Global securities finance revenue climbs 8.6% for 2023, reports DataLend
03 January 2024 US
Image: Mirco_Emmy/stock.adobe.com
The global securities finance industry generated US$10.7 billion in revenue for lenders in 2023, an 8.6 per cent year-on-year increase, according to market data provider DataLend.
The figure represents a “record high” for DataLend since it began recording annual revenue a decade ago and is 16 per cent up on the US$9.28 billion in revenue recorded in 2021.
Global broker-to-broker activity totalled an additional US$2.86 billion in revenue for 2023, a 4.4 per cent increase from 2022.
DataLend says the increase in lender-to-broker revenue over 2022 was driven by strong borrower demand for equities in North America and APAC, which saw a US$492 million and a US$228 million increase in revenue, respectively.
A 9.6 per cent increase in fees to borrow North American equities and an 11.3 per cent increase in on-loan value for Asian equities drove global equity lending revenue up by 8.2 per cent over 2022.
EMEA equity lending revenue fell by 8.1 per cent as a 19.3 per cent drop in loan value offset a 14.4 per cent increase in average fees to borrow.
The top five earners in 2023 were AMC Entertainment (AMC), followed by Sirius XM (SIRI), Beyond Meat Inc. (BYND), Lucid Group (LCID) and Nikola Corporation (NKLA). The five securities in total generated US$1.1 billion for lenders over 2023.
The figure represents a “record high” for DataLend since it began recording annual revenue a decade ago and is 16 per cent up on the US$9.28 billion in revenue recorded in 2021.
Global broker-to-broker activity totalled an additional US$2.86 billion in revenue for 2023, a 4.4 per cent increase from 2022.
DataLend says the increase in lender-to-broker revenue over 2022 was driven by strong borrower demand for equities in North America and APAC, which saw a US$492 million and a US$228 million increase in revenue, respectively.
A 9.6 per cent increase in fees to borrow North American equities and an 11.3 per cent increase in on-loan value for Asian equities drove global equity lending revenue up by 8.2 per cent over 2022.
EMEA equity lending revenue fell by 8.1 per cent as a 19.3 per cent drop in loan value offset a 14.4 per cent increase in average fees to borrow.
The top five earners in 2023 were AMC Entertainment (AMC), followed by Sirius XM (SIRI), Beyond Meat Inc. (BYND), Lucid Group (LCID) and Nikola Corporation (NKLA). The five securities in total generated US$1.1 billion for lenders over 2023.
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