Global securities finance revenue climbs 1% for Q3 2023, says DataLend
04 October 2023 US
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The global securities finance industry generated US$2.65 billion in revenue for lenders in Q3 2023, a 1 per cent year-on-year increase from Q3 2022, according to DataLend.
In September 2023, the industry generated US$767 million in revenue for lenders, representing a 6 per cent decrease from the previous year.
The dip was largely driven by a cooling in the US equity lending market, where fees declined 43 per cent month-on-month and 21 per cent YoY. As a result, US specials revenue dropped to US$166 million from the US$362 million generated in August 2023.
According to the market data service of fintech EquiLend, global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — generated an additional US$680 million in revenue during Q3 2023, representing a 6 per cent decrease year-over-year.
A 27 per cent YoY rise in APAC lending revenue helped to offset dips in North America and EMEA in Q3 2023, which faced YoY declines of 3 per cent and 12 per cent, respectively.
Global equity performance saw a slight YoY decline of 1 per cent, with fixed income securities revenue rising by 7 per cent YoY during the third quarter.
DataLend says the improvement was fuelled by continued growth in corporate bonds, which were up 24 per cent YoY in Q3.
The top five earners in September 2023 were Ecopro Co Ltd (086520 KS), Fisker Inc. (FSKR US), Country Garden Holdings Co Ltd (2007 HK), Sirius XM Holdings Inc. (SIRI US) and C3.AI Inc. (AI US). In total, the group generated US$43 million in revenue in the month.
In September 2023, the industry generated US$767 million in revenue for lenders, representing a 6 per cent decrease from the previous year.
The dip was largely driven by a cooling in the US equity lending market, where fees declined 43 per cent month-on-month and 21 per cent YoY. As a result, US specials revenue dropped to US$166 million from the US$362 million generated in August 2023.
According to the market data service of fintech EquiLend, global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — generated an additional US$680 million in revenue during Q3 2023, representing a 6 per cent decrease year-over-year.
A 27 per cent YoY rise in APAC lending revenue helped to offset dips in North America and EMEA in Q3 2023, which faced YoY declines of 3 per cent and 12 per cent, respectively.
Global equity performance saw a slight YoY decline of 1 per cent, with fixed income securities revenue rising by 7 per cent YoY during the third quarter.
DataLend says the improvement was fuelled by continued growth in corporate bonds, which were up 24 per cent YoY in Q3.
The top five earners in September 2023 were Ecopro Co Ltd (086520 KS), Fisker Inc. (FSKR US), Country Garden Holdings Co Ltd (2007 HK), Sirius XM Holdings Inc. (SIRI US) and C3.AI Inc. (AI US). In total, the group generated US$43 million in revenue in the month.
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