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$9.3bn in FY 2020 securities finance revenue, 7% YoY
decline
Americas equities, ETFs & Government debt post YoY revenue
growth
December 2nd most revenue generating month of 2020
Global securities finance revenue $9.3bn for 2020, a 7% YoY
decline. The primary growth drivers for equities were increased
borrow demand during the Q1 market decline followed by borrow
demand tied to capital raising during the recovery. Peak monthly
revenue for 2020 was observed in
June, when a trio of US equities delivered outstanding lending
returns on the back of corporate action related arbitrage
opportunities. A most welcome end to 2020 was made by December
notching the 2nd most monthly revenue at just over $900m, an
increase of 12% YoY. Lendable assets reached a new all-time in
December, nearly $30T, adding to the challenge of increasing
utilization going forward, however a similar statement could have
been made at lower levels entering 2020 before the surge in
utilization during the Q1 decline. Many of the drivers of the
revenue upswing in Q4 remain in place heading into 2021, including
increased traditional and SPAC IPOs, public short seller campaigns
and ETF usage.
Revenue snapshots for
H1,
Q3,
October and
November are currently available. We will host 2020 review
webinars in local time zones, details to follow.
Posted 31 December 2020 by Sam Pierson, Director of Securities Finance, S&P Global Market Intelligence
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
