The Basel Committee's latest monitoring report shows that final Basel III reforms are set to raise minimum capital requirements for large international banks by 2.1% as of end-2024, up 21 basis points from mid-year. The increase is largely driven by the output floor, which adds 3.6% to capital needs, partly offset by a 2.5% reduction from leverage ratio changes. Smaller "Group 2" banks face a lighter impact of 1.3%, down sharply from earlier estimates, while the biggest rises fall on non-G-Sib institutions.

Indian trading firms are shifting from high-frequency options strategies to data-driven tactics following a crackdown by the Securities and Exchange Board of India on the derivatives market and an investigation into Jane Street Group. Firms including AlphaGrep, QE Securities, and Graviton Research Capital, are moving away from ultra-fast, expiry-day options strategies and focusing on mid-frequency, data-driven, and machine-learning models targeting longer-term derivatives, cash equities, and commodities.

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Retail trading through exchange-traded and structured products has transformed options markets, increasing liquidity and creating opportunities for hedge funds and large traders to profit from market dislocations, experts say. "We're able to get in and out of huge positions that we could never have done 10 years ago because of this kind of flow," says Benn Eifert, co-chief investment officer and head of multi-strategy at QVR Advisors.

The once-reliable volatility risk premium in equity options has largely disappeared, with systematic option-selling strategies delivering flat returns since 2017. Analysts attribute the decline to post-crisis market stability and the rise of short-dated, high-frequency hedging, which compresses risk premiums. To capture value, volatility investors are diversifying across assets such as commodities and fixed income, where cross-market volatility remains more rewarding.

European natural gas futures rose as traders weighed the risk that a forecast for colder weather will drive demand higher and strain supplies. Futures have traded in a narrow range since the start of October, and Europe has built up strong gas stockpiles, which are 83% full, but recent days have brought a decline in shipments and piped imports from Norway.

Deutsche Borse expects the Active Account Requirement under the updated European Market Infrastructure Regulation will lead to growth in its fixed income franchise. "We are already seeing initial benefits from AAR under EMIR, for example in over-the-counter clearing with a noticeable step up in volumes, and this puts us on track with our fixed income roadmap for further momentum in the coming months," CEO Stephan Leithner said.

DBS and Goldman Sachs have completed the first over-the-counter cryptocurrency options trade between two banks, involving cash-settled bitcoin and ether options. DBS reports over $1 billion in client trades involving cryptocurrency options and structured notes in the first half of 2025, with a nearly 60% increase in trade volume from the first quarter to the second quarter.

Clearstream and the Securities Depository Center, a subsidiary of the Saudi Tadawul Group, have signed an agreement to enhance post-trade services in Saudi Arabia. The partnership will focus on new services such as collateral management, securities lending and digital securities.

Soybean traders are cautious after China's purchase of US soybeans, waiting for details from the trade agreement between the two countries. Although the purchase is seen as a positive sign, the volume is small compared with previous years.

Japan Exchange Group has reported a 9.2% revenue increase for the first half of fiscal 2025-26, reaching ¥89.3 billion, despite a decline in derivatives trading. The cash-equities segment saw a 9.5% rise in trading activity, but derivatives, including Nikkei futures and options, experienced significant drops in volume.

The Indian Central Electricity Regulatory Commission has launched an investigation into GNA Energy for alleged insider trading involving shares of the Indian Energy Exchange. The Securities and Exchange Board of India has already barred eight people from trading in connection with this case, accusing them of profiting from unpublished price-sensitive information.