Global securities finance revenues have increased 4 per cent year-on-year to US$985 million for October, according to the latest data from S&P Global Market Intelligence. However, this October revenue number marks a four per cent decline on the corresponding figure for the month of September.
S&P Global Market Intelligence reports that although average fees rose 11 per cent YoY and utilisation has grown by 12 per cent YoY, the value of on loan balances has dipped by 6 per cent relative to October 2021. Exchange-traded products have delivered strong revenue expansion year-on-year rising 45 per cent to US$79 million.
Fixed income lending also generated revenue growth relative to October 2021. Lending revenue from government bonds has increased 18 per cent YoY to US$161 billion, while revenue from corporate bonds has grown 60 per cent YoY to US$86 million. “Both asset classes are continuing their impressive year due to the hawkish monetary environment and the increased market volatility,” says S&P Global Market Intelligence.
Average fees for ETPs were up 38 per cent YoY to 90bps and for corporate bonds, average fees increased 72 per cent to 41bps. Average fees for government bond lending have increased 33 per cent year-to-date, although fees for this asset class have remained broadly unchanged month-on-month.
For American Depositary Receipts (ADRs), average fees for October were 106bps, down 24 per cent month-on-month but significantly above the 65bps average fee recorded during Q1 2022. Revenue from ADR lending during October 2022 was up 1 per cent on October 2021 to US$24 million. For equities, Americas equities were the only equity market to deliver year-on-year growth during the month of October, rising 1 per cent to US$349 million. Revenue from Asian equities was down 14 per cent YoY to US$166 million and for EMEA equities, revenue contracted 17 per cent YoY for October to US$98 million.
