Hammer Time – Joel Clark plots the rise in popularity of internet-based auction platforms for the securities lending industry and explains the transparency and competition benefits offered by such systems.

Estimates suggest that the global balance of securities on loan far exceeds $3 trillion. Traditionally a manual process between borrowers and lenders, the latest technology allows lenders to put their securities onto a web-based auction platform and invite bids from potential borrowers. The model competes not only with manual processing but also with some existing platforms, which offer users electronic communication and execution to complete the lending process.

The concept of auctioning exc