09 March 2017
London
Reporter: Mark Dugdale
Snap crackles following popular IPO
Short sellers were quick to snap up shares of the parent company of picture messaging app Snapchat following its closely watched initial public offering.

Snap opened on 2 March at $24 per share, rising to a peak of $29.44 during the second day, before falling back slightly to close at $27.09, FIS Astec Analytics has reported. But the market wouldn’t support those prices and the stock closed at $21.44 on 7 March.

“This price is still well above most target prices for this issue, suggesting that a large volume of short sales would not be a surprise,” FIS Astec Analytics explained in a note on the stock.

Securities lending market participants didn’t disappoint. Lending activity started early on 7 March and by noon there were 3.3 million shares being borrowed, with the levels of demand making Snap shares among the most expensive specials.

By 1pm on 7 March, an additional 2.4 million shares had been borrowed, according to FIS Astec Analytics intraday data.

In total, 10.2 million shares were on loan by the end of the day on 7 March, with a weighted average cost well into the specials range.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Delta Capita acquires Appendium
27 April 2017 | London | Reporter: Mark Dugdale
Business and technology consultancy Delta Capita has acquired Appendium as it gears up to launch a securities finance utility later this year
Squawker launches equity finance platform
27 April 2017 | London | Reporter: Mark Dugdale
The new platform provides a central hub for European equity finance participants to bring the execution of their equity hedge trades on-exchange. Squawker said six investment banks are participating
Borrowers becoming increasingly picky
26 April 2017 | London | Reporter: Drew Nicol
Risk-weighted asset ratings under Basel III are dictating the attractiveness of lenders’ assets, heard attendees of the Finadium Investors in Securities Lending Conference in London
Tesla may finally break its shorting cycle
26 April 2017 | London | Reporter: Drew Nicol
Short sellers have been consistently closing positions, reducing their exposure to Tesla by some 16 percent, since 20 March
State Street taps Sporn for enhanced custody team
26 April 2017 | New York | Reporter: Drew Nicol
Sporn brings 15 years of securities lending experience to State Street’s enhanced custody team
New faces on DTCC board of directors
25 April 2017 | New York | Reporter: Stephanie Palmer
DTCC has appointed four new members to its board of directors
NEX Group pairs ENSO and RSRCHX for MiFID II solution
25 April 2017 | New York | Reporter: Drew Nicol
The NEX Group's ENSO, a centralised treasury management solution for the buy side, is set to expand its broker vote tool to include research consumption for the second Markets in Financial Instruments Directive