2025 becomes record-breaking year for securities lending
05 January 2026 Global
Image: hobbitfoot/stock.adobe.com
Global securities lending revenue attained a record-breaking year in 2025, with a 27 per cent year-on-year (YoY) increase to US$14.9 billion, according to S&P Global Market Intelligence.
Noted as one of the 鈥渉ighest totals on record鈥� the firm says the performance was powered by equities, which contributed US$11.5 billion (up 33 per cent).
Asia led the charge for equities at 54 per cent growth, alongside standout gains in exchange traded products (ETPs), which were up 71 per cent, and American Depositary Receipts (ADRs), up 62 per cent.
Average balances and lendable assets expanded across all sectors, with equities benefiting from market valuations reaching new highs throughout the year.
While fixed income assets delivered steady growth, it was Asian equities, select US names, ETPs, and ADRs, that defined 2025鈥檚 鈥渞emarkable momentum鈥�.
The second half of the year continued this upward trajectory, with revenues climbing 40 per cent YoY to US$8.3 billion.
Average balances rose 20 per cent YoY to US$3.25 trillion and lendable assets increased 16 per cent to US$46.7 trillion, while the average fee improved 17 per cent to 0.50 per cent.
Equities remained the primary growth engine, generating US$6.5 billion in revenue (up 52 per cent) and seeing notable increases in balances, lendable assets, and fees.
The Asian equity and ADR sectors were clear standouts, each posting growth above 70 per cent, while ETPs also performed strongly.
In contrast, government and corporate bonds saw more modest gains, with some fee compression, highlighting the dominance of equities in driving overall performance.
The fourth quarter
According to Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence, both the fourth quarter as a whole, and December itself, concluded the year with strong results.
Revenue from Q4 jumped 31 per cent YoY, reaching US$3.83 billion. It was supported by robust growth in balances and lendable assets, and particularly strong expansion in Asia, ADRs, and ETPs.
December alone saw US$1.21 billion in revenue (up 24 per cent), with Asia equity, ADRs, and ETPs again leading the way.
Chessum comments: 鈥淚n 2025, securities lending revenues soared to new records as elevated valuations, market volatility, and policy uncertainty created fertile ground for lending activity.
鈥淪hort sellers were highly active, capitalising on sharp price swings fuelled by geopolitical shocks, tariff disputes, and election-driven risks. The surge in demand to borrow stocks especially in sectors like AI and semiconductors resulted in elevated fees and abundant lending opportunities.
鈥淎dditionally, rising valuations sparked an increase in corporate deals, further boosting market activity and average fees. This dynamic environment not only delivered record revenues for lenders but also contributed to stronger fund performance through incremental revenues, making 2025 an exceptional year for securities lending participants and investors alike.鈥�
Noted as one of the 鈥渉ighest totals on record鈥� the firm says the performance was powered by equities, which contributed US$11.5 billion (up 33 per cent).
Asia led the charge for equities at 54 per cent growth, alongside standout gains in exchange traded products (ETPs), which were up 71 per cent, and American Depositary Receipts (ADRs), up 62 per cent.
Average balances and lendable assets expanded across all sectors, with equities benefiting from market valuations reaching new highs throughout the year.
While fixed income assets delivered steady growth, it was Asian equities, select US names, ETPs, and ADRs, that defined 2025鈥檚 鈥渞emarkable momentum鈥�.
The second half of the year continued this upward trajectory, with revenues climbing 40 per cent YoY to US$8.3 billion.
Average balances rose 20 per cent YoY to US$3.25 trillion and lendable assets increased 16 per cent to US$46.7 trillion, while the average fee improved 17 per cent to 0.50 per cent.
Equities remained the primary growth engine, generating US$6.5 billion in revenue (up 52 per cent) and seeing notable increases in balances, lendable assets, and fees.
The Asian equity and ADR sectors were clear standouts, each posting growth above 70 per cent, while ETPs also performed strongly.
In contrast, government and corporate bonds saw more modest gains, with some fee compression, highlighting the dominance of equities in driving overall performance.
The fourth quarter
According to Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence, both the fourth quarter as a whole, and December itself, concluded the year with strong results.
Revenue from Q4 jumped 31 per cent YoY, reaching US$3.83 billion. It was supported by robust growth in balances and lendable assets, and particularly strong expansion in Asia, ADRs, and ETPs.
December alone saw US$1.21 billion in revenue (up 24 per cent), with Asia equity, ADRs, and ETPs again leading the way.
Chessum comments: 鈥淚n 2025, securities lending revenues soared to new records as elevated valuations, market volatility, and policy uncertainty created fertile ground for lending activity.
鈥淪hort sellers were highly active, capitalising on sharp price swings fuelled by geopolitical shocks, tariff disputes, and election-driven risks. The surge in demand to borrow stocks especially in sectors like AI and semiconductors resulted in elevated fees and abundant lending opportunities.
鈥淎dditionally, rising valuations sparked an increase in corporate deals, further boosting market activity and average fees. This dynamic environment not only delivered record revenues for lenders but also contributed to stronger fund performance through incremental revenues, making 2025 an exceptional year for securities lending participants and investors alike.鈥�
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