Benzinga and Tidal Markets team up on sec lending product
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Benzinga and Tidal Markets team up on sec lending product 18 January 2019Detroit Reporter: Maddie Saghir
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Benzinga and Tidal Markets have formed a partnership to deliver the Securities Lending Volatility Indicator (SLVX).
This new product forecasts market volatility for the broader indices and individual securities in a unique way, according to Benzinga.
The product will be labelled as 鈥楤enzinga SLVX鈥� and the raw data feed will be available to clients through Benzinga鈥檚 licensing team.
Additionally, by calculating the spread of rebate rates when borrowing a position to short sell, the indicator can predict movements without relying on the older, more traditional volatility index (VIX), Benzinga revealed.
Before markets get turbulent, the spread in rebate grows and the SLVX anticipates the incoming volatility.
John Bolton, vice president of data operations, Benzinga, said: 鈥淭he SLVX presents a unique approach to anticipating volatility in stocks, and the simplicity of its output allows it to be utilised in a variety of trading strategies. This exclusive partnership will advantageously position us to provide quality data to a growing market."
"We're excited to use our skills as a data distributor and media company to deliver the SLVX in a streamlined & engaging way to our clients."
Christopher Sappo, managing principal, Tidal Markets, added: 鈥淚'm excited for the opportunity to partner with Benzinga. The ability to utilise a new instrument for detecting volatility, especially in such recent volatile times, demonstrates the value-add the SLVX has to the investment community."
鈥淔or so long, investors have relied on byproducts of the VIX as the sole indicator for detecting volatility鈥攁nd that's about to change.鈥�
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