Securities lending revenues rise 4% YoY for April
07 May 2025 US
Image: Vongvilay/stock/adobe.com
Despite market volatility, securities lending revenues increased 4 per cent year-on-year (YoY) to US$1,079 million for April, according to S&P Global Market Intelligence.
The firm’s monthly figures also highlight the continued growth of balances and lendable assets, although average fees fell by 7 per cent to 0.44 per cent.
Notable trends included a decline in revenues from US equities, which dropped by 26 per cent due to a 30 per cent fall in average fees, while Canadian equities also faced a significant revenue drop of 19 per cent to US$32 million.
In contrast, Asian markets showed mixed results. Hong Kong revenues surged by 130 per cent, while South Korea's revenues skyrocketed by 356 per cent following the removal of the country’s short sale ban.
Exchange-traded funds (ETFs) remained popular, with average fees rising by 41 per cent to 91bps.
The fixed income markets also performed well, with both government and corporate bonds experiencing YoY revenue increases, driven by evolving government policies and global trade complexities.
Commenting on the month’s performance, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “In a market characterised by volatility and political uncertainty, we are witnessing a continuation of the trends established in March, with diverse effects across different regions.
“While US equities are experiencing revenue declines, Asian markets are showing resilience and growth, underscoring the dynamic nature of this region amid this challenging period.”
Chessum pinpoints how ETFs have “continued to excel”, with fixed income funds “leading the way”. In addition, leveraged ETFs have played a “significant role” in revenue generation within this asset class, as investors seek to capitalise on the ongoing volatility in the US tech sector.
He concludes: “As trade tensions begin to ease, we anticipate an increase in market certainty, which should foster a recovery in confidence and create favourable conditions for further year-on-year revenue growth in the coming weeks and months.”
The firm’s monthly figures also highlight the continued growth of balances and lendable assets, although average fees fell by 7 per cent to 0.44 per cent.
Notable trends included a decline in revenues from US equities, which dropped by 26 per cent due to a 30 per cent fall in average fees, while Canadian equities also faced a significant revenue drop of 19 per cent to US$32 million.
In contrast, Asian markets showed mixed results. Hong Kong revenues surged by 130 per cent, while South Korea's revenues skyrocketed by 356 per cent following the removal of the country’s short sale ban.
Exchange-traded funds (ETFs) remained popular, with average fees rising by 41 per cent to 91bps.
The fixed income markets also performed well, with both government and corporate bonds experiencing YoY revenue increases, driven by evolving government policies and global trade complexities.
Commenting on the month’s performance, Matthew Chessum, director of securities finance at S&P Global Market Intelligence, says: “In a market characterised by volatility and political uncertainty, we are witnessing a continuation of the trends established in March, with diverse effects across different regions.
“While US equities are experiencing revenue declines, Asian markets are showing resilience and growth, underscoring the dynamic nature of this region amid this challenging period.”
Chessum pinpoints how ETFs have “continued to excel”, with fixed income funds “leading the way”. In addition, leveraged ETFs have played a “significant role” in revenue generation within this asset class, as investors seek to capitalise on the ongoing volatility in the US tech sector.
He concludes: “As trade tensions begin to ease, we anticipate an increase in market certainty, which should foster a recovery in confidence and create favourable conditions for further year-on-year revenue growth in the coming weeks and months.”
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