China Central Bank to Clamp Down on Forwards Trading to Curb Yuan Depreciation – Reuters
China’s central bank plans to tighten rules on trading of currency forwards from October, sources with direct knowledge of the matter say, in a move to curb speculation and volatility after a shock devaluation of the currency last month.
Yen, Euro Buoyed by Risk Aversion as China Worries Weigh – Reuters The safe-haven yen and the low-yielding euro rose on Tuesday on concerns about China’s economy, as investors unwound bets against the two currencies widely used to fund positions in riskier assets.
The Challenge of Pricing FX Risk – Tabb Forum A highly volatile base currency can trigger an exorbitant amount of risk across any portfolio. As global FX volumes rise, asset managers and hedge funds are seeking alternative ways to establish accurate prices to better understand exposure. But this presents a real strain on existing operations.
Blythe Masters Tells Banks the Blockchain Changes Everything – Bloomberg The banker who helped give the world credit-default swaps wants to upend finance again—this time with the code that powers bitcoin.
Wall Street Vs. Silicon Valley – Profit & Loss (subscription) Silicon Valley is coming,” JP Morgan CEO, Jamie Dimon, rather portentously warned in a letter to shareholders in April. He went on to explain that there are currently hundreds of start-ups out on the West Coast with lots of intellectual and economic capital that are working on providing alternatives to traditional banking services.
Currency Hedge Funds Report Gains after Volatile July – Profit & Loss Currency hedge funds posted an aggregate gain in July, according to the latest data from Parker Global Strategies, when the Federal Reserve took a more upbeat tone on the US economy and Greece made a last minute deal on its debt.
Economists Are Split Over Whether the Fed Will Raise Rates in September – Bloomberg US central bankers face their toughest policy call in years in September – raise interest rates or wait a little longer. Whatever the decision, about half of economists will be wrong.