ISLA's latest Securities Lending Market Report, with insights from Deutsche Bank, highlights how volatility in the first half of 2025 has led to increased returns for securities lenders. Major events include the lifting of South Korea's short-sale ban and the growth of the Saudi Arabian market. The report also notes the impact of expanded fiscal policies in the eurozone, the UK and the US on fixed-income markets.

The Managed Funds Association is urging the Securities and Exchange Commission to revise short seller rules that currently prevent hedge funds and other investors from participating in public offerings if they have sold the stock short before an offering is announced. The group argues the existing approach is overly restrictive and keeps firms out of stock sales unnecessarily.

Vietnam's new plan to reform its markets includes the gradual introduction securities lending and controlled short selling. Additionally, the plan aims to boost liquidity through new order types and the establishment of a market-maker system in line with global standards, all designed to attract a broader range of investors and foster a more dynamic trading environment.

US Securities and Exchange Commission Chair Paul Atkins has signaled a more collaborative regulatory approach, pledging businesses will get notice of technical violations before facing penalties. The move marks a sharp break from Gary Gensler's aggressive enforcement era under President Biden, with Atkins focusing enforcement on fraud while advancing the White House's crypto-friendly agenda. He also outlined plans to craft rules for tokenized securities and smart contracts.

President Donald Trump has suggested that US public companies switch from quarterly to semiannual earnings reporting, a system in place since 1970. The change, which would require Securities and Exchange Commission approval, is aimed at reducing costs and easing short-term pressures. Supporters say it could encourage longer-term planning, while critics warn it would reduce transparency and limit timely information for investors.

French government bonds have surpassed German bunds as the most borrowed European sovereign securities, with borrowing balances reaching 417 billion, the highest since the global financial crisis, according to S&P Global Market Intelligence. This shift is driven by political instability and fiscal concerns, particularly after the collapse of Prime Minister Francois Bayrou's government, which has left France with the eurozone's largest budget deficit. Investors are increasingly shorting French debt, leading to higher yields and increased securities-lending activity.

Hedge funds increased short positions in large-cap technology and index-tracking securities in August as new US tariffs took effect, according to Hazeltree. In Europe, Middle East and Africa, luxury and consumer firms saw notable short-selling activity, while in the Asia-Pacific were among the most crowded shorts. Hazeltree notes potential short-squeeze risks, especially in markets with high borrowing costs.

S3 Partners has made its real-time short interest dataset available through Bloomberg's Data License, allowing enterprise customers to access data via the Per Security service, Bloomberg Terminal and Bloomberg Query Language API. The collaboration aims to enhance data-driven investment research, offering insights into market behavior, crowding and concentration risk.

Clearstream has reported a 22% year-over-year increase in global securities financing volume outstanding, reaching €880.35 billion in August. Assets under custody grew 9% to €20.53 trillion. The investment funds services division saw an 11% increase in securities deposits and a 15% rise in transaction volume.

Nasdaq has submitted a proposal to the US Securities and Exchange Commission to allow all securities traded on the Nasdaq Market Center to be available on both traditional systems and distributed ledger technology. This move is expected to significantly impact equity securities lending and mark a major step toward integrating DLT into traditional finance.

Fund managers are moving from considering generative artificial intelligence to actively integrating it, with 58% expecting increased use in investment processes in the next year, according to a report from the Alternative Investment Management Association. The report also shows that 95% of fund managers already use generative AI, and 60% of institutional investors are more likely to invest in funds that allocate significant budgets to generative AI. However, the report highlights a governance gap, particularly among smaller firms, regarding generative AI usage policies.

Buy-side and proprietary trading firms are increasingly interested in self-clearing as cloud-based technology advances and in response to the Securities and Exchange Commission's US Treasury clearing mandate, according to an Acuiti report. The study notes that 44% of firms are open to self-clearing, and 12% have already become individual clearing members, citing cost reduction, competitive advantage and operational efficiency as incentives.