The global securities finance industry generated $4.8 billion in revenue for lenders in the first half of 2022, according to DataLend, the market data service of fintech EquiLend. The figure represents a 6% increase from the $4.5 billion generated in H1 of 2021.
Revenue generated from fixed income securities increased by 22% 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% over the same time frame to $3.7 billion due to increases in balances across Asia and EMEA.
In June alone, the global securities finance industry generated $897 million in revenue for lenders, representing a 3% decrease from $923 million in May and a 4% 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% and 12%, 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 (GME), Lucid Group (LCID), Dutch Bros (BROS), Upstart Holdings (UPST) and Beyond Meat (BYND). The five securities in total generated over $115 million in revenue in the month.