Kevin Warsh, nominee for US central bank chief, has emphasized the Federal Reserve's role in supporting the "economic statecraft agenda" led by Treasury Secretary Scott Bessent and Secretary of State Marco Rubio to maintain the US' global economic position. Warsh highlighted the importance of ensuring a safe financial system amid global rivalry, particularly with China.

Kalshi fined and suspended three candidates running for Congress for making wagers on their own races, with the company labeling the actions as "political insider trading." Minnesota state Sen. Matt Klein, Ezekiel Enriquez and Mark Moran were penalized under Kalshi's rules, which forbid candidates from betting on markets regarding their own elections.

The failure of Silicon Valley Bank highlights a flaw in size-tiered supervision, which provides "hidden grace periods" when banks transition between supervisory tiers, writes Pedro Batista, a lecturer at the University of Leeds School of Law and a research fellow at New York University School of Law. As banks grow and move into more stringent supervisory categories, the practical implementation of enhanced standards can lag, allowing banks to continue risky practices. This delay can be dangerous, especially for rapidly expanding banks, as it "gives management time to compound fragility" before stricter oversight takes effect, Batista writes.

Federal Reserve Governor Christopher Waller called for a fundamental reworking of the central bank's internal operations, arguing that key support functions should be more centralized and less dependent on consensus among the Fed's 12 regional banks. Waller said the US economy and banking system have grown less regional over time, making the Fed's current structure less effective. He outlined models aimed at streamlining decision-making and improving efficiency, resilience, and cybersecurity, emphasizing that faster adaptation is essential as technological change reshapes financial oversight and risk management.

The Bank of England is conducting a stress test involving more than 40 firms to assess the impact of a potential global downturn on the private credit market, which has grown to $1.8 trillion. Deputy Governor Sarah Breeden has highlighted risks such as leverage and a lack of transparency, but played down the likelihood of a repeat of the global financial crisis, saying, "We shouldn't be in a situation where this brings down the banking system, but it might cause a private credit crunch in the way we had a banking credit crunch."

High-frequency and proprietary trading firms are enjoying a sharp revival, driven by market volatility, consolidation and expansion into new asset classes including crypto. Strong retail participation and broader trading strategies have boosted revenue, with leading firms generating higher profit and increasing their influence across global markets.

Citadel Securities is entering high-touch equity trading, traditionally dominated by banks such as JPMorgan Chase. The move, highlighted in JPMorgan CEO Jamie Dimon's recent letter to shareholders, involves handling large block trades for institutional clients, a departure from Citadel's usual high-volume, low-touch trading. The initiative, led by Citadel President Jim Esposito, includes hiring experienced bankers and leveraging advanced technology.

Polymarket is launching perpetual futures trading as rival Kalshi also explores offering similar crypto-linked derivatives, marking a broader push by prediction market platforms into leveraged products. The shift intensifies competition with crypto exchanges and brokers while targeting retail demand for higher-risk, short-term trading instruments.