The global securities finance industry generated $878 million in revenue for lenders in August 2022, according to DataLend, EquiLend’s market data service. This is a 10% increase year-on-year (yoy) from $796 million, and a 6% decrease month-on-month from $939 million.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $242 million in revenue in August, a 15% increase from August 2021. The increase in lender-to-broker revenue over 2021 was driven primarily by North American equities, where average fees increased by 36%, resulting in a 36% increase in revenue generated.
In the APAC region, equities saw a decline in revenue of 21% due to a decrease in average fees of 15%. EMEA equities also saw a decline in revenue of 35% driven by a decrease in average fees of 54% over 2021.
For fixed income securities, global revenue generated from government debt saw an 11% increase, while corporate debt increased 98%. Both increases in revenue were driven by rises in the average fees of 15% and 83% respectively.
The top five earners in August 2022 were Gamestop Corporation (GME), Beyond Meat (BYND), Lucid Group (LCID), Sirius XM Holdings (SIRI) and Dutch Bros (BROS). The five securities in total generated over $117 million in revenue in the month.
Across EquiLend Trading’s NGT platform, more than 2.6 million trades were executed versus $2.45 trillion notional, representing a 12% increase over July and a 13% gain year over year, according to Mike Norwood, director and global trading product owner at EquiLend: “Volumes in the securities lending market picked up in August from the dip in July, during a relatively quiet month for the industry,” he added.