Global securities lending revenue drops 5% YoY for October, says DataLend
03 November 2022 US
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EquiLends market data service DataLend has reported a 5 per cent year-over-year drop in global securities lending revenue as the industry generates US$781 million in October 2022.
Month-over-month, the revenue generated for lenders in October represents a 4 per cent decrease from the US$814 million generated for lenders in September 2022.
For October 2022, global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$217 million in revenue, a 3 per cent decrease from October 2021.
The decrease in lender-to-broker revenue over 2021 was driven primarily by Asian equities, according to DataLend. Average fees decreased by 14 per cent, resulting in an 18 per cent decrease in revenue generated in the region.
In North America, equities declined 8 per cent in revenue due to a drop in average fees of 6 per cent. In addition, EMEA equities saw a decline in revenue of 16 per cent, which was driven by a downfall in average fees of 26 per cent over 2021.
The market data service reported that global revenue for fixed income securities generated from government debt saw an 11 per cent increase, while corporate debt increased 64 per cent.
Both increases in revenue were driven by rises in the average fees of 19 per cent and 76 per cent, respectively.
The top five earners in October 2022 were MicroStrategy (MSTR), Cassava Science (SAVA), Sirius XM Holdings (SIRI), Lucid Group (LCID), and AMC Entertainment Holdings (AMC). The five securities in total generated over US$60 million in revenue in the month.
Month-over-month, the revenue generated for lenders in October represents a 4 per cent decrease from the US$814 million generated for lenders in September 2022.
For October 2022, global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$217 million in revenue, a 3 per cent decrease from October 2021.
The decrease in lender-to-broker revenue over 2021 was driven primarily by Asian equities, according to DataLend. Average fees decreased by 14 per cent, resulting in an 18 per cent decrease in revenue generated in the region.
In North America, equities declined 8 per cent in revenue due to a drop in average fees of 6 per cent. In addition, EMEA equities saw a decline in revenue of 16 per cent, which was driven by a downfall in average fees of 26 per cent over 2021.
The market data service reported that global revenue for fixed income securities generated from government debt saw an 11 per cent increase, while corporate debt increased 64 per cent.
Both increases in revenue were driven by rises in the average fees of 19 per cent and 76 per cent, respectively.
The top five earners in October 2022 were MicroStrategy (MSTR), Cassava Science (SAVA), Sirius XM Holdings (SIRI), Lucid Group (LCID), and AMC Entertainment Holdings (AMC). The five securities in total generated over US$60 million in revenue in the month.
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