GameStop continues to prop-up global lender earnings
02 March 2021 US
Image: Matthieu
The global securities finance revenue was down by a fifth in February from the $803 million generated in January, according to DataLend.
EquiLend鈥檚 market data division published a report showing that despite the 21.4 per cent dip, the industry generated $631 million in revenue for lenders in February 2021 鈥� a 4.2 per cent year-on-year increase from $606 million.
Global lender revenue was largely driven by North American equities, which was 13.7 per cent higher than February 2020. This contrasts with the Europe, Middle East and Africa and Asia-Pacific regions, which both saw declines of 16.3 per cent and 6.7 per cent respectively in equity revenue compared to February 2020.
The top five securities 鈥� including GameStop 鈥� generated over $80.6 million in revenue in February. Others in the top five, Dupont De Nemours and International Flavors and Fragrances (IFF), provided an early boost in revenue as Dupont鈥檚 exchange offer for shares in IFF carried over into February. This corporate event meant the combined revenue generated exceeded $42.4 million.
Global broker-to-broker activity totaled an additional $283 million in revenue in February, an 8.9 per cent increase on the same month last year.
Elsewhere, global revenue generated from government debt saw a 20.7 per cent increase for fixed income securities, while revenue generated from corporate debt saw a decrease of 21 per cent despite on-loan balances increasing by 17 per cent this year.
Now read: Asia Handbook 2020
EquiLend鈥檚 market data division published a report showing that despite the 21.4 per cent dip, the industry generated $631 million in revenue for lenders in February 2021 鈥� a 4.2 per cent year-on-year increase from $606 million.
Global lender revenue was largely driven by North American equities, which was 13.7 per cent higher than February 2020. This contrasts with the Europe, Middle East and Africa and Asia-Pacific regions, which both saw declines of 16.3 per cent and 6.7 per cent respectively in equity revenue compared to February 2020.
The top five securities 鈥� including GameStop 鈥� generated over $80.6 million in revenue in February. Others in the top five, Dupont De Nemours and International Flavors and Fragrances (IFF), provided an early boost in revenue as Dupont鈥檚 exchange offer for shares in IFF carried over into February. This corporate event meant the combined revenue generated exceeded $42.4 million.
Global broker-to-broker activity totaled an additional $283 million in revenue in February, an 8.9 per cent increase on the same month last year.
Elsewhere, global revenue generated from government debt saw a 20.7 per cent increase for fixed income securities, while revenue generated from corporate debt saw a decrease of 21 per cent despite on-loan balances increasing by 17 per cent this year.
Now read: Asia Handbook 2020
← Previous industry article
Standard Bank expands agreement with GEPF to include securities lending services
Standard Bank expands agreement with GEPF to include securities lending services
Next industry article →
Exclusive: 11th hour deal breakdown cut off KDPW clients from UK EMIR services
Exclusive: 11th hour deal breakdown cut off KDPW clients from UK EMIR services
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
