ETPs more popular for securities lending and collateral

Ongoing volatility and rising interest rates have given U.S. exchange-traded products the opportunity to prove themselves useful in remote corners of the financial markets.

After a surge in 2021, securities-lending revenue for ETPs has continued to climb, according to S&P Global Market Intelligence, even as headline flows have abated. Additionally, short-term Treasury exchange-traded funds are also being used as collateral in both the securities finance market and meeting margin requirements.