The global securities finance industry generated $751 million in revenue for lenders in October 2023, according to DataLend, the market data service of fintech EquiLend. The figure represents a 4% decrease from the $781 million generated in October 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $217 million in revenue in October, roughly flat year-over-year.
Month-over-month, the $751 million in revenue generated for lenders in October declined 2% from the $767 million generated in September 2023.
Mixed performance across both regions and asset classes was responsible for the 4% dip.
On the laggard side, the EMEA equity lending market saw a 33% decrease in revenue with a 32% drop in loan balances year-over-year. In the fixed income lending market, revenue from sovereign debt lending declined by an overall 12%, with US (-8%), Canadian (-11%) and UK (-38%) issued bonds all falling behind their 2022 marks.
The APAC equity lending market continues to be a bright spot, generating 33% increased revenue year-over-year. A combination of a 22% increase in fees and a 10% increase in balances has led to annual gains.
The top five earning securities in October were Sirius XM Holdings Inc. (SIRI US), Fisker Inc. (FSKR US), Ecopro Co Ltd (086520 KS), iShares iBoxx Trust Investment Grade Corporate Bond ETF (LQD US) and Lucid Group Inc. (LCID US). The five securities in total generated $56 million in revenue for the month.