色花堂lending revenues up 5% YoY in December
03 January 2025 US
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色花堂lending revenues were up 5 per cent year-on-year (YoY) to US$976 million in December, according to S&P Global Market Intelligence.
The figure contributed to a total of US$2.9 billion for the fourth quarter of 2024, reflecting an 8 per cent YoY increase.
Despite this, annual revenues amounted to US$11.7 billion for securities lending, which represents a 9 per cent decline compared to the previous year.
Data from S&P Global Market Intelligence also indicates that equities demonstrated strong performance in December, generating US$690 million 鈥� a 3 per cent YoY increase.
Notably, revenues from Asian (US$183 million) and EMEA (US$66 million) equities saw positive growth compared to the previous year, while Americas (US$673 million) equities experienced a 9 per cent decline, says Matthew Chessum, director of securities finance at S&P Global Market Intelligence.
Average fees mirrored this trend, increasing in EMEA and Asia while declining in the Americas.
On the other hand, exchange traded funds (ETFs) exhibited 鈥渞emarkable鈥� growth, with revenues soaring 57 per cent YoY to US$76 million, and average fees up by 30 per cent.
Fixed income assets maintained a robust YoY revenue growth trajectory, says Chessum, with government bond revenues rising 12 per cent to US$193 million and corporate bond revenues increasing by 6 per cent to US$86 million.
Commenting on the findings, Chessum says: 鈥淒ecember's overall revenues were strong, showing a 5 per cent YoY growth. Throughout 2024, revenues were evenly distributed across quarters, with Q1 at US$2.7 billion, Q2 at US$3 billion, Q3 at US$3 billion, and Q4 at US$2.9 billion 鈥� a notable deviation from the typical trend where Q1 and Q2 yield the highest returns.鈥�
Although annual revenues decreased following a record year in 2023, he adds, they demonstrated resilience amid geopolitical uncertainties and economic fluctuations.
Total equity revenues fell 11 per cent YoY to US$8.6 billion, with the most significant decline occurring in EMEA, which saw a 27 per cent drop to US$1 billion. Conversely, government bonds emerged as the standout asset class for 2024, with revenues increasing 8 per cent YoY to US$2 billion.
The securities finance market remained robust throughout 2024, bolstered by new market access routes, enhanced liquidity pools, and increased data availability for participants.
Chessum highlights: 鈥淭he market not only surpassed US$41 trillion in lendable assets but also achieved annual revenues of US$11.7 billion, placing 2024 among the top five highest revenue-generating years since the inception of our data collection service.鈥�
The figure contributed to a total of US$2.9 billion for the fourth quarter of 2024, reflecting an 8 per cent YoY increase.
Despite this, annual revenues amounted to US$11.7 billion for securities lending, which represents a 9 per cent decline compared to the previous year.
Data from S&P Global Market Intelligence also indicates that equities demonstrated strong performance in December, generating US$690 million 鈥� a 3 per cent YoY increase.
Notably, revenues from Asian (US$183 million) and EMEA (US$66 million) equities saw positive growth compared to the previous year, while Americas (US$673 million) equities experienced a 9 per cent decline, says Matthew Chessum, director of securities finance at S&P Global Market Intelligence.
Average fees mirrored this trend, increasing in EMEA and Asia while declining in the Americas.
On the other hand, exchange traded funds (ETFs) exhibited 鈥渞emarkable鈥� growth, with revenues soaring 57 per cent YoY to US$76 million, and average fees up by 30 per cent.
Fixed income assets maintained a robust YoY revenue growth trajectory, says Chessum, with government bond revenues rising 12 per cent to US$193 million and corporate bond revenues increasing by 6 per cent to US$86 million.
Commenting on the findings, Chessum says: 鈥淒ecember's overall revenues were strong, showing a 5 per cent YoY growth. Throughout 2024, revenues were evenly distributed across quarters, with Q1 at US$2.7 billion, Q2 at US$3 billion, Q3 at US$3 billion, and Q4 at US$2.9 billion 鈥� a notable deviation from the typical trend where Q1 and Q2 yield the highest returns.鈥�
Although annual revenues decreased following a record year in 2023, he adds, they demonstrated resilience amid geopolitical uncertainties and economic fluctuations.
Total equity revenues fell 11 per cent YoY to US$8.6 billion, with the most significant decline occurring in EMEA, which saw a 27 per cent drop to US$1 billion. Conversely, government bonds emerged as the standout asset class for 2024, with revenues increasing 8 per cent YoY to US$2 billion.
The securities finance market remained robust throughout 2024, bolstered by new market access routes, enhanced liquidity pools, and increased data availability for participants.
Chessum highlights: 鈥淭he market not only surpassed US$41 trillion in lendable assets but also achieved annual revenues of US$11.7 billion, placing 2024 among the top five highest revenue-generating years since the inception of our data collection service.鈥�
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