Global securities finance industry generates US$811 million for November, says DataLend
05 December 2022 US
Image: Razvan/stock.adobe.com
The global securities finance industry generated US$811 million in revenue for lenders in November 2022, a 3 per cent year-over-year increase from November 2021, according to DataLend.
Month-over-month, the revenue generated for lenders in November represents a 4 per cent increase from the US$781 million generated for lenders in October 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$210 million in revenue in November, a 9 per cent decrease from November 2021.
The market data service of fintech EquiLend highlights that the improvement in lender-to-broker revenue over 2021 was driven primarily by a strong performance in EMEA, which saw a 27 per cent increase in total revenue.
Looking more specifically at equities, a 23 per cent spike in on-loan balances drove revenue up by 25 per cent.
Global fixed income performance was strong, indicates DataLend. Government debt revenue grew 9 per cent and corporate debt revenue climbed 67 per cent, both of which were driven by higher average fees of 10 per cent and 75 per cent, respectively.
In North America, equities saw a decline in revenue of 4 per cent due to a decrease in on-loan balances of 5 per cent. Similarly, Asian equities saw a decline in revenue of 16 per cent, driven by a decrease in average fees of 14 per cent over 2021.
The top five earners in November 2022 were AMC Entertainment Holdings (AMC), MicroStrategy (MSTR), ASML Holdings N.V. (ASML), Sirius XM Holdings (SIRI), and Lucid Group (LCID). The five securities in total generated nearly US$73 million in revenue in the month.
Month-over-month, the revenue generated for lenders in November represents a 4 per cent increase from the US$781 million generated for lenders in October 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$210 million in revenue in November, a 9 per cent decrease from November 2021.
The market data service of fintech EquiLend highlights that the improvement in lender-to-broker revenue over 2021 was driven primarily by a strong performance in EMEA, which saw a 27 per cent increase in total revenue.
Looking more specifically at equities, a 23 per cent spike in on-loan balances drove revenue up by 25 per cent.
Global fixed income performance was strong, indicates DataLend. Government debt revenue grew 9 per cent and corporate debt revenue climbed 67 per cent, both of which were driven by higher average fees of 10 per cent and 75 per cent, respectively.
In North America, equities saw a decline in revenue of 4 per cent due to a decrease in on-loan balances of 5 per cent. Similarly, Asian equities saw a decline in revenue of 16 per cent, driven by a decrease in average fees of 14 per cent over 2021.
The top five earners in November 2022 were AMC Entertainment Holdings (AMC), MicroStrategy (MSTR), ASML Holdings N.V. (ASML), Sirius XM Holdings (SIRI), and Lucid Group (LCID). The five securities in total generated nearly US$73 million in revenue in the month.
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