Global securities finance revenue for lenders reached $856 million in April 2025, up 1.18% year-over-year. This growth was primarily driven by fixed income lending, which saw a 12% increase in revenue, with government debt lending up 13% and corporate debt up 11%. The volume of bonds on loan rose substantially, reflecting heightened demand for high-quality collateral amid ongoing market volatility 7.
Equity lending revenue declined by 2% globally, with a notable 15% drop in U.S. stock lending revenue and a 24% decrease in average fees, suggesting hedge funds are taking a more cautious stance in the face of unpredictable markets. However, APAC markets, especially South Korea and Hong Kong, saw dramatic gains in securities lending revenue following the lifting of South Korea’s short-selling ban at the end of March 7 5.
Repo market volumes remain robust, with new highs in transactions and active participation from both buy- and sell-side institutions. Innovations such as blockchain-based intraday repo are gaining traction, particularly for liquidity management, although traditional term and overnight repo trading still dominate 8.
In Europe, repo trading volumes at Eurex Repo dropped 14% year-over-year for April, reflecting some regional divergence in activity 2. However, the broader market remains resilient, with increased buy-side onboarding to clearinghouses and a strong push toward central clearing for US Treasury repo and other government securities globally 4 15.
The push for mandatory clearing of US Treasury repo continues to shape the global market, with significant attention on operational efficiencies and dealer balance sheet optimisation. Although US rules have been delayed until June 2027, volumes at the DTCC’s Fixed Income Clearing Corporation have continued to grow, surpassing $2 trillion at the end of March 2025. European and Asian markets are also preparing for broader adoption of cleared repo 4 9.
In the UK, the Securities Lending Committee highlighted increased demand for high-quality liquid assets and ongoing efforts to automate and streamline securities finance operations. The accelerated T+1 settlement regime and adjustments to best practices for recalls are also in focus, as is the monitoring of tax and regulatory changes in both the UK and EU 9.
Persistent inflation, uneven global growth, and diverging central bank policies continue to drive volatility, creating both risks and opportunities in securities lending and repo markets. The Trump administration’s tariff policies and ongoing US-China and EU-US trade tensions are influencing sector-specific demand, particularly in equities and export-related industries 3 5.
The demand for high-quality collateral remains strong, with borrowers seeking greater flexibility and longer durations in trades. In Europe, the ECB’s quantitative tightening and the reversal of the US bond basis trade are prompting dealer repricing and shifts in trading strategies 8 5.
APAC: South Korea and Hong Kong led revenue gains in securities lending, with South Korea’s market surging after the short-selling ban was lifted 7 5.
EMEA: The Netherlands posted a 40% year-over-year gain in equity lending revenue, while overall activity in the region was supported by increased loan balances despite declining fees 7.
Americas: The US saw mixed trends, with declining equity lending revenue but strong fixed income activity. The repo market continues to be shaped by regulatory developments and the anticipation of mandatory clearing 4 7.
Summary Table: Recent Repo and Securities Finance Market Trends
| Region | Repo/Securities Lending Trend | Key Drivers/Events |
|---|---|---|
| Global | Robust fixed income, mixed equities | Volatility, high-quality collateral demand, regulation |
| US | Strong repo clearing growth, equity lending down | Tariff policy, Fed guidance, regulatory changes |
| EMEA | Repo volumes down at Eurex, lending up in NL | ECB policy, quantitative tightening, T+1 settlement |
| APAC | Lending revenue surges in SK, HK | Short-selling ban lifted, strong demand |
The past week in global repo and securities finance has been marked by strong fixed income lending, regionally divergent equity trends, and continued structural evolution driven by regulation, technology, and macroeconomic volatility. The market remains resilient and adaptive, with participants seeking efficiency and new opportunities amid ongoing geopolitical and policy uncertainty 4 7 8 9.
SecFin Solutions is a leading consultancy in the Securities Financing and Global Markets industry, founded and led by Glenn Handley, a recognised expert with decades of experience at the highest levels of global finance. We specialise in delivering innovative, practical solutions that streamline financial operations, enhance compliance, and optimise performance for firms of all sizes.
Our consulting services cover every aspect of securities financing, from repo and securities lending to risk management, regulatory change, and operational transformation. We work closely with clients to design bespoke strategies that address today’s market challenges and tomorrow’s opportunities.
We are also renowned for our industry-leading training and coaching programmes. Our flagship “Advanced Repo and Securities Lending and Borrowing” course is an intensive, in-person programme in Central London, designed for professionals seeking deep expertise in repo, securities finance, and the latest regulatory frameworks. The course combines real-world case studies, expert insights, and practical skills to empower delegates to excel in their roles.
We also provide training for Non-Bank Financial Institutions, Corporate Treasurers, Middle Office and Back Office Professionals and legal professionals.
Whether you need strategic advice, hands-on training, or expert guidance through market change, SecFin Solutions is your trusted partner for success in global securities finance.
For full details please see www.secfinsolutions.com or contact glenn@secfinsolutions.com.
Glenn Handley
Consultant and owner, SecFin Solutions Limited
glenn@secfinsolutions.com
www.secfinsolutions.com
Office: +44 20 7953 4475
Mobile: +44 7590 466621
26th May 2025
© 2025 SecFin Solutions Limited. All rights reserved. This paper and its contents are for informational purposes only and may not be reproduced, distributed, or used without prior written permission.
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