Global securities lending revenue up 21% to $9bn

The global securities lending industry generated $9.28 billion in revenue for lenders in 2021, according to DataLend, the market data division of EquiLend.

The figure represents a 21.2% increase from the $7.66 billion generated for lenders in 2020 and a 7.2% increase over the $8.66 billion in 2019.

“The top five revenue-generating securities in the global securities lending markets in 2021 were Robinhood Markets (HOOD), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), Blink Charging (BLNK), VMware (VMW) and Visa (V), which together generated $413 million in lending revenue in 2021,” said EquiLend.

Fixed income markets also experienced notable increases with lending revenue from corporate debt up 36.4% and government debt up 27.9% relative to 2020.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $2.82 billion in revenue in 2021, a 1.7% decrease year over year.

Securities lending revenue is calculated as the amount paid by borrowers, typically broker-dealers on behalf of their hedge fund clients, to temporarily borrow equity and fixed income securities from long-holders of these assets.

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.