The global securities finance industry generated $773 million in revenue for lenders in January 2025, according to DataLend, the market data service of fintech EquiLend. The figure represents a 6% increase from the $694 million generated in January 2024.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $207 million in revenue in January, up 10% year-over-year.
Global equity revenue observed a slight uptick of 1% as an increase in balances of 11% offset a 5% decrease in fees. With major U.S. equity indices reaching all-time highs toward the end of January, lending revenue for U.S. stocks fell significantly by 9%, with average fees declining 20% vs. January 2024.
Equity lending revenue in EMEA and APAC saw substantial gains of 15% and 22% respectively year-over-year. The United Kingdom and France led EMEA, with the former gaining 44% and latter gaining 21% year-over-year.
While U.K. indices have made gains over the past month, global trade wars continue to raise uncertainty around the January market highs, while France continues to face political turmoil as its 2025 budget plan lacks bipartisan support.
In APAC, Taiwan and Hong Kong markets carried their Q4 2024 momentum into January with increases in equity lending revenue of 45% and 71%, respectively. The AI-driven need for processors continues to drive lending revenue in Taiwan, while borrow demand for Hong Kong’s top earners, livestreaming e-commerce-focused East Buy Holdings (1797 HK) and real estate developer Sunac China (1918 HK), remains high.
Sovereign debt continued its strong performance from December with global government debt lending revenue increasing 21% on the back of a 20% increase in balances. U.S. government debt remained the biggest factor in the market with more than $889 billion in on-loan securities generating 24% more revenue year-over-year.
Corporate debt lending saw considerable annual gains as well, with revenue increasing 8% globally. Fees for corporate bonds fell 15% year-over-year, but revenue increased due to a 26% jump in balances.
The top five earning securities in December were Quantum Computing (QUBT US), Endeavor Group Holdings (EDR US), Nano Nuclear Energy (NNE US), Bank of Nova Scotia (BNS CN) and Rigetti Computing (RGTI US). The five securities in total generated $35 million in revenue for lenders in the month.
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