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.
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