Securities Finance Industry Mixed in Q2 2024; APAC Equity Revenue Up 8%
The global securities finance industry experienced a mixed quarter in Q2 2024, with overall revenue declining by 16% year-over-year to $2.53 billion. However, APAC saw an 8% increase in equity lending revenue, supported by a 13% rise in fees.
Broker-to-broker transactions, a significant contributor to the industry's revenue, saw a 9% decline in Q2 2024, generating $696 million. This trend continued into June, with a further 11% decrease in revenue to $207 million compared to the same period last year.
The fixed income sector also struggled, with overall revenue declining by 11% year-over-year in Q2 2024. Corporate debt revenue was particularly hard hit, plummeting by 32%.
Regionally, North America experienced a 19% decline in equity lending revenue, driven by a 22% decrease in lending fees. EMEA fared worse, with a 33% drop in equity revenue and a 23% decline in fees.
Despite these challenges, the top revenue-generating securities in June 2024 included innovative companies like Lucid Group, Trump Media & Technology Group, Canopy Growth Corporation, Beyond Meat Inc., and ImmunityBio Inc., which contributed $56 million in revenue.
In conclusion, while the global securities finance industry faced headwinds in Q2 2024, APAC's equity lending revenue showed resilience. The fixed income sector and broker-to-broker transactions struggled, with significant year-over-year declines. The top securities generating revenue in June 2024 reflected a diverse range of industries.
