German Chancellor Friedrich Merz is set to meet with frontrunners Pablo Hernandez de Cos of Spain and Klaas Knot of the Netherlands to discuss their candidacies to succeed European Central Bank President Christine Lagarde. The meetings come as speculation grows about Lagarde's early departure and the resignation of German policymaker Isabel Schnabel. The selection process for the next ECB president is accelerating, with Greece's premier predicting a "grand bargain" to fill three impending vacancies at once.

US Federal Reserve Vice Chair Philip Jefferson and New York Fed President John Williams have indicated that the central bank can take time to evaluate the economy before considering another interest-rate hike, leading investors to scale back expectations for an increase at this month's meeting. The remarks come as Fed Chair Kevin Warsh moves away from forward guidance, encouraging investors to rely on economic data instead.

The 10-year US Treasury yield above 5% and roughly $1.05 trillion of net interest costs in the first 11 months of fiscal 2026 are raising debt-spiral concerns, but strategists say a fiscal crisis is not imminent. Average Treasury maturity of about 5.9 years and nominal GDP growth of 8.5% help cushion the impact, while analysts say strong growth, US Federal Reserve hike expectations and higher oil prices are also driving yields.

European government bond traders are vigilant for contagion after a recent sell-off reminiscent of the debt crisis 15 years ago. French bonds have been particularly volatile due to political and economic issues, causing significant spread movements in other countries such as Italy and Belgium. Investors are now watching to see how the European Central Bank will respond to this volatility.

China has reduced the number of banks by nearly a quarter, closing more than 670 mostly rural banks in 2025, as part of an effort to bolster the financial system amid sluggish economic growth and weak demand for credit. The move aims to tighten oversight and prevent liquidity issues among smaller lenders, which Fitch Ratings has identified as the weakest link in the banking system.

Global M&A fell to $986 billion in the third quarter from nearly $1.7 trillion in the second, with activity down 13% year on year as higher rates, AI uncertainty and US midterm risks made boards more cautious. Year-to-date deal value stands at about $3.9 trillion, leaving the market behind 2021's record pace despite continued appetite for large strategic transactions.

EU leaders are considering a central regulator to oversee trading venues and post-trade infrastructure, aiming to boost economic growth and competitiveness against the US. The proposal would centralize power in the European Securities and Markets Authority, harmonize market supervision, and reduce regulatory burdens. While supporters see this as a step toward more integrated capital markets, critics argue there is no proven link between supervisory models and economic growth, warning that it might disrupt successful national regulatory frameworks.

SEBI is considering looser position limits for non-agricultural commodity derivatives and phased physical settlement for some farm contracts to deepen liquidity and attract more hedgers. Notional futures and options turnover reached about 1,538 trillion rupees ($16 trillion) in the first half of the fiscal year, already 11% above the total for the previous full year.

This paper examines the transition to mandatory central clearing of US Treasuries, covering the policy objectives underlying the reforms and the evolving market structure, including trends in clearing adoption and client participation. Click here to read the paper.

The ISDA Digital Assets Forum will bring together regulators, market leaders and infrastructure providers to discuss how to build safe, scalable and efficient markets for digital assets. This event will provide practical insights into where the opportunities lie - and what still needs to change. It is a must-attend event for senior professionals from banks, asset managers, exchanges, infrastructure providers and regulatory bodies who are navigating the transition to next-generation financial markets. Register here to secure your spot!