DataLend: $2.07 billion in Securities Lending Revenue in Q1 2021
April 1, 2021
The global securities finance industry generated $2.07 billion in revenue for lenders in the first quarter of 2021, according to DataLend, the market data division of fintech EquiLend.
The figure represents a 10% increase from the $1.88 billion generated in Q1 of 2020. Revenue from equities increased by 8% year over year to $1.65 billion due to new entrants (IPOs and SPACs) and short squeezes in January. Revenue generated from fixed income securities increased by 20% over the same time frame to $420 million.
More recently, the global securities finance industry generated $632 million in revenue for lenders in March. The figure represents a minor increase from the $631 million generated for lenders in February 2021. There was a 2% increase year over year from the $622 million generated in March 2020.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $248 million in revenue in March, an 11% increase from 2020.
According to DataLend, the 2% increase of $9.6 million in lender-to-broker revenue year over year was primarily driven by government debt, which saw an increase of 39%. Notably, the current US 10-year was one of the top five earning securities in March.
The top five earners in March 2021 were Futu Holdings Limited (FUTU), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), United States of America Treasury Notes 1.125% 15/02/31, Rocket Companies (RKT), and ChargePoint Holdings (CHPT). The five securities in total generated over $50.8 million in revenue in the month.
DataLend is the securities finance market data division of EquiLend. DataLend tracks daily market movements and provides analytics across more than 55,000 unique securities in the $2.5 trillion securities finance market. www.datalend.com
EquiLend is a global financial technology firm offering trading, post-trade, market data, regulatory and clearing services for the securities finance, collateral and swaps industries. EquiLend has offices in New York, Toronto, London, Dublin, Hong Kong and Tokyo. www.equilend.com