October 2, 2024
DataLend: Securities Lending Revenue Down 6% Year-Over-Year to $2.49 Billion in Q3 2024
The global securities finance industry generated $2.49 billion in revenue for lenders in the third quarter of 2024, according to DataLend, the market data service of fintech Equilend.
NEW YORK (October 2, 2024)—The global securities finance industry generated $2.49 billion in revenue for lenders in the third quarter of 2024, according to DataLend, the market data service of fintech Equilend. The figure represents a 6% decrease from the $2.65 billion generated in Q3 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, generated an additional $653 million in revenue during Q3, a 4% decrease year-over-year.
Regionally, equity revenue fell 11% in North America, 6% in APAC and 5% in EMEA compared to the same period last year. A decline in average fees was the primary driver across regions, with a 17% dip in U.S. equity fees representing the most impactful shift.
Global fixed income lending revenue increased by 2% in Q3 year-over-year. The improvement was driven by a 14% increase in sovereign debt lending performance, with U.S. debt lending revenue climbing 11% on the back of increased balances. Fixed income fees declined across the board as the U.S. Federal Reserve shifted into a rate cutting cycle in September.
In September 2024, the global securities finance industry generated $817 million in revenue for lenders. The figure represents a 7% increase year-over-year from the $767 million generated in September 2023. The increase was largely driven by increased lending revenue for U.S. securities, with equities improving 21% and government debt rising 24% over 2023.
Broker-to-broker activity totaled an additional $213 million in revenue in September, a 4% increase year-over-year.
The top five earners in September 2024 were Sirius XM Holdings (SIRI US), U.S. Treasury Bond 4.125% 15/08/44 (US912810UD80), Tempus AI Inc. (TEM US), Cassava Sciences Inc. (SAVA US) and Beyond Meat Inc. (BYND US). In total, the group generated $77 million in revenue in the month.
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Equilend Data & Analytics
Equilend Data & Analytics tracks real-time securities finance market movements across more than 210,000 securities, covering $40 trillion in lendable assets and $2.7 trillion in on-loan assets.
