The Federal Reserve has unveiled the mechanics behind its stress tests for large banks, marking a major shift in transparency. The Fed board voted 6-1 to advance the changes, which include the release of hundreds of pages of documents detailing the models and methodologies used. This move is a response to long-standing complaints from major lenders about the opacity of the tests and a legal challenge from the banking industry.

Market participants are divided on the impact of prediction markets on sports betting integrity as the Commodity Futures Trading Commission oversees a growing sector with limited experience and resources. Critics argue that the CFTC's reliance on self-reporting and whistleblowers is insufficient compared with state-level regulations, while supporters believe that blockchain-based prediction markets offer greater transparency and would be helpful in catching misconduct.

Record trading in single-stock options and leveraged ETFs has amplified volatility in major U.S. equities, with individual companies now seeing daily moves of more than $100 billion in market value. Analysts say retail investors account for about 60% of single-stock options trading, while leveraged ETFs and zero-day options are magnifying price swings around Big Tech earnings.

Recent VIX swings have exposed fragility in US options markets, where modest S&P 500 declines triggered outsized volatility reactions as dealers scrambled to hedge short positions. UBS and Bank of America strategists said October's sharp but brief VIX spike reflected technical pressures from market makers and leveraged ETFs rather than a broad risk-off move. Analysts warn that daily rebalancing in leveraged equity funds, now a $160 billion market concentrated in tech, could amplify future shocks as liquidity thins, creating feedback loops in an otherwise calm market.

Major commodity traders, hedge funds, and banks have ramped up hiring for specialist gold traders amid soaring interest in the metal. Companies like Trafigura Group and Gunvor Group have built new precious-metals teams, while rivals and financial institutions are looking to expand their presence in the sector.

Global macro investors are split on who will absorb the surge in US Treasury issuance following President Trump's $3.4 trillion One Big Beautiful Bill Act. Real money and foreign buyers are retreating amid fiscal and Fed independence concerns, leaving hedge funds as likely takers, a shift that some warn could heighten market fragility.

Nonbank financial institutions such as Jane Street and Citadel Securities have grown their market share in global trading revenue from just 1.6% in 2010 to around 20% today, according to Boston Consulting Group. This share is projected to reach 30% by the end of the decade as these firms continue to challenge traditional banks and expand into new markets.

This weekend, SIFMA coordinated its 2025 Industry-Wide Business Continuity Test, bringing together over 90 firms, exchanges, and service providers to verify their ability to operate through adverse conditions. The annual exercise helps ensure the securities industry can withstand disruption, protect investors, and maintain confidence in US markets.

Citigroup and Coinbase have partnered to launch a blockchain-based payment and settlement system aimed at supporting 24/7 trading and cross-border transactions. The collaboration combines Citi's 300-network global payments infrastructure with Coinbase's digital asset expertise to develop real-time fiat-to-stablecoin solutions, marking a major step toward integrating traditional finance with on-chain settlement.