Top Headlines 

ASIC Bans Rogue Deutsche Bank Trader Andrew Donaldson for Life – Sydney Morning Herald

A former Deutsche Bank currency trader has been permanently banned from the industry after a series of false trades artificially boosted the bank’s revenue by 28 million euros. 

EU Banks Closer to USD 5 Billion Respite With SEC Clearing Rule – Bloomberg

European Union banks are a step closer to avoiding billions of dollars of capital charges on their trades in derivatives and other securities after the US Securities and Exchange Commission adopted final rules for clearing firms.

EU Non-Cleared Margin Regime Set to Take Effect in January 2017 – Risk

EC expected to publish its final non-cleared margin rules on October 4. 

US Dollar Slips Against Commodity Currencies After OPEC Deal – Reuters

The US dollar hit a roughly five-month low against the Norwegian crown and fell against other commodity-linked currencies after OPEC sources told Reuters the producing group agreed to reduce its oil output.

Banks Warn Prime Brokerage Clients of ‘Material’ MVA Costs – Risk

The buy side is being warned to brace for a “material” impact on fees they pay for foreign exchange prime brokerage services following the introduction of margin rules for non-cleared swaps.

Currencies Steady as Yellen Confirms Fed Eyeing December – Business Times

Federal Reserve Chair Janet Yellen’s reiteration to Congress that most of the Fed’s policymaking board expect a rate rise by December failed to move the US currency. 

Hong Kong to Remain a Yuan Hub as Currency Joins Reserve Basket, Says HKMA Chief – South China Morning Post

Hong Kong Monetary Authority chief executive Norman Chan Tak-lam expects Hong Kong to play a bigger role in international yuan business as the currency will be increasingly used for international trade settlement after it joins the IMF’s reserve currency basket this weekend.

Hedging Asia’s Worst Currency Makes Yuan Bond Costs Prohibitive – Bloomberg

Hedging against further declines in Asia’s worst-performing currency has become so expensive that some global investors are throwing in the towel on yuan bonds.

Former ‘Lavish’ FX Trader Hope Jailed for Extra 603 Days – Financial Times (subscription)

In total, over 100 investors entrusted Hope with over £5.5 million on the promise that their funds would be used to generate substantial returns by his trading on the foreign exchange markets.

How Much Weaker Can the Swedish Krona Go? – Financial Times (subscription)

Sweden’s krona has reached an unsustainably low level that will force the country’s central bank to confront a realisation that is dawning on others about the limitations of monetary easing, analysts are predicting. 

Want More Proof Markets Aren’t Efficient? Look at EM Hedging – Wall Street Journal (subscription)

Investors would save money hedging currency risk through options instead of forwards.

Loonie Rally is Over and the Currency is Heading Back to Low 70s, Says Analyst – Financial Post

The Canadian dollar has had a strong year against the US dollar, but its run is about to end, says an analyst with Canaccord Genuity.

Bitcoin Still “Currency of Choice” for Cybercriminals… For Now – City AM

Bitcoin remains the “currency of choice” for cyber criminals but they may soon turn to newer digital currencies, Europe’s top police agency has said, and even start targeting blockchain, the technology beneath it.

Regulatory News 

ESMA Looks to Set Rules for Financial Benchmarks Including Daily FX Fix – Leap Rate

Pan European financial regulator European Securities and Markets Authority has published a consultation paper regarding its draft regulatory and implementing technical standards which will implement the Benchmarks Regulation. 

Brazilian Real Declines Ahead of Central Bank Currency Fixing – Bloomberg

Brazil’s real fell amid speculation banks were seeking to weaken it before the central bank determines a key rate used in settling some financial contracts.

Bank of Russia to Forgo Buying Foreign Currency Through 2019 – Bloomberg

Russia’s central bank said it won’t interfere in the market with foreign-currency purchases in the next three years as it’s in no rush to reach the target of $500 billion in international reserves, forecasting the stockpile will stay largely unchanged through 2019. 

China Money-Market Rates Advance as PBOC Withdraws More Cash – Bloomberg

China’s money-market rates climbed to multi-month highs as the central bank pulled funds from the financial system and commercial lenders stocked up on cash to meet quarter-end requirements.

Congo Raises Key Rate to Seven Percent to Curb Inflation, Currency Weakness – Bloomberg

The Democratic Republic of Congo raised its key interest rate by five percentage points to seven percent, citing rising inflation and “tensions in the foreign-exchange market,” Governor Deogratias Mutombo Mwana Nyembo said.

Company News

China’s Currency Reforms Has Biggest Impact on Business, Say APAC’s Corporate Treasurers – CFO Innovation

The reform of China’s currency exchange rate regime has been identified by corporate treasurers across Asia Pacific as having the most impact on their business over the last 12 months, according to a JP Morgan survey of companies with a collective market capitalization in excess of US$3.2 trillion. 

FastMatch Joins IPC’s FX Hub – Finextra

The collaboration between IPC and FastMatch enables market participants within the diverse IPC FX Hub to gain reliable and secure access to FastMatch’s three independent matching engines as well as trade lifecycle services.

Lucera Launches Pre-Trade Credit, TCA Tools – Profit & Loss

Lucera has launched two new products to complement their LumeFX platform. 

CME Group Adds New Exchange to Bitcoin Index – Coin Desk

CME Group has added China-based digital currency exchange OKCoin to its bitcoin pricing indexes, first announced in May.

Deutsche Bank Said to Face Hurdle Moving China Sale Proceeds – Bloomberg

China’s efforts to limit capital outflows that could weaken its currency are creating a potential headache for Deutsche Bank, which is selling a $3.9 billion stake in a Chinese lender and seeking permission to move proceeds offshore.

JP Morgan Joins ICE Clear Singapore – Trade

JP Morgan has joined ICE’s Singapore-based clearing house as its first US clearing member.

Market Savvy

Asia Currencies Lose Momentum as Doubts Rise Over OPEC Deal – Reuters

Most emerging Asian currencies retreated as doubts surfaced over OPEC’s agreement to curb oil production and as investors stayed wary of adding bullish bets ahead of the US presidential election.

Pound Continues to Lurk Around Post-Brexit Lows – International Business Times

The pound continued to trade lower against a basket of global currencies in the absence of major guiding macroeconomic indicators and Foreign Secretary Boris Johnson’s latest quip that Brexit talks were likely to start early next year.

CAD Strengthens the Most in Nearly Four Weeks as Oil Soars – Reuters

The Canadian dollar strengthened the most in nearly four weeks against its US counterpart as oil prices soared on a deal by major oil producers to limit output.

Zloty Leads Currency Easing, Poland Dismisses Finance Minister – Reuters

The zloty led a weakening of Central European currencies as Polish Prime Minister Beata Szydlo dismissed Pawel Szalamacha as finance minister in a government reshuffle.