Asia strong as global securities finance revenues dip
14 February 2022 Global
Image: AdobeStock/TK_sukrit
Global securities finance revenues fell by 15 per cent YoY during January to US$836 million, with global equity financing revenues recording their lowest monthly figure since February 2021 according to recently published data from IHS Markit.
This decline can be attributed particularly to tighter equity spreads for EMEA and the Americas.
Rising borrower demand evidenced last year for exchanged-traded products, corporate bonds and American Depositary Receipts has reversed, with ADR revenues dropping 58 per cent YoY. Americas equity revenues for January fell 44 per cent YoY to US$269 million and EMEA equity revenues contracted by 29 per cent to US$80 million.
The APAC region continues to deliver the highest average fees globally at 99 per cent, with Malaysia, South Korea and Taiwan heading the region with average fee rates of 4.79 per cent, 2.48 per cent and 2.47 per cent respectively.
APAC equity finance revenues rose 37 per cent YoY during January to US$175 million 鈥� with Taiwan (US$49 million, up 178 per cent YoY) and South Korea (US$35 million, up 324 per cent YoY) delivering the largest contribution.
Australia also saw its equity finance revenues rise, up 160 per cent YoY to US$21 million.
Revenue from US equities finance fell to US$244 million in January, a decline of 46 per cent YoY from January 2021 when the markets were benefiting from the tailwind provided by new SPAC deals and trading related to the retail short squeeze. Average fees improved slightly for Americas equity month-on-month, up 12 per cent for January, but were down 50 per cent YoY.
This decline can be attributed particularly to tighter equity spreads for EMEA and the Americas.
Rising borrower demand evidenced last year for exchanged-traded products, corporate bonds and American Depositary Receipts has reversed, with ADR revenues dropping 58 per cent YoY. Americas equity revenues for January fell 44 per cent YoY to US$269 million and EMEA equity revenues contracted by 29 per cent to US$80 million.
The APAC region continues to deliver the highest average fees globally at 99 per cent, with Malaysia, South Korea and Taiwan heading the region with average fee rates of 4.79 per cent, 2.48 per cent and 2.47 per cent respectively.
APAC equity finance revenues rose 37 per cent YoY during January to US$175 million 鈥� with Taiwan (US$49 million, up 178 per cent YoY) and South Korea (US$35 million, up 324 per cent YoY) delivering the largest contribution.
Australia also saw its equity finance revenues rise, up 160 per cent YoY to US$21 million.
Revenue from US equities finance fell to US$244 million in January, a decline of 46 per cent YoY from January 2021 when the markets were benefiting from the tailwind provided by new SPAC deals and trading related to the retail short squeeze. Average fees improved slightly for Americas equity month-on-month, up 12 per cent for January, but were down 50 per cent YoY.
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