Initial margin held by 25 central counterparties reached a record $1.4 trillion in Q1, driven by market turmoil from the Iran war. The Japan Securities Clearing Corp. saw a 40.4% increase in initial margin for exchange-traded products, while ICE Clear Europe and European Commodity Clearing also reported significant increases. The surge in initial margin helped insulate CCPs from breaches, although some CCPs with sharp increases in initial margin experienced more breaches.

The World Cup has fueled more than $3 billion in wagers on Rothera, a new prediction market backed by Robinhood and Susquehanna International Group. Rothera, which started in May, has seen average daily volume jump 86% in July compared with June. While Rothera's volume trails that of Polymarket and Kalshi, its rapid growth during the World Cup highlights its potential as a major player in the prediction market industry.

As trading volumes on Wall Street drop during the summer, prediction markets such as Kalshi and Polymarket are experiencing significant growth. During the 2026 FIFA World Cup, Kalshi reached $100 billion in notional trading volume in a week, and combined with Polymarket, moved $44.8 billion in June. This countercyclical trend highlights the potential for financial services firms to hedge and discover prices during periods of low traditional market activity.

The UK's transition to T+1 settlement is progressing well, with 83% of firms actively engaged in their programs. However, the UK Accelerated Settlement Taskforce emphasizes the need for firms to move from planning to execution, ensuring full funding and addressing key dependencies. The settlement rate target will be based on the average CREST settlement rate from the three months before implementation. Firms should prepare for industry testing in early 2027 and focus on automation and operational resilience.

Beyond controversy, prediction markets are finding a potential financial role as tools for gleaning insights into political and economic events, Katie Martin writes. Investors are increasingly consulting platforms like Kalshi and Polymarket to help inform trading and hedging decisions, treating market odds as a meaningful input rather than the sole basis for action. In specific scenarios -- such as pricing short-term risks in government debt -- prediction markets can offer more accurate signals than traditional financial instruments, filling gaps where standard markets fall short, Martin writes.

Singapore Exchange Group has posted a 72% year-over-year increase in securities market turnover to $44.6 billion for June, with the securities daily average value also rising 72%. Derivatives volume grew 31% to 34.3 million contracts. The Straits Times Index reached an all-time high, and exchange-traded fund activity saw assets under management surpass $20.5 billion.

Options brokers with niche expertise are thriving despite the rise of automation and AI, with agency brokers adding value in fragmented markets by sourcing better pricing from multiple counterparties. Andy Kent of Kyte Broking highlights the challenges of liquidity in Europe and the potential for increased volatility due to rate hikes, geopolitical tensions and the upcoming US midterms.

Americans betting on the World Cup through prediction markets might face lower taxes compared with traditional sportsbooks, because the former are structured as investments. The Internal Revenue Service has not clarified whether payouts from prediction markets should be treated as gambling winnings or investment income, leading to uncertainty for taxpayers.

The European Securities and Markets Authority has initiated a Common Supervisory Action to assess the digital operational resilience of crypto asset service providers, with a focus on custody services. Running from the second half of 2026 to the first half of 2027, the initiative aims to address risks associated with distributed ledger technology, including governance, key management and incident response.

Commodity Futures Trading Commission Chairman Michael Selig has urged lawmakers to pass the Clarity Act to avoid regulators unilaterally writing rules for digital assets. The House passed the bill in July 2025, but the Senate has yet to vote on it. Sen. Cynthia Lummis says negotiations are ongoing, focusing on issues such as decentralized finance and illicit finance provisions.