DataLend: $756 million in Securities Lending Revenue in July 2021
August 1, 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.
DataLend is the securities finance market data division of EquiLend. DataLend tracks daily market movements and provides analytics across more than 59,000 unique securities in the $2.6 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 lending, collateral and swaps industries. www.equilend.com