Securities lending revenues declined by 11 per cent year-on-year (YoY) to US$962 million in June, according to data from S&P Global Market Intelligence.
There was a 33 per cent drop YoY in EMEA equities to US$88 million, while Asian equities saw a YoY increase of 5 per cent to US$188 million.
Fixed income revenues declined by 1 per cent YoY across government bonds to US$159, and 19 per cent across corporate bonds to US$77 million.
On the other hand, balances increased throughout the month, by 5 per cent YoY.
Similarly, ETFs experienced a strong month, generating revenues of US$57 million, a 26 per cent jump YoY, as both balances and average fees increased.
Completing another quarter, the total revenues were US$3,068 million in Q2, which represents a 15% decline YoY.
During the first half of the year meanwhile, the securities lending market generated US$5,816 million, 11 per cent lower YoY.
Commenting on the figures, Matt Chessum, director of securities finance at S&P Global Market Intelligence, says: “At first glance, looking at these revenues, it may appear that the securities lending market was sluggish during both the second quarter and the first half of 2024. This is far from the case as the market has been very active.
He explains that although the numbers have reduced, both demand and revenues remain “robust” in the context of equity market moves during H1 and a longer, multi-year period.
He adds: “As volatility starts to re-enter both the bond and equity markets as a result of geopolitical events, there is still a lot to play for in the coming months, and I believe that we will see the revenue gap start to close on 2023 during the second half of the year.”
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