Top Headlines

Banks and Prop Shops Expect More Trading Tie-Ups – FX Week (subscription)

Bank and non-bank dealers expect electronic trading to continue spreading – bringing the two groups of firms into more frequent competition, but also creating chances for them to work together.

BoE Markets Boss: Diversity in FX is an Imperative – FX Week (subscription)

Given its importance at the heart of the global financial system, it is vital that the foreign exchange industry upholds the highest standards – including promoting inclusivity in the appointment of its leaders and managers, particularly women, remarked Andrew Hauser, executive director for markets at the Bank of England.

Deutsche Bank Turns to Goldman Sachs for New Head of FX Sales – Financial News (subscription)

Deutsche Bank has hired Ernesto Mercadante, a senior Goldman Sachs executive, to replace its recently departed head of foreign exchange sales in Europe. The move shows the German lender is still prepared to recruit for core business lines, despite an impending radical restructure of its investment bank.

Is Spoofing Fraud? (opinion) – Profit & Loss

Spoofing is a strange thing; some could argue it is part of a best execution policy when trying to fill a very large order, others that it is criminal activity, and both would have valid points – but is it fraud?

Regulatory News

Regulators Will Be Watching Closely as Banks Do Away with Libor – Financial Times (subscription)

UK market regulators on Thursday gave little comfort to senior bank executives who might have been hoping that they can soon stop worrying about Libor. Edwin Schooling Latter, head of markets policy at the Financial Conduct Authority, warned there would be further extensive questions for banks as they prepare for life after the lending rate.

Resented Elsewhere, Mifid Finds Love at Esma – (subscription)

A huge cache of data has helped Esma spot market abuse and inform policy, the head of market data policy says.

Bank of England’s Ambitious Look at Regulatory Reporting – WatersTechnology (subscription)

The aftermath of the financial crisis has seen a massive increase in reporting requirements for trading firms. This has also created unique challenges for the regulators themselves, as they need to be able to take in, store and analyze this sea of information – or else what’s the point? As a result, the Bank of England is exploring new technologies such as artificial intelligence and cloud storage to get to grips with these requirements.

SEC Proposes to Align Margin Requirements for Security Futures with Requirements for Similar Financial Products – SEC

The Securities and Exchange Commission (SEC) has proposed to align the minimum margin required on security futures with other similar financial products.  The proposal – which, if the CFTC votes in favor of, would be a joint CFTC-SEC proposal – would set the minimum margin requirement for security futures at 15 percent of the current market value of each security future.  

Crypto News

Bitcoin’s Wild June is a ‘Slam Dunk’ Against Crypto ETF Approval – Bloomberg (subscription)

Crypto enthusiasts weren’t the only ones watching Bitcoin’s meteoric ascent last month. The likelihood of a Bitcoin exchange-traded fund gaining approval from the US regulator has declined thanks to the cryptocurrency’s wild price swings in June.

Cboe Might Want to Reconsider its Exit from Bitcoin Futures – Finance Magnates

Ever since Cboe announced that it would be closing its Bitcoin futures markets, CME’s BTC futures trading volume has exploded.

Roubini Wants the World to See His Latest Tirade Against Crypto – Bloomberg

Nouriel Roubini, the CEO of Roubini Macro Associates, called on BitMEX CEO and co-founder Arthur Hayes in a Twitter post to release the video of a debate between the two, dubbed by the organizers as the “Tangle in Taipei,” at the Asia Blockchain Summit. Hayes controls the rights to the footage of the debate and didn’t allow it to be streamed live. The audience was also barred from recording video of the event.

Euronext Invests €5 million in Tokenisation Platform – The Trade Crypto

Euronext has invested a total €5 million in a tokenisation platform that is betting on widespread tokenisation of traditional financial assets. The deal means that Euronext now owns a 23.5% stake in Luxembourg-based FinTech firm, Tokeny Solutions, as well as strong governance reputation of the company.

Company News

Changes at the Top of Sucden Financial – Profit & Loss

Sucden Financial has announced an organisational change at the top of the business with current CEO Michael Overlander moving to a non-executive chairman role and Marc Bailey, deputy CEO, stepping up to the head of the business.

Refinitiv Onboards FX Trading Clients to Dublin MTF – The Trade

The Dublin multilateral trading facility, which will cover both the FXall and Forwards Matching trading units, will allow Refinitiv to continue providing services to its clients based in the European Union regardless of the outcome of Brexit.

Traiana Looks to Automate Post-Trade Processes for Equity Swaps Market – The Trade

Risk management services provider Traiana has unveiled a new service that aims to fully automate post-trade lifecycle management of the equity swaps market.

Former Deutsche Bank Trader Cleared of Euribor Fixing – Financial News

Andreas Hauschild, a former managing director at the German bank, has been found not guilty of conspiracy to defraud over the rigging of the Euro Interbank Offered Rate, or Euribor, during the height of the financial crisis, the UK’s Serious Fraud Office said in a statement.

TP Icap Digs for Data Treasure on Faraway Shores – WatersTechnology (subscription)

UK-based interdealer broker TP Icap is upgrading connectivity to regional broking centers to support its continuing “treasure hunt” for internal sources of as-yet unexploited data that may be restricted to specific regions or user types, but which have the potential for wider adoption if exposed via new technologies and distribution channels.

Market Savvy

Sterling Heads for Large Weekly Loss after Poor Data, Bond Rally – Reuters

The British pound dipped on Friday and headed for a more than 1% drop over the week against the dollar after poor economic data and a rise in expectations that the Bank of England will cut interest rates. Sterling is also headed for its ninth consecutive week of losses against the euro. Analysts say the outlook for the currency is worsening.

Dollar Still a Force to Reckon With, at Least for This Year: Reuters Poll – Reuters

Despite being wrong-footed for years, strategists are still clinging on to their view of a weaker dollar in a year. But analysts since the beginning of the year have repeatedly trimmed how much other major currencies will gain in 12 months, reflecting weakness in economies outside of the United States. They now see the euro climbing 3.5% and Japan’s yen about 2% against the dollar in the coming year.

Gold Heads for the Longest Stretch of Gains in 8 Years – Bloomberg (subscription)

Gold is headed for the longest stretch of weekly gains since 2011 as investors count down to the release of a highly-anticipated US jobs report that could provide clues on the Federal Reserve’s interest rate path.

The ABCs of FX – Tabb Group

Tabb Group spells out everything you always wanted to know about the FX market but were afraid to ask.