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The global securities finance industry delivered US$828 million in lending revenue in April 2022, a 20 per cent increase on April 2021, according to data from DataLend.
Month-on-month, this represents a small dip from the US$836 million in revenue for lenders generated during March 2022.
Global broker-to-broker transactions, where broker-dealers lend and borrow from each other, contributed a further US$229 million in revenue during April, a 16 per cent rise on April 2021.
The rise in lender-to-broker revenue during 2021 was powered largely by equity lending, where the average fee increased by 18 per cent, according to DataLend, the market data arm of securities finance trading, data and post-trade specialist EquiLend.
Average fee rates for North American equities rose by 39 per cent for April 2022 compared with April 2021.
The top five revenue-generating securities for April 2022 were Rivian Automotive (RIVN), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), Sweetgreen (SG), Beyond Meat (BYND) and GameStop (GME). These five securities generated more than US$53 million in lending revenue during the month.
