DataLend: May 2024 Securities Lending Revenue Down 16% YoY to $895 Million
NEW YORK (June 5, 2024)—The global securities finance industry generated $895 million in revenue for lenders in May 2024, according to DataLend, the market data service of fintech Equilend. The figure represents a 16% decrease from the $1.06 billion generated in May 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $247 million in revenue in May, down 3% year-over-year.
Themes from April continued into May with global equity lending revenue declining due to slower United States and EMEA markets. U.S. equity revenue fell 18% year-over-year due to a 23% dip in fees. In EMEA, equity revenues experienced a stark 38% downturn as fees dropped 32% year-over-year.
APAC equities were a bright spot in May with a 16% revenue increase on the back of a 20% improvement in fees. In the region, Taiwan (+69%), Hong Kong (+26%) and Japan (+20%) continued to drive strong performance. In Taiwan, a 61% increase in balances led to the boon, while in Japan and Hong Kong, fees (+43% and +19% respectively) were the driver for revenue.
Global fixed income revenue declined 13% year-over-year with government debt performance largely flat and a 35% drop in corporate debt revenue. Corporate debt revenues declined across ratings buckets, with investment-grade performance down 22% and high-yield revenues falling 10%. The average fee for corporate bonds fell 39% globally, the primary driver for the overall decrease in revenue.
The top five earning securities in May were Lucid Group Inc. (LCID US), Trump Media & Technology Group (DJT US), Beyond Meat Inc. (BYND US), ImmunityBio Inc. (IBRX US) and Enbridge Inc. NPV (ENB CN). The five securities in total generated $75 million in revenue for the month.
Bloomberg Terminal users can subscribe to Equilend’s exclusive Orbisa securities lending data by entering terminal shortcut APPS ORBISA
About DataLend
DataLend, the market data service within Equilend’s Data & Analytics Solutions group, tracks daily market movements across more than 200,000 securities, covering $35 trillion in lendable assets and $2.6 trillion in on-loan assets for the securities finance market.
www.datalend.com
About Equilend
Equilend is a global financial technology firm offering Trading, Post-Trade, Data & Analytics, RegTech and Platform Solutions for the securities finance industry. Equilend has offices in North America, EMEA and Asia-Pacific and is regulated in jurisdictions around the globe. The company is Great Place to Work Certified™ in the U.S., UK, Ireland and India and was named Best Post-Trade Service Provider Globally, Best Market Data Provider Globally and awarded for its Diversity & Inclusion in the Securities Finance Times Industry Excellence Awards 2023. www.equilend.com
Christopher Gohlke
Director
Marketing & Communications, Equilend
+1 (332) 228-1317
christopher.gohlke@equilend.com
