Global securities lending revenue up 34% YoY for October
02 November 2021 US
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The global securities lending revenue was up 34 per cent in October YoY to US$821 million, according to DataLend.
The market data firm reports a four per cent rise in revenue across the global securities finance industry, which generated US$821 million in revenue for lenders in October 2021, in comparison to US$790 million in September 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$225 million in revenue in October, a 20 per cent increase from the previous year.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by an increase in fees in Asia and balances in North America. The average fee for Asian equities increased by over 27 basis points (bps) to 105 bps, while the average on-loan value in North America increased by 23 per cent compared to the prior year.
For fixed-income securities, global revenue generated from government debt saw a 31 per cent increase YoY, while corporate debt increased 81 per cent. These were mainly driven by rises in average on-loan value of 21 per cent and 47 per cent, respectively. The average fee for corporate debt also increased by 24 per cent, from 17 bps in October 2020 to 21 bps last month.
The top five lending revenue-generating securities in October were Robinhood Markets (HOOD), VMware (VMW), Ginkgo Bioworks (DNA), Faraday Future (FFIE) and Microvast (MVST). The five securities in total generated over US$105 million in revenue in the month.
The market data firm reports a four per cent rise in revenue across the global securities finance industry, which generated US$821 million in revenue for lenders in October 2021, in comparison to US$790 million in September 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$225 million in revenue in October, a 20 per cent increase from the previous year.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by an increase in fees in Asia and balances in North America. The average fee for Asian equities increased by over 27 basis points (bps) to 105 bps, while the average on-loan value in North America increased by 23 per cent compared to the prior year.
For fixed-income securities, global revenue generated from government debt saw a 31 per cent increase YoY, while corporate debt increased 81 per cent. These were mainly driven by rises in average on-loan value of 21 per cent and 47 per cent, respectively. The average fee for corporate debt also increased by 24 per cent, from 17 bps in October 2020 to 21 bps last month.
The top five lending revenue-generating securities in October were Robinhood Markets (HOOD), VMware (VMW), Ginkgo Bioworks (DNA), Faraday Future (FFIE) and Microvast (MVST). The five securities in total generated over US$105 million in revenue in the month.
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