Global securities lending revenue rises 10% YoY for August, says DataLend
06 September 2022 US
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The global securities finance industry generated US$878 million in revenue for lenders in August 2022, representing a 10 per cent increase year-over-year from August 2021, according to DataLend.
Compared to the previous month, the revenue generated for lenders in August 2022 contracted 6 per cent from the US$939 million generated for lenders in July 2022.
According to the market data service of fintech EquiLend, global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — totalled an additional US$242 million in revenue in August 2022, a 15 per cent increase YoY.
The increase in lender-to-broker revenue over 2021 was driven primarily by North American equities, where average fees increased by 36 per cent, resulting in a 36 per cent rise in revenue generated.
In the Asia Pacific region, equities saw a decline in revenue of 21 per cent due to a decrease in average fees of 15 per cent.
In EMEA, equities lending revenues fell 35 per cent, driven by a reduction in average fees of 54 per cent over 2021.
For fixed income securities, global revenue generated from government debt rose 11 per cent, while corporate debt increased 98 per cent. Both increases in revenue were driven by rises in the average fees of 15 per cent and 83 per cent, respectively.
The top five earners in August 2022 were Gamestop Corporation (GME), Beyond Meat (BYND), Lucid Group (LCID), Sirius XM Holdings (SIRI) and Dutch Bros (BROS). The five securities in total generated over US$117 million in revenue in the month.
Compared to the previous month, the revenue generated for lenders in August 2022 contracted 6 per cent from the US$939 million generated for lenders in July 2022.
According to the market data service of fintech EquiLend, global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — totalled an additional US$242 million in revenue in August 2022, a 15 per cent increase YoY.
The increase in lender-to-broker revenue over 2021 was driven primarily by North American equities, where average fees increased by 36 per cent, resulting in a 36 per cent rise in revenue generated.
In the Asia Pacific region, equities saw a decline in revenue of 21 per cent due to a decrease in average fees of 15 per cent.
In EMEA, equities lending revenues fell 35 per cent, driven by a reduction in average fees of 54 per cent over 2021.
For fixed income securities, global revenue generated from government debt rose 11 per cent, while corporate debt increased 98 per cent. Both increases in revenue were driven by rises in the average fees of 15 per cent and 83 per cent, respectively.
The top five earners in August 2022 were Gamestop Corporation (GME), Beyond Meat (BYND), Lucid Group (LCID), Sirius XM Holdings (SIRI) and Dutch Bros (BROS). The five securities in total generated over US$117 million in revenue in the month.
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