The global securities finance industry generated $756 million in revenue for lenders in July 2021 — a 12 per cent decrease from the $859 million generated in June 2021.
But there was an 8 per cent increase YoY from the $702 million generated in July 2020, according to EquiLend’s market data division, DataLend.
Broker-dealers lending and borrowing securities from each other boosted the total global securities finance revenue by $196 million in July.
DataLend says the increase in lender-to-broker revenue over 2020 was driven primarily by Asian equities — up 46 per cent — where the average fee increased from 80 to 119 bps, despite on-loan values decreasing by 11 per cent. This increase offset a YoY decrease of 37 per cent in Europe, Middle-East and Africa, which was driven by a drop in both fees and on-loan balances.
Fixed-income securities’ global revenue generated from government debt rose by 25 per cent, while revenue from corporate debt increased 33 per cent YoY.
The top five earners in July 2021 — Coupang, Curevac, Didi Global, iShares iBoxx $ High Yield Corporate Bond ETF and VMware — generated over $58 million in revenue in the month of July.
DataLend tracks daily market movements and provides analytics across more than 59,000 unique securities in the $2.6 trillion securities finance market.
