DataLend: $787 Million in Securities Lending Revenue in November 2021
December 1, 2021
The global securities finance industry generated $787 million in revenue for lenders in November 2021, according to DataLend, the market data division of fintech EquiLend.
The figure represents a 4% decrease from the $821 million generated for lenders in October 2021. There was a 29% increase year over year from the $609 million generated in November 2020.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $229 million in revenue in November 2021, an 18% increase from 2020.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by Asian equities, where the average on-loan balance increased by 14% and the average fee increased by 50%. North American fixed income also played a role in the year-over-year increase, with the average on-loan balance and fee increasing by 24% and 23%, respectively.
In the fixed income lending market, global revenue generated from government debt saw a 42% increase, while corporate debt saw an increase of 104% year over year. The increase was primarily driven by on-loan values for corporate debt rising by 47% and government debt rising by 23%.
The top five earners in November 2021 were Bakkt Holdings (BKKT), Robinhood Markets (HOOD), Ginkgo Bioworks (DNA), Microvast (MVST) and Bit Digital (BTBT). The five securities in total generated over $90 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 61,000 unique securities in the $2.7 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