataset is scarped from hedgelists.com, I would like to thank their team for providing us with such great data.

Inspiration

I am working on this data to analyze how the assets under management(AUM) changed last year from the third quarter of 2020 for the world's top 100 hedge funds.

Also, the strategies adopted by the world's top hedge funds provided them with returns even in one of the most bizarre times in the world, i.e. covid pandemic.

Securities Lending Market was valued at USD 1.62 Billion in 2024 and is projected to reach USD 4.51 Billion by 2032, growing at a CAGR of 7.6% during the forecast period 2026 to 2032. Global Securities Lending Market Drivers:The market drivers for the Securities Lending Market can be influenced by various factors. These may include:Increased Demand for Short Selling: Hedge funds and institutional traders use short-selling methods to drive equities borrowing. This demand promotes market liquidity and price discovery, which directly benefits the securities lending market as these borrowers require access to huge volumes of lendable securities.Rising Institutional Investments: The growth in institutional assets under management expands the pool of securities accessible for lending. Institutions want to create additional revenue from idle assets; therefore they participate in lending programs to boost portfolio returns without selling core holdings.Expansion of Prime Brokerage Services: Prime brokers facilitate securities lending transactions between institutional lenders and hedge funds. As their service offerings develop globally, they provide more access and infrastructure, boosting the efficiency and size of the securities lending industry.

A list of the top 50 Berkshire Hathaway holdings showing which stocks are owned by Warren Buffett's hedge fund.

Global credit derivatives (gross - gross), for multi-name, total (all currencies), total (all currencies), total (all maturities), hedge funds, All countries (total), All countries (total), investment grade, total (all sectors), total (all methods), notional amounts - sold

Securities Borrowing Market Outlook

According to our latest research, the global securities borrowing market size reached USD 2.98 trillion in 2024, reflecting a robust financial ecosystem that underpins global capital markets. The market is projected to expand at a CAGR of 5.7% from 2025 to 2033, reaching an estimated USD 5.12 trillion by 2033. This growth is primarily driven by the increasing demand for short-selling strategies, enhanced liquidity requirements, and the need for efficient collateral management across institutional and retail investors.

One of the key growth factors for the securities borrowing market is the rising adoption of advanced trading strategies by hedge funds and asset managers. As financial markets become more sophisticated, institutional investors are leveraging securities borrowing to execute arbitrage, hedging, and short-selling strategies. This trend is further fueled by the proliferation of algorithmic trading and quantitative investment approaches, which require access to a diverse pool of borrowable securities. The increased appetite for risk-adjusted returns, coupled with the growing complexity of financial products, has significantly contributed to the expansion and sophistication of the securities borrowing ecosystem.

Another major growth driver stems from evolving regulatory frameworks and collateral optimization needs. Post-global financial crisis reforms have led to stricter capital and liquidity requirements for banks and other financial institutions, intensifying the demand for high-quality liquid assets (HQLA). Securities borrowing provides a mechanism for institutions to efficiently manage their collateral, meet margin requirements, and optimize balance sheet utilization. The emergence of central clearing counterparties (CCPs) and tri-party repo structures has also enhanced transparency and reduced counterparty risk, making securities borrowing more attractive and accessible to a broader range of market participants.

Technological advancements are also playing a pivotal role in shaping the securities borrowing market. The integration of blockchain, artificial intelligence, and real-time data analytics has streamlined the process of locating, borrowing, and returning securities. These innovations have not only improved operational efficiency but have also reduced settlement times and operational risks. The adoption of electronic trading platforms, coupled with increased connectivity between borrowers, lenders, and intermediaries, has further expanded market participation and facilitated cross-border transactions, thereby driving overall market growth.

From a regional perspective, North America continues to dominate the securities borrowing market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. The presence of deep and liquid capital markets, a diverse institutional investor base, and advanced market infrastructure have cemented North America’s leadership position. Meanwhile, Asia Pacific is witnessing the fastest growth, propelled by financial market liberalization, regulatory reforms, and the increasing participation of institutional investors in countries such as China, Japan, and Australia. Europe, with its well-established securities lending framework and high adoption of collateral optimization strategies, remains a key contributor to global market expansion.

Type Analysis

The securities borrowing market is segmented by type into Equity Securities Borrowing, Fixed Income Securities Borrowing, and Others. Equity securities borrowing remains the dominant segment, accounting for the majority of transactions globally. This is largely due to the high liquidity and trading volumes associated with equities, as well as their central role in short-selling and arbitrage strategies. Institutional investors, particularly hedge funds, frequently borrow equities to capitalize on market inefficiencies, hedge exposures, and enhance portfolio returns. The growing popularity of exchange-traded funds (ETFs) and index-based investment strategies has further amplified the demand for equity securities borrowing, as these instruments often require underlying equities to facilitate creation and redemption processes.

Fixed income securities borrowing, while smaller in comparison to equities, is gaining traction as investors seek to diversify their portfolios and manage interest rate r

Selling-General-and-Administrative Time Series for Aditya Birla Sun Life AMC Limited. Aditya Birla Sun Life AMC Limited is privately owned investment manager. The firm provides its services to individuals including high net worth individuals and institutional clients. It manages separate equity and fixed income portfolios. The firm also manages launches and manages equity and fixed income mutual funds, manages balanced mutual funds, and hedge funds for its clients. It invests in the public equity and fixed income markets across the globe. The firm employs a fundamental analysis to make its investments. It also make real estate investments. It was founded in 1994 and is based in Mumbai, India with an additional office in Ahmedabad, India. The firm was formerly known as Birla Sun Life Asset Management Company Limited.

Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Investment Fund Units data was reported at 107,300.000 RUB in Jan 2019. This records a decrease from the previous number of 1,802,953.200 RUB for Dec 2018. Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Investment Fund Units data is updated monthly, averaging 107,356,291.250 RUB from Aug 2015 (Median) to Jan 2019, with 42 observations. The data reached an all-time high of 2,137,080,477.500 RUB in Jan 2017 and a record low of 107,300.000 RUB in Jan 2019. Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Investment Fund Units data remains active status in CEIC and is reported by Moscow Exchange. The data is categorized under Russia Premium Database’s Financial Market – Table RU.ZB006: MICEX Stock Exchange: Turnover: Buy and Sell: Deals for Non Residents.

Securities Borrowing Market Outlook

According to our latest research, the global securities borrowing market size reached USD 2.61 trillion in 2024, reflecting robust activity across equity and fixed income segments. The market is expected to expand at a CAGR of 6.8% during the forecast period, with a projected value of USD 4.81 trillion by 2033. This growth is driven by increasing demand for liquidity solutions, regulatory changes boosting transparency, and the evolving needs of institutional investors. As per our latest research, the securities borrowing market is poised for significant expansion, underpinned by technological advancements and the proliferation of sophisticated trading strategies.

The primary growth factors for the securities borrowing market include the surge in demand for collateral optimization and risk management solutions. In the current financial landscape, banks, asset managers, and institutional investors are increasingly leveraging securities borrowing to enhance portfolio returns and maintain regulatory compliance. The growing complexity of global financial markets, coupled with the need for efficient capital utilization, has further accelerated the adoption of securities borrowing. Moreover, the integration of advanced analytics and automation technologies into securities lending platforms has streamlined operational workflows, reducing settlement times and minimizing counterparty risks. These advancements are fostering a more resilient and agile market environment, attracting new participants and expanding the market base.

Another significant driver is the increased participation of hedge funds and asset managers in securities borrowing activities. Hedge funds, in particular, utilize borrowed securities for short selling strategies, arbitrage opportunities, and hedging purposes. This has led to a substantial rise in transaction volumes and the diversification of borrowing instruments, extending beyond traditional equities into fixed income and other asset classes. Additionally, the global trend towards passive investment strategies and exchange-traded funds (ETFs) has created new avenues for securities borrowing, as these instruments require efficient lending and borrowing mechanisms to support liquidity and price discovery. The ongoing evolution of market infrastructure, including the adoption of blockchain and distributed ledger technologies, is also expected to enhance transparency, reduce operational risks, and improve settlement efficiency in the securities borrowing market.

Regulatory reforms and market liberalization across major financial centers have played a pivotal role in shaping the securities borrowing landscape. In regions such as North America and Europe, regulatory initiatives aimed at increasing transparency and reducing systemic risks have encouraged greater participation from institutional investors and pension funds. These reforms have also led to the standardization of lending practices, improved collateral management, and enhanced reporting requirements. As a result, market participants are better equipped to manage credit and liquidity risks, fostering a more robust and secure securities borrowing ecosystem. Furthermore, the entry of non-traditional participants, including retail investors and fintech platforms, is expected to democratize access to securities borrowing, driving further growth and innovation in the market.

From a regional perspective, North America continues to dominate the securities borrowing market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. The United States, in particular, benefits from a mature financial infrastructure, high liquidity, and a well-established regulatory framework. Europe is witnessing steady growth, driven by regulatory harmonization and the increasing adoption of electronic trading platforms. Meanwhile, the Asia Pacific region is emerging as a key growth engine, supported by rapid financial market development, rising institutional participation, and favorable government initiatives. Latin America and the Middle East & Africa are also experiencing gradual growth, albeit from a lower base, as market participants seek to diversify their portfolios and access new sources of liquidity.

In the context of securities borrowing, Margin Loans have emerged as a critical financial tool for investors

Global credit derivatives (gross - gross), for single-name, total (all currencies), total (all currencies), total (all maturities), hedge funds, All countries (total), All countries (total), below investment grade, total (all sectors), total (all methods), notional amounts - sold

In 2024, 54 percent of the households in the United States owned shares in a mutual fund. This is a significant increase on the 5.7 percent recorded in 1980, but close to 52 percent found in 2022.Mutual fundsA mutual fund is a variety of collective investment vehicle managed professionally that pools money from many investors to purchase securities. They play an important role in household finances in the United States of today, most notably in retirement planning. It is commonly applied only to the forms of collective investment that are regulated and are sold to the public at large. The majority of mutual funds are what is known as ‘open-ended’, meaning that shares can be bought or sold at anytime. There are a number of advantages associated with mutual funds as opposed to direct investment in individual securities. The nature of the fund as a collective investment vehicle provides increased diversification and ease of comparison to investors. The fact that they are managed professionally, and that the investment is pooled, enables participation in investments that would normally only be available to larger investors. Mutual funds are also stable in price as daily liquidity ensures minimum loss of value. Despite several advantages, as with every aspect of investment, some disadvantages are to be considered. Fees are an inevitable part of a professionally managed fund, as is the inability to customize the investment. A common complaint is also that the investor has less control over the timing of the recognition of their gains.

Securities Lending Market Outlook

According to our latest research, the global securities lending market size in 2024 stands at USD 2.85 billion, reflecting robust activity across capital markets worldwide. The market is experiencing a healthy expansion, supported by a compound annual growth rate (CAGR) of 7.3% from 2025 to 2033. By the end of 2033, the securities lending market is forecasted to reach a value of approximately USD 5.39 billion. This growth is primarily driven by increasing demand for short selling, the rising need for efficient collateral management, and the proliferation of sophisticated trading strategies among institutional investors.

The securities lending market is witnessing significant growth due to the expanding participation of institutional investors, such as pension funds, insurance companies, and mutual funds, who are increasingly leveraging securities lending as a tool to enhance portfolio returns. These entities are attracted by the prospect of generating incremental income through lending their securities to borrowers, typically hedge funds and proprietary trading desks, who require these assets for short selling and arbitrage strategies. Additionally, the growing sophistication and automation of securities lending platforms have streamlined operational processes, reducing risks and costs associated with lending transactions. As regulatory frameworks across major financial centers become more transparent and robust, market participants are gaining greater confidence in engaging in securities lending, further fueling the expansion of the market.

Another major growth factor for the securities lending market is the increasing complexity of collateral requirements in the wake of evolving regulatory mandates, such as Basel III and Dodd-Frank. These regulations have heightened the importance of effective collateral management, prompting financial institutions to optimize their collateral pools through securities lending. The ability to transform less liquid assets into high-quality collateral is particularly valuable in an environment where liquidity is paramount for meeting margin requirements and managing counterparty risk. The demand for high-quality liquid assets (HQLA) in the repo and derivatives markets has also contributed to the rising adoption of securities lending solutions, as lenders and borrowers seek to maximize capital efficiency without compromising regulatory compliance.

Technological advancements are playing a pivotal role in shaping the securities lending market landscape. The integration of blockchain, artificial intelligence, and advanced analytics is enhancing transparency, reducing settlement times, and improving risk assessment in securities lending transactions. These innovations are enabling market participants to gain real-time insights into market conditions, optimize lending strategies, and minimize operational risks. Furthermore, the rise of digital platforms and fintech solutions is facilitating greater market access for a broader range of participants, including smaller institutional investors and non-bank entities. As technology continues to evolve, it is expected to drive further efficiencies and foster innovation, thereby supporting the sustained growth of the securities lending market.

From a regional perspective, North America remains the dominant force in the securities lending market, owing to its mature financial infrastructure, high concentration of institutional investors, and advanced regulatory frameworks. Europe follows closely, benefiting from a well-established securities lending ecosystem and increasing cross-border activity within the European Union. The Asia Pacific region is emerging as a high-growth market, propelled by the rapid development of capital markets, regulatory modernization, and rising participation of global investors. Latin America and the Middle East & Africa are also witnessing gradual growth, driven by financial market reforms and increased awareness of the benefits of securities lending. Overall, the global securities lending market is set to expand steadily, underpinned by a confluence of technological, regulatory, and market-driven factors.

Component Analysis

The securities lending market is segmented by component into lenders, borrowers, and intermediaries, each playing a critical role in the market ecosystem. Lenders, primarily institutional investors such as pension

Turkey Internet Banking: FT: IN: Vol: Investment Funds: Sell data was reported at 945.759 Unit th in Mar 2018. This records a decrease from the previous number of 968.464 Unit th for Dec 2017. Turkey Internet Banking: FT: IN: Vol: Investment Funds: Sell data is updated quarterly, averaging 1,512.429 Unit th from Mar 2007 (Median) to Mar 2018, with 45 observations. The data reached an all-time high of 2,899.830 Unit th in Jun 2009 and a record low of 945.759 Unit th in Mar 2018. Turkey Internet Banking: FT: IN: Vol: Investment Funds: Sell data remains active status in CEIC and is reported by The Banks Association of Turkey. The data is categorized under Global Database’s Turkey – Table TR.KA010: Internet Banking Statistics.

This dataset contains a list of financial firms registered with the Securities and Futures Commission (SFC) in Hong Kong, enriched with an automated classification of firms based on their business type. The classification was performed using a Large Language Model (LLM) to categorize firms into one of four groups:

• Buy-Side (e.g., hedge funds, asset managers)
• Sell-Side (e.g., investment banks, brokerage firms)
• Proprietary Trading (prop trading firms)
• Other (entities that do not fit neatly into the above categories)

Where available, the dataset includes both English and Chinese firm names, along with unique identifiers.

Important Notes:

• The classification is LLM-generated and, while generally reliable, may contain misclassifications, particularly for smaller, newer, lesser-known firms or firms with ambiguous names.
• This dataset can be used for exploratory analysis of Hong Kong’s financial industry, machine learning experiments, macroeconomic or regulatory studies.

Citation & Reference

This dataset was developed as part of ongoing research on the composition of Hong Kong’s financial sector. If you find it useful, please cite the following study:

Citation:

AlKetbi, Abdulla; Marti, Gautier; AlNuaimi, Khaled; Jaradat, Raed; and Henschel, Andreas. “Mapping Hong Kong’s Financial Ecosystem: A Network Analysis of the SFC’s Licensed Professionals and Institutions.” Complex Networks and Their Applications (Complex Networks 2024), 2024.

BibTeX Reference:

@inproceedings{alketbi2024mapping,
 title    = {Mapping Hong Kong's Financial Ecosystem: A Network Analysis of the SFC's Licensed Professionals and Institutions},
 author    = {AlKetbi, Abdulla and Marti, Gautier and AlNuaimi, Khaled and Jaradat, Raed and Henschel, Andreas},
 booktitle  = {Complex Networks and Their Applications (Complex Networks 2024)},
 year     = {2024},
 note     = {Accepted for presentation}
}

If you have any feedback or find interesting insights, feel free to share in the Discussion tab!

Securities Financing Market Outlook

According to our latest research, the global securities financing market size reached USD 3.7 trillion in 2024, underscoring its critical role in global capital markets. The market is projected to grow at a robust CAGR of 7.2% from 2025 to 2033, reaching an estimated USD 7.01 trillion by 2033. This sustained growth is primarily driven by increasing trading volumes, the rising complexity of financial instruments, and a greater need for liquidity management among financial institutions worldwide. The market’s expansion is further bolstered by regulatory reforms, technological advancements, and the growing participation of non-bank entities in securities financing transactions.

One of the primary growth factors influencing the securities financing market is the evolving regulatory landscape. Post-2008 financial crisis, regulators across North America, Europe, and Asia Pacific have implemented stringent capital and liquidity requirements, compelling banks and other financial institutions to optimize their balance sheets. As a result, securities financing transactions such as repurchase agreements and securities lending have become vital tools for managing regulatory capital and liquidity buffers. Moreover, these instruments enable market participants to access short-term funding and generate additional yield, thus enhancing overall market efficiency and stability. The increasing adoption of collateral optimization strategies, driven by regulatory mandates such as Basel III and the European Market Infrastructure Regulation (EMIR), has further accelerated the demand for innovative securities financing solutions across global markets.

Another significant driver is the rapid advancement in financial technology, which has transformed the operational landscape of securities financing. Automation, blockchain integration, and artificial intelligence have improved transparency, reduced settlement times, and minimized operational risks. These technological innovations facilitate real-time collateral management, enhance risk analytics, and streamline the negotiation and execution of securities financing agreements. Market participants are increasingly leveraging technology to meet regulatory reporting requirements, optimize collateral allocation, and improve overall operational efficiency. The proliferation of electronic trading platforms and the digitization of securities lending and repo markets have also contributed to greater market accessibility, attracting new participants such as hedge funds, asset managers, and non-bank financial institutions.

The growing complexity and diversification of investment strategies among institutional investors further fuel the expansion of the securities financing market. Hedge funds, asset management firms, and pension funds are increasingly utilizing securities financing transactions to support leverage strategies, facilitate short selling, and enhance portfolio returns. The demand for securities lending and margin lending is particularly pronounced in markets with high trading volumes and sophisticated investment products. Additionally, the rise of passive investment vehicles such as exchange-traded funds (ETFs) has amplified the need for efficient securities lending programs, enabling asset managers to generate incremental income for their clients. The convergence of these factors underscores the strategic importance of securities financing in modern capital markets.

From a regional perspective, North America remains the largest market for securities financing, accounting for a substantial share of global transaction volumes in 2024. However, Asia Pacific is witnessing the fastest growth, driven by the liberalization of financial markets, increasing cross-border capital flows, and the rapid adoption of advanced trading technologies. Europe continues to play a pivotal role, supported by a mature regulatory framework and the presence of major financial hubs such as London, Frankfurt, and Paris. Meanwhile, Latin America and the Middle East & Africa are emerging as attractive markets, fueled by economic diversification, regulatory reforms, and growing investor participation in capital markets. The interplay of these regional dynamics is expected to shape the future trajectory of the securities financing market.

Product Type Analysis

The securities financing market is segmented by product type into repurchase agreements (repos), secur