The global securities finance industry generated $787 million in revenue for lenders in November 2021, according to DataLend, the market data division of fintech EquiLend.
The figure represents a 4% decrease from the $821 million generated for lenders in October 2021. There was a 29% increase year over year from the $609 million generated in November 2020.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $229 million in revenue in November 2021, an 18% increase from 2020.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by Asian equities, where the average on-loan balance increased by 14% and the average fee increased by 50%. North American fixed income also played a role in the year-over-year increase, with the average on-loan balance and fee increasing by 24% and 23%, respectively.
In the fixed income lending market, global revenue generated from government debt saw a 42% increase, while corporate debt saw an increase of 104% year over year. The increase was primarily driven by on-loan values for corporate debt rising by 47% and government debt rising by 23%.
The top five earners in November 2021 were Bakkt Holdings (BKKT), Robinhood Markets (HOOD), Ginkgo Bioworks (DNA), Microvast (MVST) and Bit Digital (BTBT). The five securities in total generated over $90 million in revenue in the month.