Initial margin breaches at central counterparties surged in Q2, driven by tariff-induced volatility, with the Japan Securities Clearing Corporation reporting record breaches across three services, dragging coverage levels below targets. Eurex Clearing, LCH's ForexClear, and CME Clearing also experienced significant breaches.

Foreign investors are increasingly hedging their exposure to the dollar due to concerns about US President Donald Trump's policies, with Deutsche Bank reporting that hedged investments in US bonds and equities have surpassed unhedged holdings for the first time in four years. The trend has contributed to a more than 10% decline in the dollar this year, even as US stocks have surged, highlighting a shift in investor strategy to mitigate currency risk.

CME Group has clarified the purpose of its futures commission merchant, F&O Financial, through a partnership with FanDuel to offer event-based contracts on market-related events. F&O Financial will operate as a nonclearing FCM, alleviating concerns about competition and conflicts of interest.

Brazilian derivatives exchange A5X has raised 200 million reais (about $37 million) in its most recent investment round, bringing its total capital raised since 2023 to 385 million reais. The company says the latest injection will cover its investment needs until it reaches break-even, expected 6 to 12 months after launch, with full operations slated for around mid-2026 following regulatory testing.

Tether is set to launch USAT, a US-regulated, dollar-backed stablecoin. The company has appointed Bo Hines, former White House Crypto Council executive, to lead the initiative. USAT is being designed to comply with the new GENIUS Act, ensuring adherence to US stablecoin regulations and providing a compliant digital asset for the domestic market, Tether said.

Galaxy Digital is reportedly preparing to launch a tokenized money-market fund with a crypto focus. The fund will eventually be available on Ethereum, Solana and Stellar blockchains, sources say.

Deutsche Borse's Crypto Finance Group has introduced AnchorNote, a platform that enables institutional clients to trade digital assets across multiple venues without moving assets out of custody. The initial rollout of AnchorNote is in Switzerland, with plans for expansion across Europe.

The Managed Funds Association is urging the Securities and Exchange Commission to revise short seller rules that currently prevent hedge funds and other investors from participating in public offerings if they have sold the stock short before an offering is announced. The group argues the existing approach is overly restrictive and keeps firms out of stock sales unnecessarily.

Former US Bureau of Labor Statistics Commissioner Erica McEntarfer described her firing as abrupt and unexpected, noting that her conversations with administration officials prior to the dismissal focused on standard questions about recent jobs data trends. She only learned of her termination after seeing a news inquiry about President Trump's social media post calling for her removal. "Firing your chief statisticians for releasing data you do not like, it has serious economic consequences," McEntarfer said.