DataLend: Global securities lending revenue up 6% YoY for January
05 February 2025 Global
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Global securities finance revenue for lenders increased by 6 per cent year-over-year (YoY) for January, generating US$773 million, says DataLend.
The market data service of EquiLend also reports that global broker-to-broker activity 鈥� where broker-dealers lend and borrow securities from each other 鈥� was up 10 per cent YoY for the month, totalling an additional US$207 million in revenue.
In its monthly review, DataLend says global equity revenue observed a slight uptick of 1 per cent, as an increase in balances of 11 per cent offset a 5 per cent decrease in fees.
With US equity indices reaching all-time highs toward the end of January, lending revenue for US stocks fell by 9 per cent, with average fees dropping 20 per cent YoY.
Equity lending revenue in EMEA and APAC saw YoY gains of 15 per cent and 22 per cent respectively.
The UK and France led EMEA, with the former gaining 44 per cent and the latter gaining 21 per cent YoY.
鈥淲hile UK indices have made gains over the past month, global trade wars continue to raise uncertainty around the January market highs,鈥� says DataLend, 鈥渨hile France continues to face political turmoil as its 2025 budget plan lacks bipartisan support.鈥�
In APAC, Taiwan and Hong Kong markets carried their Q4 2024 momentum into January 2025, with increases in equity lending revenue of 45 per cent and 71 per cent respectively.
鈥淭he AI-driven need for processors continues to drive lending revenue in Taiwan,鈥� says the firm, 鈥渨hile borrow demand for Hong Kong鈥檚 top earners, live-streaming e-commerce focused East Buy Holdings and real estate developer Sunac China, remains high.鈥�
Global government debt lending revenue increased 21 per cent YoY on the back of a 20 per cent rise in balances.
US government debt remained the biggest factor in the sovereign debt market, according to DataLend, with more than US$889 billion in on-loan securities generating 24 per cent more revenue YoY.
Corporate debt lending also saw annual gains, with revenue increasing 8 per cent globally. Fees for corporate bonds fell 15 per cent YoY, but revenue increased due to a 26 per cent jump in balances.
The top five earning securities in January were Quantum Computing, Endeavor Group Holdings, Nano Nuclear Energy, Bank of Nova Scotia, and Rigetti Computing.
The five securities generated US$35 million in total revenue for lenders in the month.
The market data service of EquiLend also reports that global broker-to-broker activity 鈥� where broker-dealers lend and borrow securities from each other 鈥� was up 10 per cent YoY for the month, totalling an additional US$207 million in revenue.
In its monthly review, DataLend says global equity revenue observed a slight uptick of 1 per cent, as an increase in balances of 11 per cent offset a 5 per cent decrease in fees.
With US equity indices reaching all-time highs toward the end of January, lending revenue for US stocks fell by 9 per cent, with average fees dropping 20 per cent YoY.
Equity lending revenue in EMEA and APAC saw YoY gains of 15 per cent and 22 per cent respectively.
The UK and France led EMEA, with the former gaining 44 per cent and the latter gaining 21 per cent YoY.
鈥淲hile UK indices have made gains over the past month, global trade wars continue to raise uncertainty around the January market highs,鈥� says DataLend, 鈥渨hile France continues to face political turmoil as its 2025 budget plan lacks bipartisan support.鈥�
In APAC, Taiwan and Hong Kong markets carried their Q4 2024 momentum into January 2025, with increases in equity lending revenue of 45 per cent and 71 per cent respectively.
鈥淭he AI-driven need for processors continues to drive lending revenue in Taiwan,鈥� says the firm, 鈥渨hile borrow demand for Hong Kong鈥檚 top earners, live-streaming e-commerce focused East Buy Holdings and real estate developer Sunac China, remains high.鈥�
Global government debt lending revenue increased 21 per cent YoY on the back of a 20 per cent rise in balances.
US government debt remained the biggest factor in the sovereign debt market, according to DataLend, with more than US$889 billion in on-loan securities generating 24 per cent more revenue YoY.
Corporate debt lending also saw annual gains, with revenue increasing 8 per cent globally. Fees for corporate bonds fell 15 per cent YoY, but revenue increased due to a 26 per cent jump in balances.
The top five earning securities in January were Quantum Computing, Endeavor Group Holdings, Nano Nuclear Energy, Bank of Nova Scotia, and Rigetti Computing.
The five securities generated US$35 million in total revenue for lenders in the month.
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