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4 Securities Lending Market Report | H1 2025 5

Foreword

>>> Welcome to the 23rd edition of ISLA’s Securities Lending Market Report.

I write it every year, but 2025 has truly been a remarkable While the EU looks to be on an evolutionary journey, Looking ahead, many of the themes I have written about
year - from the impact of Trump 2.0 and the growth of digi- one area where stability and cohesion is necessary is will be discussed at our upcoming 15th Annual Post Trade
fi and AI, to the distinct evolution of our regulatory agenda Accelerated Settlement, where market fragmentation and Conference in London. As we edge closer to go-live for
- the future of our world and of our industry is being the complexities resulting from jurisdictional differences, EU and UK T+1, markets push for 24/7 trading, and new
shaped at a rapid pace. settlement cut-offs and timelines offer a number of hurdles regional trading models need to be accommodated within
that need addressing.
At the start of the year, I spoke about how the global the global post-trade ecosystem, this year’s conference
ramifications of the new U.S. Administration would be Another breakout theme of the year thus far has been will consider how the industry will need to adapt to
profound. While my initial assessments were focused on the paradigm shift towards a digi-fi world, with banks, accommodate these shifts, and the relentless demands of a
financial regulation, President Trump’s global trade agenda vendors and market infrastructure firms moving from changing industry. I hope to see many of you there!
has proved my initial view to be true on many fronts. theory to active application of tokenisation. From collateral In closing, I would also like to thank the team at Deutsche
Liberation Day has defined the first half of the year, and optimisation, tokenisation of money market funds Bank for providing the market commentary for this report.
while not directly related to financial regulation, the shift in and native digital securities issuance and settlement, The support of our members has been invaluable to the
focus on national growth and competitiveness has without tokenisation and DLT applications are gaining momentum. publication of these reports over the last decade. Andrew Dyson, CEO, ISLA
doubt shaped the tone and direction of global regulators, With this comes the need for standards to provide a
not least in the EU. framework for interoperability and interconnectivity Finally, and by no means least, I would like to thank
between proprietary and off-the-shelf solutions. our data partners - tri-party agents BNY, Euroclear,
A prime example is the Savings and Investment Union (SIU) Clearstream, and JP Morgan, as well as data firms
which has been badged by the Commission as a “horizontal Standards were a recurring topic of discussion during our
enabler” and catalyst that will drive a financing ecosystem 32nd Annual Securities Finance & Collateral Management DataLend, S&P Global, and FIS Global, for providing the
and underpin the EU’s strategic objectives. Through Conference in Madrid. It was clear to me that participants underlying data, without which it would not have been
integrated capital markets, alongside a more uniform at every juncture of our ecosystem are looking for a possible to compile this report.
approach to regulation, the SIU aims to unlock unshackled common ground to build and integrate systems to Andrew Dyson
deposits to meet the EU’s investment needs – in other overcome everything from efficiency challenges, security CEO
words, turn savers into investors. risks and to fully embrace tokenisation and AI.

From collateral optimisation, tokenisation of money market

funds and native digital securities issuance and settlement,

and DLT applications are gaining momentum.