Securities Lending Revenue Rose 32% YOY in March 2022
March Revenue Totaled $836 Million; Q1 Rose 5% YOY to $2.17 Billion
NEW YORK (APRIL 4, 2022)—The global securities finance industry generated $2.17 billion in revenue for lenders in the first quarter of 2022, according to DataLend, the market data service of fintech Equilend.
The figure represents a 5% increase from the $2.07 billion generated in Q1 2021. Revenue from equities decreased by less than 1% year over year to $1.64 billion, while fixed income securities increased by 27% over the same time frame to $534 million. The revenue increase was attributed to corporate debt, where the average on-loan balances increased by 33% and the average fee increased by 59%.
In March 2022 alone, the global securities finance industry generated $836 million in revenue for lenders. The figure represents a significant 32% increase year over year from the $632 million generated in March 2021.
According to DataLend, the year-over-year increase in lender-to-broker revenue was primarily driven by North American equities, where continued demand in SPACs, IPOs and high-yield corporate debt ETFs drove up the average fee to 61 bps, a 30% increase over March 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $251 million in revenue in March, a 1% increase from 2021.
The top five earners in March 2022 were Lucid Group (LCID), Dutch Bros (BROS), Digital World Acquisition (DWAC), iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Rivian Automotive (RIVN). The five securities in total generated over $58 million in revenue in the month.
About DataLend
DataLend, the market data service within Equilend’s Data & Analytics Division, tracks daily market movements across more than 62,000 unique securities in the $2.7 trillion securities finance market. www.datalend.com
About Equilend
Equilend is a global financial technology firm offering trading, post-trade, market data, regulatory and clearing services for the securities lending, collateral and swaps industries. www.equilend.com
Christopher Gohlke
Director
Marketing & Communications, Equilend
+1 (332) 228-1317
christopher.gohlke@equilend.com
