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Global Securities Lending Revenue Falls in 2024

According to a recent report by DataLend, the global securities finance industry generated approximately $9.64 billion in revenue in 2024. This figure marks a decline of 10.3% from the previous year's $10.74 billion. The financial landscape of securities lending has been considerably affected, with various factors contributing to this downturn.

Market Dynamics

One of the critical aspects influencing this decrease is the decline in broker-to-broker activity. This segment, where broker-dealers engage in lending and borrowing securities among themselves, contributed an added $2.57 billion in 2024. However, this represents a 9.9% fall from the earnings recorded in 2023.

Sector-Specific Performance

Equity lending has witnessed a significant slump, with global revenues falling by 13%. North America exhibited particularly steep declines, with a 15% drop in revenues due to a 19% fall in average fees. Similarly, the EMEA (Europe, the Middle East, and Africa) region experienced a 24% decrease in revenues, driven by a combination of 16% drop in fees and an 11% reduction in balances. In contrast, the Asia-Pacific (APAC) region's equity lending revenues remained relatively stable year-over-year, which is a noteworthy divergence.

On the bright side, revenues from global sovereign debt increased by 8%, largely due to U.S. treasuries, which saw a 16% rise driven by a 14% growth in balances. Meanwhile, corporate debt lending faced a sharp 21% decline; a reflection of the market's regression from the record numbers observed in 2023, where fees experienced a considerable 29% reduction.

Top Performers in Securities Lending

An analysis of the top securities contributing to the lending market revealed that five companies generated a total of $644 million throughout 2024, down from $1.11 billion earned by the top five in 2023. The leading securities included well-known names like Sirius XM Holdings, Lucid Group, Beyond Meat Inc., Tempus AI Inc., and Trump Media Technology Group.

Future Outlook

As the securities lending market navigates through a period of decline, the focus will be on how firms adapt to changing dynamics in fees, balances, and market demand. The 2024 figures highlight a compelling narrative—while the securities lending revenue retreated amidst record-high market indices, the industry must find strategies to stabilize and grow

DataLend, the service arm of EquiLend, continues to monitor and report on these shifts within the financial landscape, offering insights into the current standing of the securities finance market. Their extensive tracking is pivotal for understanding trends in lending practices and market behaviors.

For further information, users can access the exclusive data available through the Bloomberg Terminal by using the shortcut for EquiLend’s Orbisa securities lending data.

About DataLend and EquiLend

DataLend is part of EquiLend's Data Analytics Solutions group, tracking daily market movements across over 200,000 securities, with $35 trillion in lendable assets. EquiLend stands as a global fintech leader providing comprehensive services for the securities finance industry, operating offices across North America, EMEA, and Asia-Pacific.