The global securities finance industry experienced a decrease in lending revenue in 2024, according to DataLend, a market data service of fintech company EquiLend. The industry's revenue for lenders reached $9.64 billion, marking a 10.3% decline from the $10.74 billion recorded in 2023.
Broker-to-broker activity generated an additional $2.57 billion in revenue during 2024, representing a 9.9% decrease compared to the previous year.
Equity lending revenues saw a global drop of 13%, with North America experiencing a 15% decline and EMEA seeing a more significant reduction of 24%. In North America, this decline was attributed to a 19% decrease in average fees. In contrast, EMEA faced decreases in both fees and balances by 16% and 11%, respectively. Meanwhile, equity lending revenues in the APAC region remained largely unchanged from the previous year.
In contrast to equities, global sovereign debt revenue rose by 8% over the past year. U.S. treasuries contributed significantly to this increase with a growth of 16%, driven by a balance growth of 14%.
Corporate debt lending faced challenges as well, with global revenue falling by 21%, continuing its regression from record levels seen in 2023. A substantial drop of 29% in fees was identified as the primary factor for this decline.
The top five earning securities for lenders in 2024 were Sirius XM Holdings (SIRI US), Lucid Group (LCID US), Beyond Meat Inc. (BYND US), Tempus AI Inc. (TEM US), and Trump Media & Technology Group (DJT US). Together, these securities generated $644 million over the year, significantly lower than the $1.11 billion produced by the top earners of the previous year.
For Bloomberg Terminal users interested in EquiLend's exclusive Orbisa securities lending data, it can be accessed using terminal shortcut APPS ORBISA or via this link: https://blinks.bloomberg.com/screens/apps%20orbisa.
DataLend is part of EquiLend's Data & Analytics Solutions group and provides tracking on daily market movements across over 200,000 securities covering $35 trillion in lendable assets and $2.6 trillion in on-loan assets within the securities finance market.