DataLend: October 2022 Securities Lending Revenue Down 5% YoY to $781 Million

NEW YORK (Nov. 3, 2022)—The global securities finance industry generated $781 million in revenue for lenders in October 2022, according to DataLend, the market data service of fintech EquiLend. The figure represents a 5% decrease year-over–year from the $821 million generated in October 2021.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $217 million in revenue in October, a 3% decrease from October 2021.

According to DataLend, the decrease in lender-to-broker revenue over 2021 was driven primarily by Asian equities, where average fees decreased by 14%, resulting in an 18% decrease in revenue generated in the region.  

In North America, equities saw a decline in revenue of 8% due to a decrease in average fees of 6%. EMEA equities also saw a decline in revenue of 16% driven by a decrease in average fees of 26% over 2021.

For fixed income securities, global revenue generated from government debt saw an11% increase, while corporate debt increased 64%. Both increases in revenue were driven by rises in the average fees of 19% and 76%, respectively.

Month over month, the $781 million in revenue generated for lenders in October represents a 4% decrease from the $814 million generated for lenders in September2022.

The top five earners in October 2022 were MicroStrategy (MSTR), Cassava Science (SAVA), Sirius XM Holdings (SIRI), Lucid Group (LCID), and AMC Entertainment Holdings (AMC). The five securities in total generated over $60 million in revenue in the month.  3