Global sec lending revenue falls 4% YoY for November, says DataLend
05 December 2023 US
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The global securities finance industry has faced a 4 per cent year-on-year decrease in revenue for lenders to US$781 million for November 2023, according to DataLend.
Month-over-month, this figure represents a 4 per cent increase from the US$751 million in revenue for lenders generated in October 2023.
The EquiLend market data service reports a 3 per cent YoY increase in global broker-to-broker activity, generating an additional US$215 million in revenue in November.
The acquisition of cloud-computing firm VMware (VMW) by chipmaker Broadcom (AVGO) helped to spur a resurgence in US specials, the data service says, with lending in VMW generating more than US$50 million in lending revenue, contributing a 45 per cent growth in specials MoM.
According to DataLend, the month saw a “continuation of macro trends with a stark drop in EMEA lending revenue accounting for overall decline”.
Total revenue in the region was down 38 per cent YoY, with fees and balances declining by 18 per cent and 19 per cent respectively.
Equities faced a dip in the EMEA region, with lending revenue falling by 48 per cent.
In contrast, North America and APAC both experienced 11 per cent YoY growth in equity lending revenue.
The top five earning securities in November were VMware Inc. (VMW US), Sirius XM Holdings Inc. (SIRI US), Cassava Sciences Inc. (SAVA US), Lucid Group Inc. (LCID US), and CAVA Group (CAVA US).
The five securities in total generated more than US$113 million in revenue for the month.
Month-over-month, this figure represents a 4 per cent increase from the US$751 million in revenue for lenders generated in October 2023.
The EquiLend market data service reports a 3 per cent YoY increase in global broker-to-broker activity, generating an additional US$215 million in revenue in November.
The acquisition of cloud-computing firm VMware (VMW) by chipmaker Broadcom (AVGO) helped to spur a resurgence in US specials, the data service says, with lending in VMW generating more than US$50 million in lending revenue, contributing a 45 per cent growth in specials MoM.
According to DataLend, the month saw a “continuation of macro trends with a stark drop in EMEA lending revenue accounting for overall decline”.
Total revenue in the region was down 38 per cent YoY, with fees and balances declining by 18 per cent and 19 per cent respectively.
Equities faced a dip in the EMEA region, with lending revenue falling by 48 per cent.
In contrast, North America and APAC both experienced 11 per cent YoY growth in equity lending revenue.
The top five earning securities in November were VMware Inc. (VMW US), Sirius XM Holdings Inc. (SIRI US), Cassava Sciences Inc. (SAVA US), Lucid Group Inc. (LCID US), and CAVA Group (CAVA US).
The five securities in total generated more than US$113 million in revenue for the month.
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