Top Headlines

CLS to Host Public Register for FX Global Code – Profit & Loss

CLS Group has thrown its hat in the ring to host a public register listing those firms that have signed the Statement of Commitment to the FX Global Code.

Dollar Index Holds Three-Week High Ahead of Fed Minutes – Financial Times (subscription)

It’s back to business as usual. The Federal Reserve and its thinking about the pace of the US rate-tightening cycle is back at the centre of attention, as the stand-off between Washington and North Korea continues to cool.

Pound Picks Up After Improved Jobs Figures – Financial Times (subscription)

Sterling is bouncing back after a grim start to the day after data showed UK unemployment in the second quarter fell to a 42-year low, beating analyst expectations as basic wage growth also improved.

VM Change Helps Barclays Cut Derivatives by $113bn – Risk (subscription)

Barclays has become the latest bank to confirm it is treating variation margin as the settlement of a cleared derivative, rather than as collateral – a move that contributed to an £87 billion ($113 billion) drop in the size of the bank’s derivatives assets, according to its second-quarter results.

FCA Warns Interactive Brokers on Market Abuse – FOW (subscription)

The warning concerns possible breaches in 2014 and 2015.

In the FICC of it – Cryptocurrencies: Watch This Space – Profit & Loss (Podcast)

As P&L’s resident cryptocurrency enthusiast I’m excited by some of the developments that have occurred in this space over the past few months, because it could signal the start of these digital assets moving towards the financial mainstream.

JP Morgan Has a New Way of Forecasting the Australian Dollar – Sydney Morning Herald

Currency experts have had to overcome their pride, and their persistently wayward Australian dollar forecasts, and instead develop a different model for charting the direction of the local currency as it moves against the US dollar.

Regulatory News

Flood of EU Firms Could Swamp Bank of England’s Staff – The Telegraph

A tide of EU finance firms may need to apply for licences to operate in the UK after Brexit, potentially leaving the Bank of England’s resources stretched thin, a top regulator has warned.

US Agencies Provide Respite with Variation Margin Changes – The Trade

Derivatives trading bodies are pushing for US agencies to ease rules on how client cash margin held by banks is calculated as part of their capital exposures.

In a Bind: How CCAR Constrains US Bank Strategy – Risk (subscription)

Fed’s stress tests are forcing banks to cut loan portfolios and trading assets.

Stanley Fischer, Fed Vice-Chair, On the Risky Business of Bank Reform – Financial Times (subscription)

Having led a worldwide effort to strengthen financial regulation after the crisis, US politicians are now attempting to throw things into reverse – something Fischer bluntly describes as “extremely dangerous and extremely short-sighted”.

Banco Popular Swaps Payout Delay Shows Snag in Market Overhaul – Bloomberg

Default swaps settlement stalled after government intervention.

Company News

Hedge Funds Cutting Fees: BarclayHedge Survey – Profit & Loss

A BarclayHedge survey of 134 hedge fund managers in July has revealed that 36.6% of survey respondents currently offer reduced or no fee alternatives to their investors and a further 20% plan to offer lower or no fee products in the next three-to-six months.

‘Father of Financial Futures’ Seeks Cryptocurrency Hardware Patent – Coin Desk

A US economist and businessman known for his work in spearheading the early development of futures contracts is seeking a cryptocurrency patent.

Prudential to Offload Broker-Dealer Network in US – Financial Times (subscription)

Days after announcing a merger of its two big UK businesses, potentially putting it on a path to a dramatic breakup, the insurer said today that it has sold its independent US broker-dealer network to LPL Financial, for a maximum of $448m.

Market Savvy

Swedish Krona Finally Takes Off – Financial Times (subscription)

Currency follows Swissie flight path to reach strongest level since March.

Asian Currencies Drift Lower; Indonesian Rupiah Hits Five-Week Low – Reuters

Asian currencies drifted lower as the US dollar held onto its gains after upbeat retail sales data suggested the economy continued to gain momentum in the third quarter, reinforcing the possibility of another rate hike by the Federal Reserve this year.

Yemen’s Central Bank Floats Riyal Currency: Circular – Reuters

Yemen’s central bank has floated the country’s currency, instructing banks to use the market rate for the riyal instead of a fixed rate, according to a circular.