EquiLend’s market data service DataLend reports that the global securities finance industry generated US$2.3 billion in revenue in the third quarter of 2022, a 12 per cent increase from Q3 2021.
For Q3, equities revenue increased more than 7 per cent YoY to US$2.03 billion. Declines in EMEA (36 per cent) and APAC (22 per cent) securities were offset by 17 per cent gains from North American securities.
Revenue generated from lending fixed-income securities increased 31 per cent YoY to US$598 million for Q3.
For September 2022, the industry generated US$814 million in revenue for lenders, a three per cent increase YoY on September 2021.
DataLend says that the year-on-year rise in lender-to-broker revenue during September was driven primarily by global fixed income, with average fees increasing by 38 per cent for government bonds, and 82 per cent for corporate debt.
For global broker-to-broker activity, revenue generated in September was up five per cent YoY to US$220 million.
The five top earning securities for September 2022 were 3M Company (MMM), Cassava Sciences (SAVA), Lucid Group (LCID), AMC Entertainment (AMC) and USA Treasury Notes 3.25 per cent 31 Aug 24. This is the first time a US Treasury note has been a top-five earner since March 2021. In total, these securities generated more than US$72 million in revenue over the month.
