Securities Finance Industry Sees Q2 Revenue Drop Amidst Regional Variations
The global securities finance industry witnessed a decline in revenue during the second quarter of 2024, with a 16% year-over-year drop to $2.53 billion. This was driven by a significant decrease in equity lending revenue and a sharp fall in fixed income revenue.
APAC was a bright spot, with an 8% increase in equity lending revenue, supported by a 13% rise in fees. However, EMEA experienced a 33% drop in equity revenue and a 23% decline in fees. In North America, equity lending revenue fell by 19%, with lending fees decreasing by 22%.
Broker-to-broker transactions generated $696 million in revenue, a 9% decline compared to the previous year. June 2024 saw an additional $207 million in revenue from broker-to-broker activity, reflecting an 11% year-over-year decline. Overall fixed income revenue also declined by 11% year-over-year, with corporate debt revenue plummeting by 32%.
The top revenue-generating securities in June 2024 included Lucid Group, Trump Media & Technology Group, Canopy Growth Corporation, Beyond Meat Inc., and ImmunityBio Inc., collectively contributing $56 million in revenue. Major global banks and financial institutions, such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley, were the top revenue generators in the stock lending sector.
The global securities finance industry's revenue totaled $2.53 billion in Q2 2024, down 16% from the same period last year. In June 2024, revenue stood at $790 million, an 11% decrease from June 2023. Despite regional variations, the overall trend indicates a challenging quarter for the industry.
