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Ron Kaniel

Institution

University of Rochester

PhD Year

1999

ron.kaniel@simon.rochester.edu

FTG Membership

Member

Website

http://rkaniel.simon.rochester.edu/

Featured Work

Market Power in the Securities Lending Market

Jul 1, 2026

Shuaiyu Chen, Ron Kaniel, Christian Opp

We document market power in U.S. equity securities lending and examine its origins and consequences. We develop a dynamic model of securities lending and estimate it on the cross-section of U.S. equities, showing that the dominant custodian-intermediated market structure emerges as a response to short sellers' information-leakage concerns. Short sellers prefer this opaque market structure over a centralized alternative, particularly for smaller stocks, despite the...