DataLend: Global securities lending revenue up 6% YoY for February
05 February 2025 Global
Image: Wimon/stock.adobe.com
Global securities finance revenue for lenders increased by 6 per cent year-over-year (YoY) for February, generating US$703 million, says DataLend.
The market data service of EquiLend also reports that global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — was up 7 per cent YoY for the month, totalling an additional US$193 million in revenue.
In its monthly review, DataLend notes that global equity revenue improved by 4 per cent as an increase in balances of 17 per cent offset a 9 per cent decrease in fees.
Despite an increase in market volatility through rising inflation, global trade tensions and declines in the US technology sector, lending revenue for US stocks continued to fall by 13 per cent, with average fees declining 22 per cent YoY.
Equity lending revenue in EMEA and APAC saw YoY gains of 17 per cent and 39 per cent respectively.
The UK led EMEA with a 48 per cent YoY gain, driven by a 46 per cent increase in balances as the FTSE 100 reached record levels.
In APAC, Taiwan and Hong Kong securities lending markets outperformed YoY, with revenue gains of 72 per cent and 69 per cent, respectively.
While both markets cooled compared to January, the Japanese lending market saw an improvement.
Average fees for Japanese equities increased by 13 per cent, and balances rose by 12 per cent, resulting in a 22 per cent gain in lending revenue.
The top two earners in APAC were both Japanese equities, earning just under US$6 million total — Bitcoin acquirer and manager Metaplanet and semiconductor manufacturer Kioxia Holdings.
Global fixed income revenue increased 13 per cent YoY as government debt lending performance improved by 16 per cent and corporate debt revenue by 6 per cent.
While the average fees for both government and corporate debt fell by similar margins, 3 per cent and 4 per cent respectively, the volume of bonds on loan increased by 23 per cent and 29 per cent YoY.
The top five earning securities in February were Endeavor Group Holdings, Enbridge, iShares iBoxx High Yield, Plug Power, and Tempus AI.
The five securities in total generated US$46 million in revenue for lenders in the month.
The market data service of EquiLend also reports that global broker-to-broker activity — where broker-dealers lend and borrow securities from each other — was up 7 per cent YoY for the month, totalling an additional US$193 million in revenue.
In its monthly review, DataLend notes that global equity revenue improved by 4 per cent as an increase in balances of 17 per cent offset a 9 per cent decrease in fees.
Despite an increase in market volatility through rising inflation, global trade tensions and declines in the US technology sector, lending revenue for US stocks continued to fall by 13 per cent, with average fees declining 22 per cent YoY.
Equity lending revenue in EMEA and APAC saw YoY gains of 17 per cent and 39 per cent respectively.
The UK led EMEA with a 48 per cent YoY gain, driven by a 46 per cent increase in balances as the FTSE 100 reached record levels.
In APAC, Taiwan and Hong Kong securities lending markets outperformed YoY, with revenue gains of 72 per cent and 69 per cent, respectively.
While both markets cooled compared to January, the Japanese lending market saw an improvement.
Average fees for Japanese equities increased by 13 per cent, and balances rose by 12 per cent, resulting in a 22 per cent gain in lending revenue.
The top two earners in APAC were both Japanese equities, earning just under US$6 million total — Bitcoin acquirer and manager Metaplanet and semiconductor manufacturer Kioxia Holdings.
Global fixed income revenue increased 13 per cent YoY as government debt lending performance improved by 16 per cent and corporate debt revenue by 6 per cent.
While the average fees for both government and corporate debt fell by similar margins, 3 per cent and 4 per cent respectively, the volume of bonds on loan increased by 23 per cent and 29 per cent YoY.
The top five earning securities in February were Endeavor Group Holdings, Enbridge, iShares iBoxx High Yield, Plug Power, and Tempus AI.
The five securities in total generated US$46 million in revenue for lenders in the month.
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