DataLend: Global securities lending revenue down 10.3% YoY for 2024
03 January 2025 Global
Image: Tackey/stock.adobe.com
The global securities finance industry generated US$9.64 billion in revenue for lenders in 2024, according to DataLend.
The figure from the market data service of EquiLend represents a 10.3 per cent decrease from the US$10.74 billion generated in 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$2.57 billion in revenue for 2024, down 9.9 per cent from the previous year.
Equity lending revenues fell 13 per cent globally, with revenue for North America declining 15 per cent and EMEA dropping 24 per cent.
In North America, the cause for the revenue decline was a 19 per cent decrease in average fees, says DataLend, while in EMEA, fees and balances decreased 16 per cent and 11 per cent respectively.
Equity lending revenues in APAC were largely flat year-over-year (YoY), DataLend adds.
Global sovereign debt revenue increased by 8 per cent over 2023, with US treasuries 鈥渕aking up the lion鈥檚 share of the gains鈥�, according to the firm.
Treasuries were up 16 per cent YoY, driven by a 14 per cent growth in balances.
In corporate debt lending, global revenue declined by 21 per cent, as a regression from a record 2023 continued.
Fees were the main culprit, says DataLend, with a 29 per cent decrease driving the YoY decline in revenue.
The top five earning securities in 2024 were Sirius XM Holdings, Lucid Group, Beyond Meat, Tempus AI, and Trump Media & Technology Group.
The five securities in total generated US$644 million for lenders over the course of 2024, which is a 鈥渟ignificant dip鈥� from the US$1.11 billion generated by 2023鈥檚 top five earners.
The figure from the market data service of EquiLend represents a 10.3 per cent decrease from the US$10.74 billion generated in 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totalled an additional US$2.57 billion in revenue for 2024, down 9.9 per cent from the previous year.
Equity lending revenues fell 13 per cent globally, with revenue for North America declining 15 per cent and EMEA dropping 24 per cent.
In North America, the cause for the revenue decline was a 19 per cent decrease in average fees, says DataLend, while in EMEA, fees and balances decreased 16 per cent and 11 per cent respectively.
Equity lending revenues in APAC were largely flat year-over-year (YoY), DataLend adds.
Global sovereign debt revenue increased by 8 per cent over 2023, with US treasuries 鈥渕aking up the lion鈥檚 share of the gains鈥�, according to the firm.
Treasuries were up 16 per cent YoY, driven by a 14 per cent growth in balances.
In corporate debt lending, global revenue declined by 21 per cent, as a regression from a record 2023 continued.
Fees were the main culprit, says DataLend, with a 29 per cent decrease driving the YoY decline in revenue.
The top five earning securities in 2024 were Sirius XM Holdings, Lucid Group, Beyond Meat, Tempus AI, and Trump Media & Technology Group.
The five securities in total generated US$644 million for lenders over the course of 2024, which is a 鈥渟ignificant dip鈥� from the US$1.11 billion generated by 2023鈥檚 top five earners.
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