Securities Finance Revenue Plummets 16% in Q2 2024 Amid Regional Shifts
The global securities finance industry has witnessed a significant downturn in the second quarter of 2024, with revenue declining across various sectors. Notably, EMEA experienced a substantial 33% drop in equity revenue, while North America saw a 19% decline in equity lending revenue. Meanwhile, APAC bucked the trend with an 8% increase in equity lending revenue.
The overall revenue for securities lenders in Q2 2024 totaled $2.53 billion, a 16% decrease from the previous year. This downturn was reflected in June's figures, with global revenue standing at $790 million, an 11% decrease year-over-year. Broker-to-broker transactions, a significant contributor to revenue, also saw a decline of 9% in Q2 2024 compared to the previous year, generating $696 million.
The top income-generating institutions in the securities lending market in June 2024 included major global business and asset managers, generating a total income of approximately $2 billion. Meanwhile, the top revenue-generating securities in June 2024 were Lucid Group, Trump Media & Technology Group, Canopy Growth Corporation, Beyond Meat Inc., and ImmunityBio Inc., contributing $56 million in revenue.
The decline in revenue was not uniform across all sectors. While equity revenue in EMEA and North America dropped significantly, APAC saw an increase. Overall fixed income revenue also declined by 11% year-over-year, with corporate debt revenue plummeting by 32%. Despite these challenges, the industry remains resilient, with major institutions and securities continuing to generate substantial income.
