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EquiLend today announced the launch of its new Short Squeeze Score service, which tracks securities at elevated risk based on real-time securities lending activity.
This proprietary metric is now live across 50,000+ global equities via the firm’s Data & Analytics platform, leveraging combined insights from market behaviour, securities finance activity and social sentiment.
The signal enables traders, portfolio managers and risk teams to proactively mitigate risk in their portfolios by identifying the likelihood that a given security may be vulnerable to a short squeeze.
A short squeeze occurs when a heavily shorted security experiences a rapid price increase, forcing short sellers to cover positions and accelerating upward price pressure.
“With today’s market volatility and uncertainty, the ability to proactively identify the risk of a short squeeze is more valuable than ever,” said Nancy Allen, who heads Data & Analytics Solutions at EquiLend.
“Built on our transaction-based securities finance data, our score brings greater transparency to the global short sale market — and we’re excited to share it.”