Australia has the most mature economy in the Asia Pacific region and was able to weather the global financial crisis better than many other developed markets. However, like most countries around the globe, it was not completely unaffected.

The credit crisis which began in September 2008 had a profound impact on the securities lending industry there with extensive short selling bans, regulatory changes and a large amount of negative press coverage.

Indeed, the Australian market was the last major global jurisdiction to lift its ban on short selling back in May last year in the face of vociferous calls from the industry to do so.

Activity in the region declined over the past 18 months – as it did in many markets – but it looks as though the country is in the midst of a recovery.

The market failed to hit the lows that many others did partly because of its...