Market Overview

Introducing Benzinga's Securities Lending Volatility Indicator, Powered By Tidal Markets

Introducing Benzinga's Securities Lending Volatility Indicator, Powered By Tidal Markets

Benzinga’s Securities Lending Volatility Indicator (SLVX) Powered by Tidal Markets, is an indicator that forecasts stock market activity for broader indices and individual securities.

Benzinga is pleased to announce it will begin featuring articles pertaining to the SLVX's movements and other news through its website and platform.

This new product forecasts market volatility by calculating the spread of rebate rates within the upstream securities lending markets. Securities lending markets primarily serve the purpose of providing liquidity for traders to short sell stocks.

Similar to the Chicago Board Option’s Exchange volatility index (VIX), which examines options trades to measure volatility, the SLVX examines securities lending trades to measure volatility. Before markets get turbulent, the spread in securities lending rebate rates (the cost to borrow a security) grows. The SLVX registers this change and can reflect the incoming volatility resulting from the divergence.

The correlation between securities lending market activity and equity market activity is statistically meaningful at the index level as well as for individual securities. By utilizing the SLVX, stock market participants can have advanced warning of impending downstream activity in equity markets.

The SLVX covers 40,000 global securities, with over 8 years of historical data. Data feeds for the SLVX are delivered daily via FTP during pre-market hours.

Posted-In: SLXV Tidal MarketsEducation Topics Markets General


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