The global securities finance industry generated US$4.8 billion in revenue for lenders in the first half of 2022, according to DataLend, the market data service of EquiLend.
The figure represents a 6 per cent increase from the $4.5 billion generated in H1 of 2021.
Revenue generated from fixed income securities increased by 22 per cent year-over-year to $1.1 billion, driven by a rise in fees and on-loan values in corporate debt.
Revenue from equities increased by 2 per cent over the same time frame to $3.7 billion due to increases in balances across Asia and Europe, Middle East and Africa (EMEA).
In June alone, the global securities finance industry generated $897 million in revenue for lenders, representing a 3 per cent decrease from $923 million in May and a 4 per cent increase year over year.
The year-over-year increase was primarily driven by fixed income in North America and EMEA, which saw increases of 38 per cent and 12 per cent, respectively.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $264 million in revenue in June, a slight increase year over year.
The top five earners in the securities lending market in June 2022 were Gamestop, Lucid Group, Dutch Bros, Upstart Holdings and Beyond Meat.