Top Headlines
Bank of England Turns to Fintech for Atomic Settlement – Profit & Loss
The Bank of England says it is looking to explore synchronisation of payments in its RTGS (Real Time Gross Settlement) service, including cross-border payments relating to international currency transactions.
Buy Side Using Two-Way Prices in Bid to Hide Trade Intent – Risk.net (subscription)
European buy-side firms are increasingly asking dealers to quote two-way prices for interest rate swaps, in an attempt to hide their plans from the market.
Hedge Funds Shake Off Tech Decline: BarclayHedge – Profit & Loss
Hedge Funds gained 0.54% in July according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 3.72% increase in the S&P 500 Total Return Index. Year to date, the Barclay Index is up 1.04%, while the S&P has gained 6.47%.
Turkey Currency Crisis: Strategists See Four Ways Out – Financial News
As international investors punish Turkey’s lira, the country has to consider its options to stop this currency crisis in its tracks. Strategists see four ways out.
Regulatory News
FIA Groups Urge CFTC to Maintain De Minimis Swap Threshold – Profit & Loss
FIA and the FIA Principal Traders Group have submitted a detailed letter in response to a US Commodity Futures Trading Commission (CFTC) proposed rulemaking that urges the Commission to retain the current $8 billion de minimisthreshold for swap dealer registration.
CFTC Delivers on ‘Project KISS’ with Proposal to Streamline Regulations for Swap Dealers – Reuters
Since taking the helm of the US top commodities and derivatives regulator, Christopher Giancarlo has made his ambitions clear to refocus and reinterpret the mission of the Commodity Futures Trading Commission.
Dealers Seek FRTB Carve-Out for Libor Transition – Risk.net (subscription)
Banks are planning to ask regulators for capital relief during attempts to move roughly $370 trillion in swaps notional away from Libor to new interest rate benchmarks.
Mifid II DEA Rules “Suitably Clear”: Legal Expert – Global Investor (subscription)
Further guidance on direct electronic access authorisation rules is unlikely, an associate at law firm Fieldfisher says.
Asset Managers Grind Forward with Crash-Out Brexit Plans – Financial News (subscription)
Stunned at the lack of progress in negotiations, some fund managers are slowly activating their contingency plans.
Crypto News
Bitcoin Dips Below $6,000 Amid Cryptocurrency Sell-Off – CNBC
Bitcoin fell below $6,000 late Monday – for the first time since June – against a backdrop of cryptocurrencies declining in value.
Winklevoss Undeterred by Wall Street’s Slow Embrace of Crypto – Bloomberg
While demand has waned amid this year’s plunge in the value of digital currencies and the reluctance exhibited by US. regulators, the twin brothers who operate the Gemini Trust Co. exchange say they’re continuing to grow the business even though most large Wall Street investors aren’t on board yet.
Crypto Funds Still Launching at Record Pace Despite Bear Market – The Trade Crypto
The bear market hasn’t deterred new fund launches this year, according to statistics from Crypto Fund Research.
Bitcoin Investing Is Creating Tax Predicaments for Hedge Funds – Bloomberg
Dozens of hedge funds investing billions of dollars in cryptocurrencies don’t know if they’re calculating their taxes correctly, which may be a problem now that US authorities have said they’re going to be scrutinizing virtual currencies.
While the world of crypto still very much resembles the digital Wild West for big financial firms, there is hope that the cryptocurrency market will “go to the moon” once institutional investors join the ranks of high-net-worth individuals and hedge funds in the space (currently there are over 400).
Crypto Trading Platform Adds BlockTower Capital Co-Founder to Advisory Board – The Trade Crypto
Cryptocurrency trading platform, Caspian, has added BlockTower Capital co-founder Ari Paul to its advisory board, with the investment firm also becoming a strategic partner.
BBOD Launches Hybrid Cryptocurrency Derivatives Trading Platform – The Trade Crypto
A derivatives trading platform for cryptocurrencies has partnered with GMEX Technologies for a new service bridging centralised and decentralised platforms.
Company News
Euronext Moves to Buy Galinov’s Shares – FX Week (subscription)
Euronext has moved to acquire former FastMatch chief executive Dmitri Galinov’s shares in the FX trading platform, for a fraction of the value that the approximately 8% equity is worth, by invoking a termination clause in the former head’s contract. The purchase comes a day after Galinov’s decision to sue the exchange operator.
Banks hope Symphony can engineer a new, super-secure communication superhighway that helps them cut down on Bloomberg terminals.
Cinnober Confirms CEO Departure – The Trade
Exchange and clearing technology provider Cinnober has lost its chief executive officer, who has worked with the company for the past 16 years.
NICE and Cloud9 Technologies Partner for Voice Trading Platform – The Trade
The partnership sees NICE’s trading recording system integrated with the C9 Trader platform so that firms can comply with regulations around recording and retaining voice communications.
Market Savvy
Euro Edges Up, But Threat from Turkey Remains – Reuters
The euro recovered on Tuesday from earlier losses linked to the collapse of the Turkish lira, but investors said the exposure of European banks to Turkey would continue to hound the single currency.
Sterling Nears $1.28 After Surprise UK Unemployment Drop – Reuters
Sterling briefly rose above $1.28 on Tuesday on a weaker dollar and after an unexpected fall in Britain’s unemployment rate helped a struggling pound move away from 13-month lows plumbed last week.
India’s Rupee Hits All-Time Low on Deficit Worries – Financial Times (subscription)
India’s currency has fallen more than 8.6% this year, making it one of Asia’s worst performers.
CEE Markets: Currencies Rebound with Turkish Lira, Second-Quarter GDP Strong – Reuters
Central European assets mostly firmed on Tuesday, as emerging markets recovered from Monday’s sell-off and the region’s main economies reported robust economic data.