Global securities lending revenue falls 6% YoY for Q3 2024
04 October 2024 Global
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Global securities finance revenue for lenders decreased 6 per cent year-on-year (YoY) for the third quarter of 2024, generating US$2.49 million, DataLend reports.
The market data service of EquiLend reports that global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, was down 4 per cent YoY for the period, totalling an additional US$653 million in revenue.
Regionally, equity revenue fell 11 per cent in North America, 6 per cent in APAC, and 5 per cent in EMEA compared to Q3 2023.
In its quarterly review, DataLend says that a decline in average fees was the primary driver across regions, with a 17 per cent dip in US equity fees representing the most impactful shift.
On the other hand, global fixed income lending revenue increased by 2 per cent YoY in the third quarter.
The improvement was driven by a 14 per cent increase in sovereign debt lending performance, says DataLend, with US debt lending revenue climbing 11 per cent on the back of increased balances.
Fixed income fees declined across the board as the US Federal Reserve shifted into a rate-cutting cycle in September, the firm adds.
From a monthly perspective, the global securities finance revenue rose by 7 per cent YoY, generating US$817 million for lenders.
DataLend says that increased lending revenue for US securities was a large driver, with equities improving 21 per cent and government debt rising 24 per cent over 2023.
Broker-to-broker activity totalled an additional US$213 million in revenue in September, a 4 per cent increase YoY.
The top five earners in the month were Sirius XM Holdings, US Treasury Bond 4.125%, Tempus AI, Cassava Sciences, and Beyond Meat.
In total, the group generated US$77 million in revenue in September.
The market data service of EquiLend reports that global broker-to-broker activity, where broker-dealers lend and borrow securities from each other, was down 4 per cent YoY for the period, totalling an additional US$653 million in revenue.
Regionally, equity revenue fell 11 per cent in North America, 6 per cent in APAC, and 5 per cent in EMEA compared to Q3 2023.
In its quarterly review, DataLend says that a decline in average fees was the primary driver across regions, with a 17 per cent dip in US equity fees representing the most impactful shift.
On the other hand, global fixed income lending revenue increased by 2 per cent YoY in the third quarter.
The improvement was driven by a 14 per cent increase in sovereign debt lending performance, says DataLend, with US debt lending revenue climbing 11 per cent on the back of increased balances.
Fixed income fees declined across the board as the US Federal Reserve shifted into a rate-cutting cycle in September, the firm adds.
From a monthly perspective, the global securities finance revenue rose by 7 per cent YoY, generating US$817 million for lenders.
DataLend says that increased lending revenue for US securities was a large driver, with equities improving 21 per cent and government debt rising 24 per cent over 2023.
Broker-to-broker activity totalled an additional US$213 million in revenue in September, a 4 per cent increase YoY.
The top five earners in the month were Sirius XM Holdings, US Treasury Bond 4.125%, Tempus AI, Cassava Sciences, and Beyond Meat.
In total, the group generated US$77 million in revenue in September.
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