The global securities finance industry generated $2.76 billion in revenue for lenders in the first quarter of 2023, according to DataLend, the market data service of fintech EquiLend. The figure represents a 27% increase from the $2.17 billion generated in Q1 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, generated an additional $758 million in revenue during Q1, a 21% increase year-over-year.
Lending revenue in AMC Entertainment Holdings, the top earner in Q1, totaled an impressive $181 million in the lender-to-broker market. By comparison, this figure dwarfed the revenue of Beyond Meat Inc, the next highest earner, which accounted for $68 million.
In March 2023 alone, the global securities finance industry generated $1.02 billion in revenue for lenders. The figure represents a 22% increase year-over-year from the $836 million generated in March 2022. Broker-to-broker activity totaled an additional $271 million in revenue in March, a 10% increase year-over-year.
According to DataLend, the continuing trends in rising lending fees contributed to the increase in lender-to-broker revenue. Globally, across all asset classes, lending fees climbed 27% year-over-year even as loan balances fell 5%.
The top five earners in March 2023 were AMC Entertainment Holdings (AMC), Beyond Meat Inc (BYND), Roche Holdings AG (ROG SW), Upstart Holdings Inc. (UPST) and Lucid Group (LCID). In total, the group generated $132 million in revenue in the month.