DataLend: November 2022 Securities Lending Revenue Up 3% YoY to $811 Million
Strong Performance in EMEA Equities, Global Fixed Income Drove Turnaround From October Revenue Decline
AMC, Sirius XM and Lucid Among Month’s Top-Earning Stocks in Lending Market
December 5, 2022
NEW YORK (Dec. 5, 2022)—The global securities finance industry generated $811 million in revenue for lenders in November 2022, according to DataLend, the market data service of fintech EquiLend. The figure represents a 3% increase year-over-year from the $787 million generated in November 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $210 million in revenue in November, a 9% decrease from November 2021.
According to DataLend, the improvement in lender-to-broker revenue over 2021 was driven primarily by a strong performance in EMEA, which saw a 27% increase in total revenue. Looking more specifically at equities, a 23% spike in on-loan balances drove revenue up by 25%.
Global fixed income performance was also strong, where government debt revenue grew 9% and corporate debt revenue climbed 67%. Both increases were driven by higher average fees of 10% and 75%, respectively.
In North America, equities saw a decline in revenue of 4% due to a decrease in on-loan balances of 5%. Asian equities also saw a decline in revenue of 16% driven by a decrease in average fees of 14% over 2021.
Month over month, the $811 million in revenue generated for lenders in November represents a 4% increase from the $781 million generated for lenders in October 2022.
The top five earners in November 2022 were AMC Entertainment Holdings (AMC), MicroStrategy (MSTR), ASML Holdings N.V. (ASML), Sirius XM Holdings (SIRI), and Lucid Group (LCID). The five securities in total generated nearly $73 million in revenue in the month.
DataLend, the market data service within EquiLend’s Data & Analytics Solutions group, tracks daily market movements across more than 62,000 unique securities in the $2.5 trillion securities finance market. www.datalend.com
EquiLend is a global financial technology, data and analytics firm offering Trading, Post-Trade, Data & Analytics, RegTech and Securities Finance Platform Solutions for the securities finance industry. EquiLend has offices in New York, New Jersey, Boston, Toronto, London, Dublin, India, Hong Kong and Tokyo and is regulated in jurisdictions around the globe. www.equilend.com