Global hedge fund capital reached nearly $5 trillion in Q3, driven by record investor inflows, according to Hedge Fund Research. The number of hedge funds has also reached a decade high of 8,464, with equity hedge funds leading with $18 billion in Q3 flows. Major banks such as JPMorgan Chase, Goldman Sachs and Bank of America have benefited from the surge in prime brokerage business tied to the hedge fund sector's growth.

SEC Chair Paul Atkins voiced support for allowing private market exposure in 401(k) plans, aligning with SIFMA's call to broaden access to alternative assets. Speaking at SIFMA's Annual Meeting, Atkins said the SEC would explore rulemaking and coordination with the Labor Department following President Trump's executive order promoting alts in retirement accounts. Industry leaders, including Stifel CEO Ron Kruszewski, backed the idea of "responsible access," while lawmakers such as Rep. French Hill, R-Ark., signaled potential congressional hearings on revising accredited investor rules.

President Donald Trump has nominated Mike Selig, a longtime crypto ally and current SEC Crypto Task Force general counsel, to chair the Commodity Futures Trading Commission, with Selig pledging to help make the US the "Crypto Capital of the World." While a market-structure bill is stalled in the Senate, the CFTC is expected to play a central oversight role in crypto markets if it advances.

Securities and Exchange Commission Chair Paul Atkins and Commodity Futures Trading Commission Acting Chair Caroline Pham announced plans to reform regulations and foster financial innovation at the 2025 SIFMA Annual Meeting on Tuesday. Atkins said it will become easier for companies to go public, annual meetings will face fewer shareholder proposals, and that the SEC is working on rules for blockchain use in securities. Pham highlighted efforts to streamline CFTC rules and aims to resolve conflicting margin requirements by year's end, potentially saving Wall Street $25 billion.

Leveraged single-stock exchange-traded funds are gaining popularity, offering the potential for double the returns of reference assets on a daily basis. However, these funds also amplify losses, leading to significant deviations from the returns of the underlying stocks over time.

US M&A activity has surged, with over $80 billion in deals announced within a 24-hour span, signaling a robust revival in corporate consolidation. The flurry of transactions spans sectors from utilities to banking, as companies capitalize on a favorable environment characterized by accessible capital and strategic motivations. Optimism is mounting among dealmakers, who note that the fourth quarter is shaping up to be one of heightened activity.

Treasury traders are all but certain the Federal Reserve will deliver another quarter-point rate cut this week, shifting focus to what policymakers signal about the path ahead. With the government shutdown halting key data releases, investors will parse Fed communication for clues on how officials are balancing still-elevated inflation against signs of labor market softening. Two-year yields hovered below 3.5% for a second week, reflecting confidence in continued easing, while 10-year yields steadied near 4%.

Institutional investors are reducing their real estate allocations for the first time in 13 years, according to a survey by Cornell University and Hodes Weill & Associates. The target allocation has dropped to 10.7% amid sluggish property transactions and high interest rates, with investors selling real estate fund stakes at a 34% average discount to net asset value.

From SIFMA's 2025 Annual Meeting in Washington, DC, SIFMA President and CEO Kenneth E. Bentsen, Jr. joined Romaine Bostick and Katie Greifeld on Bloomberg's "Bloomberg The Close" to discuss the intersection between public policy and finance and findings from the new Voice of Investor Satisfaction, Trust, and Advocacy (VISTA) Study, which surveyed over 2,000 investors across multiple generations.