The global securities finance industry generated $2.63 billion in revenue for lenders in the third quarter of 2022, according to DataLend, the market data service of fintech EquiLend.
The figure represents a 12% increase from the $2.34 billion generated in Q3 2021. Revenue from equities increased by more than 7% year over year to $2.03 billion, while fixed income securities increased by 31% over the same time frame to $598 million.
In September 2022 alone, the global securities finance industry generated $814 million in revenue for lenders. The figure represents a 3% increase year over year from the $790 million generated in September 2021.
According to DataLend, the year-over-year increase in September’s lender-to-broker revenue was primarily driven by global fixed income, where the average fee increased by 38% for government-issued bonds and 82% for corporate debt. Additionally, a U.S. Treasury note was the fifth top earner for the month, which last occurred in March 2021. Meanwhile, for equities, gains from North American securities (17%) offset declines in both EMEA and APAC of 36% and 22%, respectively.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $220 million in revenue in September, a 5% increase from 2021.
The top five earners in September 2022 were 3M Company (MMM), Cassava Sciences (SAVA), Lucid Group (LCID), AMC Entertainment (AMC) and United States of America Treasury Notes 3.25% 31 Aug 24. The five securities in total generated over $72 million in revenue in the month.