The global securities finance industry generated $779 million in revenue for lenders in November 2024, according to DataLend, the market data service of fintech EquiLend. The figure represents a slight 0.3% decrease from the $781 million generated in November 2023.
Global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, totaled an additional $208 million in revenue in October, down 3% year-over-year.
Equity revenue declined globally by 6% due to a 14% drop in fees year-over-year. With U.S. equity indexes soaring to record-highs following the presidential election, lending revenue for U.S. stocks fell a substantial 12%, with average fees declining 25% vs. November 2023.
Equity revenue in EMEA and APAC saw moderate gains of 6% and 2% respectively year-over-year. The Taiwan and Hong Kong markets were bright spots, with the former capturing 30% in annual gains and the latter climbing 26%.
Sovereign debt continued its strong performance from October with global government debt lending revenue increasing 23% on the back of a 20% increase in balances and a 3% increase in fees. U.S. government debt remained the biggest factor in the market with over $875 billion in on-loan securities generating 36% more revenue year-over-year.
Corporate debt lending saw more modest annual gains, with revenue increasing 5% globally. Fees for corporate bonds fell 15% year-over-year, but revenue increased due to a 23% jump in balances.
The top five earning securities in November were Tempus AI Inc. (TEM US), Spirit Airlines Inc. (SAVE US), Enbridge Inc. (ENB CN), iShares iBoxx $ Inv Grade Corporate Bond ETF (LQD US) and Trump Media and Technology Corp. (DJT US). The five securities in total generated $61 million in revenue for the month.
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