DataLend: Securities Lending Revenue Down 6% Year-Over-Year to $2.49 Billion in Q3 2024

NEW YORK (October 2, 2024)—The global securities finance industry generated $2.49 billion in revenue for lenders in the third quarter of 2024, according to DataLend, the market data service of fintech EquiLend. The figure represents a 6% decrease from the $2.65 billion generated in Q3 2023.

Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, generated an additional $653 million in revenue during Q3, a 4% decrease year-over-year.

Regionally, equity revenue fell 11% in North America, 6% in APAC and 5% in EMEA compared to the same period last year. A decline in average fees was the primary driver across regions, with a 17% dip in U.S. equity fees representing the most impactful shift.

Global fixed income lending revenue increased by 2% in Q3 year-over-year. The improvement was driven by a 14% increase in sovereign debt lending performance, with U.S. debt lending revenue climbing 11% on the back of increased balances. Fixed income fees declined across the board as the U.S. Federal Reserve shifted into a rate cutting cycle in September.

In September 2024, the global securities finance industry generated $817 million in revenue for lenders. The figure represents a 7% increase year-over-year from the $767 million generated in September 2023. The increase was largely driven by increased lending revenue for U.S. securities, with equities improving 21% and government debt rising 24% over 2023.

Broker-to-broker activity totaled an additional $213 million in revenue in September, a 4% increase year-over-year.

The top five earners in September 2024 were Sirius XM Holdings (SIRI US), U.S. Treasury Bond 4.125% 15/08/44 (US912810UD80), Tempus AI Inc. (TEM US), Cassava Sciences Inc. (SAVA US) and Beyond Meat Inc. (BYND US). In total, the group generated $77 million in revenue in the month.

Bloomberg Terminal users can subscribe to EquiLend’s exclusive Orbisa short interest indicators and financing data by entering terminal shortcut APPS ORBISA <GO> or clicking the following link: https://blinks.bloomberg.com/screens/apps%20orbisa.