Global securities lending revenue up 29% YoY for November
01 December 2021 US
Image: Fiedels/stock.adobe.com
The global securities finance industry generated US$787 million in revenue for lenders in November 2021, according to DataLend. This represented a 29 per cent increase year-on-year.
However, global lending revenue contracted four per cent from the US$821 million generated in October 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$229 million in revenue in November 2021, an 18 per cent rise from November 2020.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by Asian equities, where the average on-loan balance increased by 14 per cent and the average fee increased by 50 per cent.
North American fixed income also played a role in the YoY increase, with the average on-loan balance and fee increasing by 24 per cent and 23 per cent, respectively.
For the fixed income lending market, global revenue generated from government debt rose 42 per cent YoY, while corporate debt experienced a rise of 104 per cent YoY. This growth was driven by a 47 per cent rise in on-loan values for corporate debt and a 23 per cent increase for government debt.
The top five earners in November 2021 were Bakkt Holdings (BKKT), Robinhood Markets (HOOD), Ginkgo Bioworks (DNA), Microvast (MVST) and Bit Digital (BTBT). The five securities in total generated over US$90 million in revenue in the month.
However, global lending revenue contracted four per cent from the US$821 million generated in October 2021.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$229 million in revenue in November 2021, an 18 per cent rise from November 2020.
According to DataLend, the increase in lender-to-broker revenue over 2020 was driven by Asian equities, where the average on-loan balance increased by 14 per cent and the average fee increased by 50 per cent.
North American fixed income also played a role in the YoY increase, with the average on-loan balance and fee increasing by 24 per cent and 23 per cent, respectively.
For the fixed income lending market, global revenue generated from government debt rose 42 per cent YoY, while corporate debt experienced a rise of 104 per cent YoY. This growth was driven by a 47 per cent rise in on-loan values for corporate debt and a 23 per cent increase for government debt.
The top five earners in November 2021 were Bakkt Holdings (BKKT), Robinhood Markets (HOOD), Ginkgo Bioworks (DNA), Microvast (MVST) and Bit Digital (BTBT). The five securities in total generated over US$90 million in revenue in the month.
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