October 2022
We have reached a milestone! Welcome to the 10th issue of The Purple. In response to market demand, we are excited to continue to publish The Purple on a quarterly basis. In this issue, we focus on the most recent trends and delve deep into the data with a series of infographics that illustrate the global securities finance market.
As market volatility continued alongside inflation and recessionary concerns, the securities lending markets experienced revenue growth of 12% in Q3 2022 versus Q3 2021, bringing year-to-date revenue in 2022 to $7.45 billion, up 8% over the first three quarters last year. Read all about the key drivers of revenue in Q3 Insights.
We look forward to seeing you at all the upcoming industry conferences and events as we round out 2022. We are already looking forward to our next issue, where we will recap the full year 2022—which looks poised to be another strong year for our market.
Nancy Allen
Head of Data & Analytics Solutions, EquiLend
nancy.allen@equilend.com
With Q3 in our rear view, a wide variety of asset classes were in play as volatile market conditions continued and recession concerns joined inflation headlines. In this past quarter, the securities lending market generated $2.63 billion, an increase of 12% over the same period in 2021.
DataLend highlights the latest trends in securities finance in the Canada region.
DataLend highlights the latest trends in securities finance in the South Africa region.
Despite increases in average on-loan balances and average daily lendable values of 5.86% and 6.29% respectively, fixed income lender-to-broker revenue was down 4.54% in the first nine months of 2020, generating $1.08 billion in lending revenue.
At the halfway mark of 2020, securities lending revenue was up 7.7% for equities in the Americas. However, by the end of the third quarter, equity revenue in the Americas performed a 180.
We reviewed the impact of the short-selling bans in Europe and Asia and compared the quarterly and yearly revenue year over year.
Throughout the COVID pandemic, a number of industries have been roiled, from pharma, which is working to develop a vaccine, to transportation, which flatlined as the world went into lockdown.
DataLend highlights the latest trends in securities finance in the Asia region.
DataLend highlights the latest trends in securities finance in the EMEA region.
DataLend highlights the latest trends in securities finance in the Americas region.
As global equity markets continued to see large sell-offs due to COVID-19, the market uncertainty coupled with short-selling bans led to lower demand in the securities lending market.
DataLend highlights the latest trends in securities finance in the Canada region.
While the market values for many sectors have already seen drastic decreases and the economic impact of COVID-19 is only getting started, one might think that the market environment may have created shorting opportunities resulting in increased revenue.
One of the brightest spots in the securities finance market is activity related to initial public offerings (IPOs).
Funds Europe found in its recent survey of beneficial owners that these institutions view securities lending as an investment product and should in turn use independent securities lending data to optimize their programs, mitigate risk and support them in their fiduciary responsibilities.
The first half of 2019 has not been kind to the fixed income market, with total revenue down 30%.
Average duration is a measure of how long a trade is open, from the time that the security is borrowed to the time that it is returned back to the lender.
As summer 2019 drew to a close, DataLend reviewed trends that emerged throughout the season to see if the securities lending industry heated up along with the temperatures.
