Top Headlines

China, US Commit to Refrain from Competitive Currency Devaluations – Reuters

China and the United States on Sunday committed anew to refrain from competitive currency devaluations and China said it would continue an orderly transition to a market-oriented exchange rate for the yuan.

FSB Publishes Update on Misconduct Reform – Profit & Loss

The Financial Stability Board has published its second report on progress in its workplan of Measures to reduce misconduct risk that it agreed in May 2015.

Ex-Morgan Stanley Duo Set to Launch First FX Analytics Product – Financial News (subscription)

Two former senior members of Morgan Stanley’s foreign exchange team are set to launch a widely-anticipated transaction cost analysis service for the FX market next week, nine months after they left the US bank.

Yuan’s Big-Money Bears Are Killing Rallies Before They Take Hold – Bloomberg

Yuan bears are turning rallies in the Chinese currency into increasingly short-lived affairs.

Financial Markets Confused Over Federal Reserve’s Next Move – Financial Times (subscription)

The latest batch of US employment data has proved a real Rorschach test for financial markets, with bonds, currencies and stocks veering in different directions as investors mull the Federal Reserve’s next move. 

The Shadow Hanging Over Gilts Historic Rally – Financial Times (subscription)

Gilts have had a stellar 2016 so far but signs of economic resilience in the UK are stirring unease.

Regulatory News

Debelle Appointed Deputy Governor of RBA – Profit & Loss

Guy Debelle has been named as deputy governor of the Reserve Bank of Australia as part of the changes taking place as current governor Glenn Stevens steps down in favour of new incumbent Phillip Lowe.

ISDA Live with SIMM – Profit & Loss

The International Swaps and Derivatives Association last week announced the live launch of the ISDA Standard Initial Margin Model (SIMM), an industry standard methodology that it says is being widely adopted by market participants to calculate initial margin for non-cleared derivatives trades.

CFTC Relief Caps Day of Swaps Margin Mayhem – Risk (subscription)

Banks unable to face up to 50% of counterparties due to custodian bottlenecks. 

FT Explainer: Keeping Up with High-Frequency Traders – Financial Times (subscription)

Market regulators charged with overseeing orderly trading are fighting a losing battle when it comes to keeping up with super fast technology.

Company News

With Nowhere to Go, This $64 Billion Asset Manager Bets on VIX – Bloomberg

With massive stimulus inflating stocks and bonds, the tactical allocation team at Norway’s largest bank has opened a bet on volatility for the first time.

Market Savvy

Pound Rally Leaves Bears Unmoved as Brexit’s Threats Linger – Bloomberg

The pound’s longest winning run since the UK shocked financial markets by deciding to leave the European Union is failing to shake strategists, who expect a slide to its weakest level in three decades.

Dollar Dips vs Yen After Bank of Japan’s Kuroda Disappoints Easing Bets – Reuters

The dollar slipped against the yen on Monday, after the head of the Bank of Japan disappointed those investors who had expected a clear signal that monetary policy would be eased further this month.