The global securities finance industry generated $5.8 billion in revenue for lenders in the first half of 2023, according to DataLend, the market data service of fintech EquiLend. The figure represents a 20% increase from the $4.8 billion generated in H1 of 2022.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, accounted for an additional $1.5 billion in revenue for H1 2023.
A particularly strong second quarter, which saw lenders generate $3.0 billion in revenue, drove the significantly improved H1 figures. Performance improved in both equities and fixed income across North America, EMEA and APAC. North American equities were the largest overall contributor, improving 27% over the first half of 2022.
In June, the global securities finance industry generated $888 million in revenue for lenders, representing a 16% decrease from $1.06 billion in May and a 1% decrease year-over-year. Global equity revenue fell by 5% compared to 2022, but the decrease was mostly offset by a 15% improvement in fixed income revenue. The broker-to-broker market generated an additional $232 million in revenue in June, a 12% decrease year-over-year.
The top five earners in the securities lending market in June 2023 were AMC Entertainment Holdings (AMC), C3.AI Inc. (AI), Sirius XM Holdings (SIRI), Beyond Meat Inc. (BYND) and Nikola Corporation (NKLA). The five securities in total generated nearly $90 million in revenue for the month.