Global securities lending revenue up 8% YoY for August, reports DataLend
06 September 2023 US
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The global securities finance industry generated US$945 million in revenue for lenders in August 2023, an 8 per cent year-on-year increase from August 2022, according to market data provider DataLend.
Month-on-month, this represents a 0.2 per cent increase on the revenue recorded in July 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled US$241 million in revenue for lenders, a 0.4 per cent decrease YoY.
In the US, equities market revenues rose 8 per cent YoY. US equity performance was driven by AMC, Kenvue, and former Kenvue parent Johnson & Johnson, which together brought in US$182 million — equating to 40 per cent of August’s US equity lending revenue.
In contrast, EMEA equities revenue fell 30 per cent YoY and 21 per cent MoM for August.
Similarly to July’s performance, APAC equities were the most improved asset class YoY, according to DataLend. While Korean equities continued to be a highlight with 114 per cent YoY growth.
The market data provider also reports a 29 per cent YoY increase in lender-to-broker revenue, which was driven by a 14 per cent incline in balances and a 13 per cent jump in borrow fees.
The top five earners in the securities lending market in August 2023 were AMC Entertainment (AMC), Kenvue Inc. (KVUE), Johnson & Johnson (JNJ), Nikola Corporation (NKLA) and Sirius XM Holdings (SIRI). The five securities generated US$217 million in revenue for the month.
Corporate debt continued to grow, gaining 21 per cent YoY.
Month-on-month, this represents a 0.2 per cent increase on the revenue recorded in July 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled US$241 million in revenue for lenders, a 0.4 per cent decrease YoY.
In the US, equities market revenues rose 8 per cent YoY. US equity performance was driven by AMC, Kenvue, and former Kenvue parent Johnson & Johnson, which together brought in US$182 million — equating to 40 per cent of August’s US equity lending revenue.
In contrast, EMEA equities revenue fell 30 per cent YoY and 21 per cent MoM for August.
Similarly to July’s performance, APAC equities were the most improved asset class YoY, according to DataLend. While Korean equities continued to be a highlight with 114 per cent YoY growth.
The market data provider also reports a 29 per cent YoY increase in lender-to-broker revenue, which was driven by a 14 per cent incline in balances and a 13 per cent jump in borrow fees.
The top five earners in the securities lending market in August 2023 were AMC Entertainment (AMC), Kenvue Inc. (KVUE), Johnson & Johnson (JNJ), Nikola Corporation (NKLA) and Sirius XM Holdings (SIRI). The five securities generated US$217 million in revenue for the month.
Corporate debt continued to grow, gaining 21 per cent YoY.
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