DataLend: August 2021 Securities Lending Revenue Up 51% YoY to $796 million
September 1, 2021
The global securities finance industry generated $796 million in revenue for lenders in August 2021, according to DataLend, the market data division of fintech EquiLend.
The figure represents a 5% increase from the $756 million generated for lenders in July 2021. There was a 51% increase year over year from the $527 million generated in August 2020.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $211 million in revenue in August, a 19% increase from 2020.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by an increase in fees and balances in global equities, with an exchange offer in EMEA and several high-profile 2021 IPOs and SPAC mergers still trading hot. The average fee for global equities increased by over 20 basis points (bps) to 74 bps, while the average on-loan value increased by 16% compared to the prior year.
For fixed income securities, global revenue generated from government debt saw a 21% increase, while corporate debt increased 44%. Both increases in revenue were driven by rises in the average on-loan value of 21% and 40% respectively.
The top five earners in August 2021 were Naspers N (NPN SJ), Lucid group (LCID), Coupang (CPNG), Robinhood Markets (HOOD) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The five securities in total generated over $148 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