The ACI Financial Markets Association (ACIFMA) is planning to file an amicus brief, supporting the appeal of former HSBC executive Mark Johnson, who was convicted of wire fraud relating to a $3.5 billion foreign exchange order in October 2017.
CLS Seeking Legal Fix for Brexit Settlement Threat – Risk.net (subscription)
Critical foreign exchange service CLS hopes EU27 member states will tweak domestic rules to ensure European firms using its London entity still enjoy insolvency protection in the event that the UK leaves the European Union without a Brexit deal next March.
Deutsche Bank’s move to concentrate some of its euro clearing activity in Frankfurt rather than London has revived concerns that the UK capital could lose its dominant role in this area after Brexit. The clearing of euro-denominated derivatives is a key facet in the City of London’s position as a leading global financial centre.
- Deutsche Bank/Eurex: Clear Monster – Financial Times (subscription)
- Deutsche Shifts Chunk of Euro Clearing to Frankfurt from London – Reuters
European banks tightened credit conditions for over-the-counter derivatives and securities financing transactions in the second quarter, with conditions expected to worsen in the third quarter. A European Central Bank survey shows that the credit terms, including price and non-price factors, offered to counterparties tightened the most in a year over the last three months.
- Results of the June 2018 Survey on Credit Terms and Conditions in Euro-Denominated Securities Financing and Over-the-Counter Derivatives Markets – European Central Bank
Libor is sometimes called the “world’s most important number.” The London Interbank Offered Rate (Libor) is everywhere in the financial landscape.
- Investors Cheer Debut Fannie SOFR Note Launch – Risk.net (subscription)
- IHS Markit Provides Critical Infrastructure to Replace Libor in Derivatives Markets – IHS Markit
American Express said an external party will conduct a review of its foreign exchange business after a report said employees boosted rates for some business customers without notifying them.
This month, the US markets regulator announced that it was awarding $30m to an individual whistleblower who had provided key information which led to enforcement action and a $300m settlement. That is the highest ever payout to a whistleblower by the Commodity Futures Trading Commission, which has budgeted for more than $45m in awards in the current financial year alone.
Esma finds “deficiencies” in the national supervision of the sec lending and derivatives activities of Ucits funds.
What it’s like to be the UK’s central bank chief as Britain negotiates its traumatic exit from the EU.
The US Securities and Exchange Commission is well known for bringing landmark cases against the biggest names in finance. But its powers to punish individuals and companies can also be intimidating, something that’s very much on the mind of Valerie Szczepanik, the SEC’s new top official overseeing the nascent cryptocurrency industry.
Thomson Reuters is partnering with CryptoCompare, a cryptocurrency market data aggregator, to integrate order book and trade data for 50 cryptocoins onto its Eikon platform.
Crypto trading and brokerage firm Cryptalgo has teamed up with blockchain investment and advisory firm NKB Group to address the growing demand for crypto services from institutional investors.
Mike Novogratz is past the point of no return. Two days from now, his cryptocurrency-focused merchant bank, Galaxy Digital, will start trading on Toronto’s TSX Venture Exchange. It should be a triumphant moment for the former Goldman Sachs partner and a milestone for the industry, yet Novogratz is having second thoughts.
Coming off back-to-back winning weeks, bitcoin is looking to consolidate the recent momentum that has seen the number one digital currency rise by more than 40% since the start of July. However, the momentum has been dealt a blow with all major coins in the red in afternoon trading.
Bloomberg has launched a new data service with NEX Group that aims to establish the most liquid and transparent reference for US Treasuries and interest rate swaps. Known as Bloomberg Capital Markets Package, the service will combine NEX’s BrokerTec US Treasuries data with USD spread-over data from Tradition’s Trad-X platform.
Mesirow Financial has agreed to acquire assets of The Cambridge Strategy (Asset Management), a UK-based currency alpha investment firm.
Singapore Exchange has reported a net profit of S$363.2 million for the year ending June 30, a 7% increase from the previous year.
The Japanese yen weakened against the dollar on Tuesday after the central bank pledged to keep interest rates low and adopted a forward guidance model to strengthen its commitment for its massive policy stimulus.
Most Asian currencies were little changed on Tuesday after the Bank of Japan refrained from making drastic changes to its accommodative policy and as investors waited on policy reviews from other major central banks, including the Federal Reserve.
The British pound edged higher on Tuesday as investors prepared for the Bank of England’s monetary policy meeting later this week at which markets are now pricing in a near-90 percent chance of a 25 basis points rate rise.
FX options are trading near record lows; an extended period of easy monetary policy has depressed both realized and implied volatility; a slowing Chinese economy could also contribute to soaring FX options volatility in the future, especially on AUDUSD and CADUSD.
President Trump recently tweeted that currency manipulation was rampant across the rest of the world. He blames the US Federal Reserve for raising interest rates and strengthening the dollar. He also accuses China and Europe of manipulating their currencies, making US exports less competitive.
- China’s Falling Yuan Stokes Currency Tensions – Deutsche Welle
- Yuan Weakens, Set for Fourth Straight Monthly Loss in July – Reuters
This year’s dollar rally is three months old and, despite some clouds over the US growth outlook, the gains may have a bit further to go.