GITNUX MARKETDATA REPORT 2024

Securities Lending Industry Statistics

The securities lending industry statistics provide insights into the borrowing and lending activity of securities, including volume, revenue, and key players within the market.

In this post, we explore key statistics and insights into the securities lending industry, shedding light on its global landscape and significant trends. From the regional distribution of market share to the primary motivations driving borrowing activities, and the evolving role of institutional investors, we uncover the complexities of securities lending and its profound impact on financial markets. Stay tuned to discover the latest trends, challenges, and opportunities shaping this dynamic sector.

Statistic 1

"Europe accounts for around 30% of the global securities lending market."

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Statistic 2

"Asia-Pacific represents about 20% of the securities lending market."

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Statistic 3

"Equities comprise approximately 60% of all securities on loan."

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Statistic 4

"Short selling and hedging are the primary reasons borrowers engage in securities lending."

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Statistic 5

"Securities lending is predominantly carried out by institutional investors including mutual funds, insurance companies, and pension funds."

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Statistic 6

"Securities lending has a notable impact on market liquidity and price discovery."

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Statistic 7

"Over 90% of the securities lending transactions are collateralized."

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Statistic 8

"The utilization rate for securities available for lending fluctuates between 15% to 30%."

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Statistic 9

"North America accounts for approximately 45% of the global securities lending revenue."

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Statistic 10

"Central Counterparties (CCPs) are becoming increasingly pivotal in the securities lending market to manage counterparty risks."

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Statistic 11

"Fixed income products make up around 30% of the lending market."

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Statistic 12

"Lenders utilize securities lending as an income-generating strategy without having to sell their securities."

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Statistic 13

"ETFs represent about 10% of the securities lending market."

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Statistic 14

"Technological advancements are streamlining securities lending operations, reducing operational risk, and increasing transparency."

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Statistic 15

"Fee splits between the borrower and the lender typically range from 60/40 to 70/30."

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Statistic 16

"The revenue from securities lending activities was approximately USD 9.3 billion in 2019."

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Statistic 17

"The average duration of a securities loan is 7 to 10 days."

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Statistic 18

"The global securities lending market size was estimated at USD 2.6 trillion in 2020."

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Statistic 19

"The remainder of global securities lending is spread across other regions including Latin America and Africa."

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Statistic 20

"Rigorous regulations such as Basel III and Dodd-Frank Act impact the securities lending strategies and practices."

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In conclusion, the securities lending industry is a dynamic and globally distributed market, with significant participation from Europe, Asia-Pacific, and North America. Equities remain the dominant asset class involved, principally driven by short selling and hedging activities. Institutional investors play a vital role in securities lending, contributing to market liquidity and price discovery. Collateralized transactions are the norm, with fee splits averaging between 60/40 to 70/30. Technological advancements are enhancing operational efficiency and transparency in securities lending operations. As the market adapts to regulatory frameworks like Basel III and the Dodd-Frank Act, the prominence of Central Counterparties is increasing to manage counterparty risks effectively. With a lucrative revenue stream and a large market size, securities lending continues to be a strategic income-generating tool for lenders across diverse regions globally.

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