Top Headlines

BTMU Settles with CFTC Over Spoofing Charges – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) issued an order filing and settling charges against The Bank of Tokyo-Mitsubishi UFJ (BTMU) for engaging in multiple acts of spoofing in a variety of futures contracts.

Sterling Treads Water After Drop; Outlook Bearish – Reuters

Sterling steadied after posting its biggest four-day decline in two months against the dollar as investors grew bearish about the outlook of the economy.

Dollar Inches Back Down After Jobs Boost on Fed Hike Doubts – Reuters

The dollar inched down for a second day, still holding on to most of the gains made on Friday after strong US jobs data even though investors remain unconvinced that the Federal Reserve will hike rates again this year.

China Gives Up Global Role for a Stronger Yuan – Wall Street Journal (subscription)

China has chased the yuan bears back into the woods for the time being – but at the cost of its drive to make its currency a real rival to the dollar.

Hong Kong Reliant on Easy Money – Financial Times (subscription)

The Hong Kong dollar’s slide – Monday took it past HK$7.82 for only the third time in 10 years – is a side-effect of years of loose monetary policy.

Dislocation Policy: LCH Exodus Risks CCP Basis Blow-Out – Risk (subscription)

Questions about post-Brexit status of UK CCP could spark mass migration – and severe volatility.

TP Icap Cuts 175 Jobs as Deal Integration Begins – Financial Times (subscription)

TP Icap, the world’s largest interdealer broker, said it had cut 175 jobs in the first six months of the year as it began to integrate the ICAP broking business it bought for £1.3bn.

Equities Are Less Volatile Than Major World Currencies – Bloomberg

It appears that investors have decided that low-yielding currency returns are riskier than equities, inverting the typical risk/reward relationship.

Regulatory News

UK Fights Rearguard Action on EU Financial Laws Before Brexit – Bloomberg

The UK may be headed for the door, but its lawmakers and civil servants in Brussels still have their work cut out as the European Union overhauls financial-services rules that will affect firms in London even after Brexit.

Tighter EU Curbs Urged on Winding Down Banks – Financial Times (subscription)

Europe’s top official in charge of winding down failed banks has urged the EU to tighten restrictions on when governments can pump money into stricken lenders, in response to recent cases in Italy where senior bondholders were spared losses.

Trillions in Stock and Derivative Trades at Risk Over New EU Rules – Bloomberg

Trading in blue-chip stocks and trillions of dollars of derivatives could be thrown into turmoil by the European Union’s MiFID II regulatory overhaul unless the bloc acts fast to give financial firms full freedom to transact in foreign markets.

Wide Differences Exist in European Fintech Regulation, EBA Says – Central Banking

Major differences exist between the way Europe’s various national financial regulators treat financial technology (fintech) firms, the European Banking Authority (EBA) says.

‘Bitcoin Regulation Act’ Introduced in South Korea Bans MLMs –

Legislation outlining the regulatory framework for digital currencies including bitcoin in South Korea has been introduced by lawmaker Park Yong-jin.

Company News

ACIFMA Extends Search for Next MD – Profit & Loss

ACI – The Financial Markets Association says it is extending the search window for its next managing director.

Citi Tops Swaps Clearing Ranks for H1 2017 – The Trade

CFTC data of clearing banks showed Citi held almost $18 billion in client margin for swaps clearing as of 30 June. 

JPMorgan Backing Technology to Transform Trading Desks – South China Morning Post

Foreign exchange trading is one of the sectors where electronic trading an execution can make the greatest difference.

Tradeweb’s Mifid Bilateral Trading Plans Draw Fire – Risk (subscription)

New process will class privately executed trades as on-venue to satisfy trading obligation.

Market Savvy

Rand Poised to Surge If Zuma Loses Secret No-Confidence Ballot – Bloomberg

The South African rand could surge if President Jacob Zuma is ousted by a motion of no confidence in the nation’s parliament, though gains would reverse if Zuma survives the vote, analysts say.

EM Asia FX Upbeat on China Foreign Reserves Data and Muted Dollar – Reuters

Asian currencies were upbeat after a strong foreign reserves report from China set an optimistic tone as investors readied for this week’s flood of data from China and the United States.

Top-Performing Arab Economy Balks at Currency Float on Egypt – Bloomberg

Moroccans buy dollars, euros on fears of dirham will weaken.