Global securities lending revenue increases 24% YoY for July, says DataLend
03 August 2022 Global
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The global securities finance industry generated US$939 million in revenue for lenders in July 2022, a 24 per cent increase on July 2021, according to DataLend.
Compared to the previous month, the July 2022 figures represent a 5 per cent increase from the US$897 million generated in June 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$262 million in revenue in July, a 34 per cent rise from 2021.
According to DataLend, the increase in lender-to-broker revenue over 2021 was driven primarily by North American equities, where average fees increased by 57 per cent, resulting in a 51 per cent increase in revenue generated.
In the Asia Pacific region, equities saw a decline in revenue of 15 per cent due to a decrease in average fee of 12 per cent.
Europe, Middle East and Africa equities remained relatively flat year-over-year with a 1 per cent increase in revenue over 2021.
The market data service of fintech EquiLend also reveals fixed income markets experienced revenue increases across both government debt, up 4 per cent, and corporate debt, up 88 per cent, compared to July 2021.
The rise in corporate debt revenue was driven primarily by average fees rising by 74 per cent.
The top five earners in July 2022 were Gamestop Corporation (GME), Beyond Meat (BYND), Lucid Group (LCID), Faraday Future (FFIE) and Dutch Bros (BROS). The five securities in total generated over US$154 million in revenue in the month.
Compared to the previous month, the July 2022 figures represent a 5 per cent increase from the US$897 million generated in June 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$262 million in revenue in July, a 34 per cent rise from 2021.
According to DataLend, the increase in lender-to-broker revenue over 2021 was driven primarily by North American equities, where average fees increased by 57 per cent, resulting in a 51 per cent increase in revenue generated.
In the Asia Pacific region, equities saw a decline in revenue of 15 per cent due to a decrease in average fee of 12 per cent.
Europe, Middle East and Africa equities remained relatively flat year-over-year with a 1 per cent increase in revenue over 2021.
The market data service of fintech EquiLend also reveals fixed income markets experienced revenue increases across both government debt, up 4 per cent, and corporate debt, up 88 per cent, compared to July 2021.
The rise in corporate debt revenue was driven primarily by average fees rising by 74 per cent.
The top five earners in July 2022 were Gamestop Corporation (GME), Beyond Meat (BYND), Lucid Group (LCID), Faraday Future (FFIE) and Dutch Bros (BROS). The five securities in total generated over US$154 million in revenue in the month.
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