Securities finance revenue jumps 20% for H1 2023, says DataLend
06 July 2023 US
Image: Konstantin/stock.adobe.com
The global securities finance industry generated US$5.8 billion in revenue for lenders in H1 2023, a 20 per cent increase on H1 2022, according to DataLend.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, accounted for an additional US$1.5 billion in revenue for H1 2023.
The market data service of fintech EquiLend reports that lenders generated US$3.0 billion in revenue in the second quarter of the year, which drove “improved” H1 figures.
North America, EMEA and APAC also saw improved performances in both equities and fixed income, with North American equities becoming the largest overall contributor with a 27 per cent increase over the first half of 2022.
For the month of June, the global securities finance industry generated US$888 million in revenue for lenders, representing a 16 per cent month-on-month decrease from May 2023 and a 1 per cent fall year-over-year.
Global equity revenue also contracted YoY, contracting 5 per cent in June relative to June 2022. However, lending revenue for fixed income securities has risen 15 per cent for the same period.
The broker-to-broker market generated an additional US$232 million in revenue in June, representing a 12 per cent decrease YoY.
The top five earners in the securities lending market in June 2023 were AMC Entertainment Holdings (AMC), C3.AI Inc. (AI), Sirius XM Holdings (SIRI), Beyond Meat Inc. (BYND) and Nikola Corporation (NKLA). The five securities in total generated nearly US$90 million in revenue for the month.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, accounted for an additional US$1.5 billion in revenue for H1 2023.
The market data service of fintech EquiLend reports that lenders generated US$3.0 billion in revenue in the second quarter of the year, which drove “improved” H1 figures.
North America, EMEA and APAC also saw improved performances in both equities and fixed income, with North American equities becoming the largest overall contributor with a 27 per cent increase over the first half of 2022.
For the month of June, the global securities finance industry generated US$888 million in revenue for lenders, representing a 16 per cent month-on-month decrease from May 2023 and a 1 per cent fall year-over-year.
Global equity revenue also contracted YoY, contracting 5 per cent in June relative to June 2022. However, lending revenue for fixed income securities has risen 15 per cent for the same period.
The broker-to-broker market generated an additional US$232 million in revenue in June, representing a 12 per cent decrease YoY.
The top five earners in the securities lending market in June 2023 were AMC Entertainment Holdings (AMC), C3.AI Inc. (AI), Sirius XM Holdings (SIRI), Beyond Meat Inc. (BYND) and Nikola Corporation (NKLA). The five securities in total generated nearly US$90 million in revenue for the month.
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