Global securities finance revenue drops 4% YoY for October, reports DataLend
02 November 2023 US
Image: Mongkol/stock.adobe.com
Activity in the global securities finance industry has fallen 4 per cent year-on-year, generating US$751 million in revenue for lenders in October 2023, according to DataLend.
The 4 per cent decrease comes as a result of a mixed performance across both regions and asset classes.
Month-over-month, this revenue figure for lenders declined 2 per cent from the US$767 million generated in September 2023.
The market data service of fintech EquiLend says global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — remained ‘roughly flat’ YoY, totalling an additional US$217 million for October.
However, revenues generated from equity lending for the EMEA region contracted 33 per cent YoY for October, with loan balances falling 32 per cent YoY.
In the fixed income lending market, revenue from sovereign debt lending fell by 12 per cent overall, with US (-8 per cent), Canadian (-11 per cent) and UK (-38 per cent) issued bonds all falling behind their 2022 marks.
The APAC equity lending market continues to be a bright spot, says DataLend, with a 33 per cent increase in revenue YoY for October. A combination of a 22 per cent increase in fees and a 10 per cent rise in balances has powered these to annual gains.
The top five earning securities in October were Sirius XM Holdings Inc. (SIRI US), Fisker Inc. (FSKR US), Ecopro Co Ltd (086520 KS), iShares iBoxx Trust Investment Grade Corporate Bond ETF (LQD US) and Lucid Group Inc. (LCID US). The five securities in total generated US$56 million in revenue for the month.
The 4 per cent decrease comes as a result of a mixed performance across both regions and asset classes.
Month-over-month, this revenue figure for lenders declined 2 per cent from the US$767 million generated in September 2023.
The market data service of fintech EquiLend says global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — remained ‘roughly flat’ YoY, totalling an additional US$217 million for October.
However, revenues generated from equity lending for the EMEA region contracted 33 per cent YoY for October, with loan balances falling 32 per cent YoY.
In the fixed income lending market, revenue from sovereign debt lending fell by 12 per cent overall, with US (-8 per cent), Canadian (-11 per cent) and UK (-38 per cent) issued bonds all falling behind their 2022 marks.
The APAC equity lending market continues to be a bright spot, says DataLend, with a 33 per cent increase in revenue YoY for October. A combination of a 22 per cent increase in fees and a 10 per cent rise in balances has powered these to annual gains.
The top five earning securities in October were Sirius XM Holdings Inc. (SIRI US), Fisker Inc. (FSKR US), Ecopro Co Ltd (086520 KS), iShares iBoxx Trust Investment Grade Corporate Bond ETF (LQD US) and Lucid Group Inc. (LCID US). The five securities in total generated US$56 million in revenue for the month.
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