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Securities Lending Market Report | H2 2025

North America

>>> Equities

H2 2025 marked a period of normalization in equity markets. While broad indices traded within relatively contained ranges
compared with earlier post-pandemic volatility, securities lending activity remain highly episodic, stock-specific, and event
driven.
US market utilization, fees, and revenue were increasingly Demand was mostly driven by the valuation normalisation
concentrated in a narrow subset of names, while most of trades following strong multi-year rallies in technology and
the equity lending market remained firmly in GC demand. AI-adjacent names, derivatives-linked borrowing driven
This reinforced a structural shift that has been developing by elevated single-stock options volumes and structured
over several years: US equities lending is no longer driven by products.
market-wide hedging cycles, but by micro-level narratives, Derivatives-related borrow demand became increasingly
including corporates actions and derivatives positioning.
important. Market makers and volatility traders required
Lendable supply of US equities remained strong throughout reliable access to underlying shares to hedge delta exposure
H2 2025. Passive investment – particularly ETFs continued leading to persistent baseline demand in certain liquid single
to grow providing stable and predictable source of lendable names.
inventory for large-cap stocks. ISLA 33rd Annual
Corporate actions were an important part of H2 2025 US
However, effective supply was materially more constrained securities lending equities via M&A announcements, spin-
due increased recall activity (around proxy voting, index offs, tender offers, and shares buybacks generating increases
rebalancing, and corporate actions) and more conservative in borrow demand. Convertible bond issuance also played a Securities Finance & Collateral
internal risk limits applied by beneficial owners including role as hedging activity drove incremental short demand in
internal haircuts and counterparty caps. underlying equities further tightening supply in already active
names.
As a result, supply flexibility declined when demand spiked, Management Conference
contributing to sharper rate moves and shorter-lived trade but Overall, H2 2025 revenue delivered moderate growth,
more intense hard-to-borrow conditions. revenue volatility remained elevated with month-to-month
outcomes heavily influenced by deal calendars and sector
Directional macro shorts were relatively limited as most of specific news flow.
hedge funds avoided broad index positioning in favour of 15-18 JUNE, 2026
relative value and pair-trade strategies.

Fig 8 - North American Equity Markets Cash vs Non-Cash
North American Equity Market Cash vs Non-Cash 450.00

On-Loan vs Cash (Billions €) 600.00 350.00 On-Loan vs Non-Cash (Billions €) LEARN MORE
400.00
500.00
400.00
300.00
250.00
300.00
200.00
200.00
150.00
100.00
100.00
0.00
0.00
Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 50.00
For all conference information:
Group Balance vs Cash Group Balance vs Non Cash
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