Securities Finance April 2025

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April revenues increase despite volatility rising.

• Asian equity revenues grow 35% YoY.
• Average fees increase 41% YoY across Exchange Traded Funds
• Volatility benefits securities lending activity as asset valuations bounce back
• Trends seen throughout March continue into April

In the securities lending markets, revenues reached $1,079M, marking a 4% year-on-year increase. Despite market volatility, both balances and lendable assets continued to grow annually, while average fees fell by 7% to 0.44% across all securities. Throughout the month, trends similar to those seen in March emerged, with revenues from Americas equities declining, Asian equity revenues rising, and Exchange Traded Product and ADR revenues showing impressive year-on-year growth.

Within the equity market, US equities faced the largest year-on-year revenue decline, dropping by 26%. This was driven by a 30% year-on-year fall in average fees. US equity fees have consistently trended lower than the 2024 average of 68bps, remaining significantly below the 72bps average recorded in April 2024. Canadian equities also experienced one of their largest year-on-year revenue drops this year, decreasing by 19% to $32M. Canadian equity revenues are tracking 6% lower year-to-date, despite a slight increase in average fees. A drop in balances has been observed throughout 2025 compared to 2024, impacting revenues.

In Asia, the two largest revenue-generating markets, Japan and Taiwan, saw revenue declines compared to 2024, while several other markets in the region posted remarkable year-on-year gains exceeding 100%. Revenues in Hong Kong continued to rise, achieving a 130% increase over 2024. South Korea's revenues surged by 356% following the removal of the short sale ban, and Malaysian equities maintained their impressive growth throughout the year, recording gains of 103% year-on-year.

Exchange-traded funds remained favoured among borrowers throughout the month, as geopolitical and economic themes dominated headlines. All regions experienced significant year-on-year revenue growth, with average fees across all exchange-traded products rising by 41% year-on-year to 91bps.

Activity in the fixed income markets remained robust, as both government bond yields and corporate bonds felt the effects of government policy and a consensus view that the global economy may suffer due to increased trade complexities. Both government and corporate bonds saw a rise in year-on-year revenues, along with double-digit increases in balances.

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.