DataLend: Securities Lending Revenue Rose 1% Year-Over-Year to $2.65 Billion in Q3 2023

NEW YORK (October 3, 2023)—The global securities finance industry generated $2.65 billion in revenue for lenders in the third quarter of 2023, according to DataLend, the market data service of fintech EquiLend. The figure represents a 1% increase from the $2.63 billion generated in Q3 2022.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, generated an additional $680 million in revenue during Q3, a 6% decrease year-over-year.

Strong lending revenue in the APAC region, up 27% from Q3 2022, helped offset dips in both North America (3% decline) and EMEA (12% decline) in the quarter.

While global equity performance ticked down 1%, fixed income securities brought in a 7% increase in revenue. This improvement was fueled by continued growth in corporate bonds, up 24% in Q3 year-over-year.

In September 2023, the global securities finance industry generated $767 million in revenue for lenders. The figure represents a 6% decrease year-over-year from the $814 million generated in September 2022. Broker-to-broker activity totaled an additional $204 million in revenue in September, a 7% decrease year-over-year.

The dip in September revenue was largely driven by a cooling U.S. equity lending market, where fees declined 43% month-over-month and 21% year-over-year. As a result, revenue generated from U.S. specials dropped to $166 million from the $362 million generated in August.

The top five earners in September 2023 were Ecopro Co Ltd (086520 KS), Fisker Inc. (FSKR US), Country Garden Holdings Co Ltd (2007 HK), Sirius XM Holdings Inc. (SIRI US) and C3.AI Inc. (AI US). In total, the group generated $43 million in revenue in the month.