The Federal Reserve announced it will end its balance sheet runoff on December 1, shifting from reducing its Treasury holdings to maintaining their current level by rolling over maturing securities. This marks an earlier-than-expected conclusion to quantitative tightening, as the Fed has observed signs of tightening liquidity and declining reserve levels in money markets.

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.

Eliminating the Federal Reserve's Method 2 for calculating G-Sib surcharges would significantly reduce capital requirements for major US banks. Seven of the eight US G-Sibs would benefit, unlocking a total of $111.6 billion in capital.

Box-spread loans, once a tool for hedge funds, are gaining popularity among wealthy investors as a cost-effective alternative to traditional bank credit. SyntheticFi co-founder Tony Yang used the strategy to fund a home purchase at a 1.6% interest rate, and the fintech now helps others do the same. However, the strategy carries risks, as a market downturn could lead to margin calls and forced liquidation of portfolios.

Several new exchange-traded funds targeting smaller cryptocurrencies, including the Bitwise Solana Staking ETF and funds linked to Litecoin and Hedera's HBAR, launched this week despite the ongoing government shutdown. While issuers aim to carve out a niche among altcoins, the oversaturation of crypto ETFs could make it challenging for new entrants focusing on lesser-known tokens to capture substantial investor inflows.

Bond investors are divided on the long-term effects of artificial intelligence on interest rates, with some predicting higher rates due to increased economic growth and capital expenditure, while others expect deflationary effects from productivity gains. The timing and magnitude of AI's influence remain unclear, with factors like government debt and demographic shifts further complicating forecasts.

Trump Media & Technology Group is partnering with Crypto.com to launch Truth Predict, a prediction market on Truth Social that will allow users to bet on events such as elections and sports. The initiative, which is set to begin beta testing soon, will compete with platforms such as Kalshi and Polymarket.