In 2023, the global securities finance industry, as reported by DataLend, a market data service within EquiLend, yielded £10.7 billion in revenue for lenders.
This marked a record high since DataLend began recording annual revenue a decade ago. Additionally, broker-to-broker activity contributed an extra £2.86 billion in revenue, with a 4.4% increase from the previous year.
The rise in lender-to-broker revenue was driven by strong borrower demand for equities in North America and APAC, leading to an 8.2% increase in global equity lending revenue. However, EMEA equity lending revenue fell by 8.1%. Notably, corporate debt lending revenue saw a breakout year with a 31% increase.
Government debt lending revenue had a more modest increase of just under 1%. The top five securities earning lenders the most revenue in 2023 were AMC Entertainment, Sirius XM, Beyond Meat Inc., Lucid Group, and Nikola Corporation, generating a significant increase compared to the previous year.