DataLend: Securities Lending Markets Up 21% in 2021, Generating $9.28 Billion in Revenue
January 4, 2022
NEW YORK (Jan. 4, 2022) — The global securities lending industry generated $9.28 billion in revenue for lenders in 2021, according to DataLend, the market data division of fintech EquiLend.
The figure represents a 21.2% increase from the $7.66 billion generated for lenders in 2020 and a 7.2% increase over the $8.66 billion in 2019. Last year was the highest year for lending revenue since 2018, which had just under $10 billion in revenue.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $2.82 billion in revenue in 2021, a 1.7% decrease year over year.
Securities lending revenue is calculated as the amount paid by borrowers, typically broker-dealers on behalf of their hedge fund clients, to temporarily borrow equity and fixed income securities from long-holders of these assets, known as beneficial owners.
According to DataLend, the increase in lender-to-broker revenue was experienced across equity markets globally: Americas (+22.3%), EMEA (+1%) and APAC (+29.7%). Fixed income markets also experienced notable increases with lending revenue from corporate debt up 36.4% and government debt up 27.9% relative to 2020.
The top five revenue-generating securities in the global securities lending markets in 2021 were Robinhood Markets (HOOD), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), Blink Charging (BLNK), VMware (VMW) and Visa (V), which together generated $413 million in lending revenue in 2021.
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