Top Headlines

BoE Official Says New Global Forex Code May Need Tweaking – Reuters

A new global code to stamp out attempts at rigging the world’s currency markets may need tweaking just months after it was published, a senior Bank of England official said.

Dollar Holds on to Gains After Yield-Driven Short-Covering – Reuters

The dollar held steady, a day after investors trimmed short bets against it on a bounce in US bond yields to generate its second biggest daily gain against the yen this year.

What’s Bad for the Dollar Is Good for This Vanguard ETF – Bloomberg

The US currency’s longest losing streak in more than six years helped whip up demand for emerging-market assets last week.

Pound Takes Off After Inflation Figures Support BoE’s Hawks – Financial Times (subscription)

The pound is on course for one of its best days of the year after inflation data came in ahead of forecasts , offering succor to the more hawkish members of the Bank of England’s finely-balanced Monetary Policy Committee, which meets this week.

Bets on Euro Strength Against Dollar Notch Six-Year High – Financial Times (subscription)

Euro bulls, who have a pretty good year so far, are positioning for further gains, with long bets sitting at their highest level in six years.

Renminbi Extends Slide as PBoC Lowers Midpoint Fix – Financial Times (subscription)

Daily midpoint around which currency can trade is softened by the most in eight months.

Hedge Funds Used to Love Shorting China. Now, Not So Much – Bloomberg

Yuan, Chinese stocks have recovered after 2015 turmoil.

World’s Best Currency Rally Has Russia Inc. Seeking Breather – Bloomberg

The end of the world’s biggest currency rally may be near but some Russian companies say another year of OPEC intrigue and elections won’t put the ruble’s new era of stability at risk.

Beijing and Bitcoin Don’t Mix – Wall Street Journal (subscription)

If bitcoin is an outlaw in the world of currencies, China has until recently been its Wild West.

Regulatory News

US Derivatives Watchdog Eyes Swaps Trading Reform – Financial Times (subscription)

Finalising budget and completing team also on the slate for CFTC chairman Chris Giancarlo.

‘Overly Zealous’ Rules Will Drive Away Traders, CEOs Warn – Financial Times (subscription)

Chief executives of MarketAxess, Nex Group, MTS and Tradeweb urged European policymakers to make late tweaks to new Mifid II guidelines and prevent up to a fifth of the €400bn-a-day bond business moving to other markets around the world, they estimated.

Banks to Benefit Once Basel Saga Reaches Conclusion: SocGen – FOW (subscription)

Basel IV should be considered the final step in the arms race for tighter regulation, analysts at Societe Generale said.

FCA Warns Consumers on Cryptocurrency Fundraisings – Reuters

Intitial coin offerings (ICO), the practice of creating and selling digital currencies to finance start-up projects, are “very high risk” and speculative, the Financial Conduct Authority said.

Libor’s Sunset Sees US Repo Market Cast a Longer Shadow – Risk (subscription)

Concern over structural deficiencies as SOFR chosen to replace key benchmark.

EU Weighs Strategy to Compete in Fintech with Global Rivals – Reuters

European Union finance ministers will discuss this week a plan to attract more financial-technology companies, in a bid to bridge the gap with global competitors and offset the loss of Europe’s main fintech market after Britain leaves the bloc.

Company News 

FX Volumes Decline at Thomson Reuters – Profit & Loss

Thomson Reuters says that spot FX volumes across its platforms declined in August.

Options Group Acquires MCL Search – Profit & Loss

Executive search firm Options Group has acquired MCL Search, an executive search firm based in London specialising in electronic markets (trading and distribution), prime brokerage/clearing and financial trading technology with a focus on currencies and fixed income.

Severi Joins Cürex – Profit & Loss

Andre Severi has joined Cürex Group as managing director.

FlexTrade Integrates Dataminr – Profit & Loss

FlexTrade has announced the integration of Dataminr’s global macro news feed into the FlexTrader EMS.

CMC Markets Integrates with FlexTrade – Profit & Loss

CFD broker CMC Markets has announced the completion of an integration with FlexTrade Systems to enable the wider dissemination of its proprietary CFD liquidity.

MacKinnon Confirmed at CFH Systems – Profit & Loss

As previously reported by Profit & Loss, Alex MacKinnon has joined CFH Systems in Singapore to head up the firm’s newly-opened office in the city state.

Market Savvy

New Zealand Dollar Jumps After Poll Suggests Centre-Right Government Will Hold Onto Power – Financial Times (subscription)

The New Zealand dollar jumped as much as one per cent following the release of a new poll showing the governing National Party could rule alone after the country’s general election on September 23.

Krona Jumps as Swedish Inflation Remains Above Target – Financial Times (subscription)

Despite the bank’s clear reluctance to move, inflation data once again sparked a jump in the currency.

China’s Bitcoin Exchanges Await Clarification, Markets Subdued for Now – Reuters

China’s largest bitcoin exchanges are awaiting clarification from the government following more media reports that Beijing is planning to ban trading of virtual currencies on domestic exchanges, but markets were largely subdued.