Securities lending is growing up. What was once a back-office function carried out by a custodian has become an important part of asset management that requires scale, transparency and sophistication. Hedge fund growth and proprietary trading have increased borrowing demand while fund managers and pension funds are looking to bolster performance through lending.

Paul Wilson, head of securities lending and investment products at JP Morgan Worldwide Securities Services, said: "Many positives are entering the sector in terms of new supply, greater acceptance of securities lending and more stock borrowing." Data Explorers, a securities lending monitoring service, estimates total lendable assets have risen to $16 trillion (€13 trillion) globally.