Top Headlines
CLS Releases Analysis of Brexit-Related Events – Profit & Loss
One week after releasing analysis of activity around the UK election, and as the first anniversary of the vote approaches, CLS has released analysis of Cable spot volumes during Brexit-related events.
Sterling Hits One-Week Low as Carney Says Not Time for Rate Rise – Reuters
Sterling fell by almost a full cent against the dollar after Bank of England Governor Mark Carney said now was not the time to raise interest rates, dashing some investors’ expectations the central bank had shifted in that direction.
The dollar edged higher as investors looked ahead to a week of public appearances by Federal Reserve officials.
Gaming the Yuan: Making Money on a State-Controlled Currency – Bloomberg
One of the world’s least volatile currencies, the yuan was already a challenging trade before China’s central bank started stepping up control.
Protectionism Hurts China’s Financial Sector, Opening Helps: PBOC’s Zhou – Reuters
Healthy financial institutions are a prerequisite for preventing a financial crisis, and further opening will help build a strong and competitive financial sector, China’s central bank governor Zhou Xiaochuan said.
Blurred Lines: The New Face of Market Making – Profit & Loss (subscription)
As the distinction between bank and non-bank liquidity continues to blur in FX, panellists at Forex Network New York discussed how market participants should differentiate between different liquidity providers.
Regulatory News
Carney Calls for New Cooperation on Clearinghouses Post-Brexit – Bloomberg
Bank of England Governor Mark Carney called for a new system of cooperation between the UK and the European Union over derivatives clearinghouses to prevent more expensive and fragmented markets post-Brexit.
Numbers Game: MiFID Guidance Adds to Swaps Trading Confusion – Risk (subscription)
Market participants say using strike price to determine trading obligation will be impossible.
Company News
Brexit Forces Some US Banks to Consider Shifting Funds Out of UK – Financial Times (subscription)
Moving transactions to rival hubs could affect much of their investment banking work.
Sucden Implements SmartTrade’s FX Platform – Profit & Loss
Sucden Financial has implemented SmartTrade Technologies’ fully hosted FX solution, LiquidityFX.
IHS Markit Adds Three to FX Team – Profit & Loss
IHS Markit has hired Randy Hebert as director, FX business development, APAC; Stuart Crooks as director, FX business development, EMEA and Steven Singh as product development manager, FX trading.
RMB Internationalisation: Opportunities and Challenges – Profit & Loss
Celent has released a report today that documents the progress being made in the internationalisation of the renminbi (RMB), and outlines the opportunities that this represents for market participants, as well as the challenges it presents.
Redline Supports Thomson Reuters Feed – Profit & Loss
Redline Trading Solutions has announced a new InRush feed handler for the binary multicast feed now being rolled out on the Thomson Reuters FX Matching platform.
CME to Pass on Ice CDS Administration Charges – Risk (subscription)
Clearing house to hike CDS index trade fees from July after Ice’s determinations committee takeover.
Market Savvy
South African Rand Slides on Fears for Central Bank Independence – Financial Times (subscription)
South Africa’s rand fell and sovereign bond yields jumped after the country’s anti-corruption watchdog advised president Jacob Zuma to shift the focus of the central bank’s mandate away from targeting inflation.
Brazilian Stocks Rise, Led by Embraer; Mexican Peso Slips – Reuters
Brazilian stocks rose, supported by planemaker Embraer, while the Mexican peso slipped from a 13-month peak after comments by a Federal Reserve official supported bets of further US interest rate hikes.
Forint Steady Ahead of Rate Meeting, Stocks Edge Lower – Reuters
The Hungarian forint held steady ahead of a Tuesday policy meeting by the National Bank of Hungary (NBH), when it is expected to keep its base rate on hold but decide to pump more liquidity into interbank markets.