DataLend: securities lending revenue up 1% yoy at $2.7bn in Q3

  • Global revenue keeps pace with APAC equities heating up and US specials cooling toward the end of Q3

The global securities finance industry generated $2.65 billion in revenue for lenders in the third quarter of 2023, according to DataLend, the market data service of fintech EquiLend. The figure represents a 1% increase from the $2.63 billion generated in Q3 2022.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, generated an additional $680 million in revenue during Q3, a 6% decrease year-over-year.

Strong lending revenue in the APAC region, up 27% from Q3 2022, helped offset dips in both North America (3% decline) and EMEA (12% decline) in the quarter.

While global equity performance ticked down 1%, fixed income securities brought in a 7% increase in revenue. This improvement was fueled by continued growth in corporate bonds, up 24% in Q3 year-over-year.

In September 2023, the global securities finance industry generated $767 million in revenue for lenders. The figure represents a 6% decrease year-over-year from the $814 million generated in September 2022. Broker-to-broker activity totaled an additional $204 million in revenue in September, a 7% decrease year-over-year.

The dip in September revenue was largely driven by a cooling US equity lending market, where fees declined 43% month-over-month and 21% year-over-year. As a result, revenue generated from U.S. specials dropped to $166 million from the $362 million generated in August.

The top five earners in September 2023 were Ecopro, Fisker, Country Garden Holdings, Sirius XM Holdings, and C3.AI. In total, the group generated $43 million in revenue in the month.


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