DataLend: $756 million in Securities Lending Revenue in July 2021

The global securities finance industry generated $756 million in revenue for lenders in July 2021, according to DataLend, the market data division of fintech EquiLend.

The figure represents a 12% decrease from the $859 million generated for lenders in June 2021. There was an 8% increase year over year from the $702 million generated in July 2020.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $196 million in revenue in July.

According to DataLend, the increase in lender-to-broker revenue over 2020 was driven primarily by Asian equities, up 46%, where the average fee increased from 80 to 119 bps despite on-loan values decreasing by 11%. This increase offset a year-over-year decrease of 37% in EMEA, which was driven by a drop in both fees and on-loan balances.

For fixed income securities, global revenue generated from government debt saw a 25% increase, while corporate debt saw an increase of 33% year over year..

The top five earners in July 2021 were Coupang Inc (CPNG), Curevac (CVAC), Didi Global (DIDI), iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and VMware (VMW). The five securities in total generated over $58 million in revenue in the month.