UK banks' net derivatives position narrowed to £9.9 billion ($13.3 billion) in the second quarter, the smallest asset-liability gap since 2015. Gross derivatives liabilities rose 1.7% quarter on quarter to £3.18 trillion, outpacing a 0.8% increase in gross assets to £3.19 trillion.

Cboe is considering perpetual futures linked to the VIX once US regulators provide clearer rules, potentially giving traders a more direct way to gain exposure to the volatility index than existing futures, options and ETFs. The move would extend perps beyond crypto into equity volatility, though Cboe said options retain advantages including capped losses for buyers and asymmetric payouts.

Institutional investors are increasingly using event contracts and data from Kalshi to manage event-driven risks and create signals for traditional derivatives markets, says Andy Ross, head of institutional at Kalshi. The company is expanding its offerings to include leverage on some event contracts and exploring innovative products such as multivariate events and perpetual futures.

The Trump administration has urged European countries to release diesel reserves to alleviate the burden on US farmers and businesses amid record-high diesel prices. This call comes as President Trump considers a diesel export ban to manage soaring energy costs, driven by the Iran war and Russia's invasion of Ukraine. The potential US export ban has raised concerns in Europe, which heavily relies on U.S. diesel imports.

Gillian Tett draws a direct parallel between President Trump's potential diesel export ban and President Richard Nixon's 1973 embargo on soyabean exports. While Nixon's move temporarily suppressed domestic soyabean prices, it severely damaged America's reputation as a reliable supplier, prompting key importers such as Japan to invest in alternative sources. This led to Brazil surpassing the US as the world's top soyabean exporter by 2015, with long-lasting negative effects for American farmers. The historical example serves as a cautionary tale about the unintended consequences of politically motivated export bans.

Prediction markets have become mainstream but their rise raises concerns about public health and democracy, as some experts say their structure and accessibility can lead to addiction and financial harm, similar to online sports betting. In addition, prediction markets are increasingly influencing voters by providing real-time odds on election outcomes, but their accuracy and transparency are questionable, as prices can be manipulated by individuals with large stakes or insider information.

The Financial Conduct Authority has started accepting applications from cryptocurrency firms for authorization to operate in the UK. The move brings crypto firms under full FCA regulation for the first time, with standards for consumer protection, market integrity and financial resilience.

The SEC has proposed a tailored crypto-custody framework that would let registered advisers and regulated funds use self-custody in certain cases and allow state trust companies to serve as custodians. The proposal, open for 60 days after Federal Register publication, is part of regulators' effort to build crypto rules under existing authority after the Clarity Act stalled in the Senate.

The Hyperliquid Policy Center has advocated for on-chain perpetual contracts to be regulated as traditional derivatives under the Markets in Financial Instruments Directive II, rather than the Markets in Crypto-Assets framework. In a response to a European Commission consultation, the center argues that the classification should be based on the economic features of the instruments, not the underlying ledger.