Top Headlines

Cartel Traders Agree to US Extradition – Profit & Loss

Court documents filed in New York this week indicate that three members of the notorious “Cartel” chat room have agreed to extradition to the US to be arraigned on charges of conspiracy to rig FX markets.

EU to Tighten Grip on Euro Clearing After Brexit: Source – Reuters

The European Union plans to give itself powers to move euro clearing business away from London’s financial sector to the EU after Brexit and to adopt a model closer to that operated by the United States, a source close to the situation said.

City Weighs Up Costs of European Ruling on Euro Swap Clearing – Financial Times (subscription)

Scenarios range from minimal changes to substantial increase in expense for customers. 

No Boost for Sterling from High UK Inflation Numbers – Reuters

Sterling steadied around $1.27 after UK inflation numbers came in above forecast, further complicating an outlook that shows the economy slowing but prices rising much faster than the Bank of England’s two percent target.

Pound’s Soft Brexit Hopes Drowned Out by Mess at Westminster – Financial Times (subscription)

A hung parliament leaves sterling once again at the mercy of events in Westminster – a position that has become familiar since the vote for Brexit almost a year ago.

Dollar Slips with Central Banks in Focus – Wall Street Journal (subscription)

US Fed is meeting Tuesday and Wednesday and is expected to raise interest rates.

Loonie Extends Rally as Funds Cover Shorts on BOC Comments – Bloomberg

The Canadian dollar outperformed all its Group-of-10 peers, extending gains as Asian funds bought in response to hawkish comments from Bank of Canada’s Senior Deputy Governor Carolyn Wilkins.

Survey: Geopolitics the Biggest Challenge for PLN – Profit & Loss

Polish FX executives say that geopolitics is the biggest issue facing its country and currency this year, according to the results of a Bloomberg FX survey.

Regulatory News

Trump Team Proposes Broad Rethink of Financial Rulebook – Wall Street Journal (subscription)

The Trump administration proposed a wide-ranging rethink of the rules governing the US financial sector in a report that makes scores of recommendations that have been on the banking industry’s wish list for years.

Benchmark Fallbacks Should be Regulated, Says Industry – Risk (subscription)

Fears of basis risk unless all users are obliged to write backup rates into legacy contracts.

Wall Street’s Self-Regulator Blocks Public Scrutiny of Firms with Tainted Brokers – Reuters

The dozen FINRA flags examined by Reuters include regulatory sanctions for misconduct, employment terminations after allegations of misconduct and payments by firms to settle customer complaints.

Why China No Longer Fears the Fed – Financial Times (subscription)

PBoC expected to hold rates despite narrowing interest rate differential with US.

Company News

Northern Trust Launches FX Algo Suite – Profit & Loss

Northern Trust has launched a suite of FX client execution algorithms, aimed at allowing clients to manage their FX exposure with an enhanced level of control and transparency.

Thomson Reuters And Symphony Announce Strategic Partnership – Mondovisione

Thomson Reuters and Symphony Communication Services have joined forces to foster open collaboration and information sharing across the financial services industry.

Davie to Head Rates at LCH – Profit & Loss

Michael Davie has been appointed global head of rates for LCH Group, effective immediately.

Boulos Latest Big Name to Join BNY Mellon – Profit & Loss

Profit & Loss understands that Darren Boulos has joined Bank of New York Mellon as head of FX sales and trading for Asia Pacific.

Chui Joins ADS Securities – Profit & Loss

ADS Securities has announced the appointment of Fabian Chui as head of brokerage risk.

Adams Exits ParFX – Profit & Loss

Campbell Adams has left Tradition’s ParFX where he was head of market.

Market Savvy

Asian Currencies Quiet Ahead of Fed Moves; Thai Baht Near Two-Year High – Reuters

Most Asian emerging currencies moved only marginally, as traders awaited a Federal Reserve meeting that is expected to raise the US benchmark interest rate and signal the pace of further hikes in 2017.

Krona Rallies After Strong Swedish Inflation Figures – Financial Times (subscription)

Sweden’s krona is on track for its best day against the euro in three months, after new data showed inflation was stronger than expected in May.

Qatari Riyal Touches Fresh Low as Pressure on Peg Grows – Financial Times (subscription)

Pressure on Qatar’s currency peg grew as the diplomatic crisis with its Gulf neighbours entered its second week, with the riyal falling to new 19-year lows despite the government’s public commitment to defending the exchange rate.