Global securities lending revenue up 7% YoY for May
05 June 2025 Global
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Global securities finance revenue for lenders increased by 7 per cent year-on-year (YoY) for May, generating US$955 million, according to EquiLend Data & Analytics.
Interdealer financing — securities transactions between broker-dealers — generated US$285 million in revenue in the month, up 15 per cent YoY.
Global equity revenue increased by 7 per cent, as a rise in balances of 16 per cent offset an 8 per cent decrease in fees.
With optimism surrounding tariff negotiations and stronger-than-expected first-quarter growth for US companies, according to FactSet, most major indices rebounded from April lows, pushing lending balances higher.
Within the US, lending revenue for stocks rose by 3 per cent, with balances increasing 19 per cent compared to May 2024.
Regionally, equity lending revenue in EMEA grew by 5 per cent YoY, as an 18 per cent rise in balances offset a 9 per cent dip in fees.
Italy led the EMEA region with a 123 per cent YoY gain, as both fees and balances skyrocketed.
The top two earners in Italian equities — insurance company Generali and Banca Monte dei Paschi di Siena, the oldest operating bank — were actively lent before and after their respective dividends.
In APAC, equity lending revenue rose by 17 per cent, as balances once again grew by 12 per cent, and fees increased by 5 per cent.
Lending of Hong Kong equities had the largest YoY gain of 41 per cent aside from South Korea, which generated US$33 million in securities lending revenue in May, following the recent removal of its short selling ban.
Global fixed income revenue increased 8 per cent YoY, as government debt lending revenue improved by 7 per cent and corporate debt by 9 per cent.
While average fees for both government and corporate debt fell by similar margins — 4 per cent and 12 per cent, respectively — loan values rose 11 per cent and 22 per cent YoY.
The top five earning securities in the global lending markets in May were Pony AI, Enbridge, Coreweave, Koninklijke Philips, and Rocket Companies.
In total, the five securities generated US$62 million in revenue for lenders in the month.
Interdealer financing — securities transactions between broker-dealers — generated US$285 million in revenue in the month, up 15 per cent YoY.
Global equity revenue increased by 7 per cent, as a rise in balances of 16 per cent offset an 8 per cent decrease in fees.
With optimism surrounding tariff negotiations and stronger-than-expected first-quarter growth for US companies, according to FactSet, most major indices rebounded from April lows, pushing lending balances higher.
Within the US, lending revenue for stocks rose by 3 per cent, with balances increasing 19 per cent compared to May 2024.
Regionally, equity lending revenue in EMEA grew by 5 per cent YoY, as an 18 per cent rise in balances offset a 9 per cent dip in fees.
Italy led the EMEA region with a 123 per cent YoY gain, as both fees and balances skyrocketed.
The top two earners in Italian equities — insurance company Generali and Banca Monte dei Paschi di Siena, the oldest operating bank — were actively lent before and after their respective dividends.
In APAC, equity lending revenue rose by 17 per cent, as balances once again grew by 12 per cent, and fees increased by 5 per cent.
Lending of Hong Kong equities had the largest YoY gain of 41 per cent aside from South Korea, which generated US$33 million in securities lending revenue in May, following the recent removal of its short selling ban.
Global fixed income revenue increased 8 per cent YoY, as government debt lending revenue improved by 7 per cent and corporate debt by 9 per cent.
While average fees for both government and corporate debt fell by similar margins — 4 per cent and 12 per cent, respectively — loan values rose 11 per cent and 22 per cent YoY.
The top five earning securities in the global lending markets in May were Pony AI, Enbridge, Coreweave, Koninklijke Philips, and Rocket Companies.
In total, the five securities generated US$62 million in revenue for lenders in the month.
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