Top Headlines

Commissioner Wetjen to Step Down from CFTC
Commissioner Mark Wetjen has announced his resignation from the US Commodity Futures Trading Commission, effective August 28, 2015.

China Strengthens Yuan against US Dollar, Ending Three Days of Falls – South China Morning Post
China’s central bank on Friday raised the value of the yuan against the US dollar by 0.05 per cent, the national foreign exchange market said – ending three days of falls after a surprise devaluation.

FX Civil Court Settlements Top $2 Billion – Profit & Loss
The agreement of settlements worth over $2 billion in the civil antitrust litigation case against a number of major banks for FX market abuse was announced in a New York court on Thursday.

A New Fast Lane for Traders Spurs Plan to Thwart Exploiters – Bloomberg
Icap is introducing a speed bump on its EBS currency market that prevents some customers from taking advantage of the rest by using a new, faster fibre-optic cable connecting New York and London. The decision by Icap contrasts with how exchanges have catered to high-speed traders for years.

Corporates Face Paper Structured FX Losses from RMB Slide – Asia Risk (subscription)
A move by the People’s Bank of China (PBoC) to devalue the renminbi by cutting its reference rate by 1.9% has caught corporates by “surprise” and has already pushed up to 15% of structured forward hedges out-of-the-money, with the market fearing the currency could fall further.

Greek Lawmakers Back Rescue Package after All-Night Session – Bloomberg
Greek legislators approved a bailout package that may unlock as much as 86 billion euros and help the nation avoid a default next week when it has to make a payment to the European Central Bank.

ECB Prepared to Tweak QE If Needed as Recovery Disappoints – Bloomberg
The European Central Bank is ready to adjust its quantitative-easing program to respond to any market turbulence amid “unusually low” inflation and “disappointing” economic growth in the euro area.

Currency-Hedged ETFs Soften Blow of Dollar’s Rise – Financial News (subscription)
Investors are pouring billions of dollars into a fashionable corner of one of the fastest-growing areas on Wall Street: exchange-traded funds that aim to protect investors against the return-crimping impact of a rising dollar.

US Banks Extend Lead Over European Counterparts – Financial Times (subscription)
US banks are stretching away from their European rivals in global investment banking, taking advantage of strategic upheavals and concerns over capital to pile on market share.

Aggressive HFT Stable in Major Currencies – FX Week (subscription)
High-frequency trading in FX remains below the levels seen in equities, according to research from AbleMarkets.


Regulatory News

Esma on the Derivatives Markets: The Key Takeaways – Financial News (subscription)
Europe’s primary markets regulator has responded to a review of Europe’s derivatives rulebook with a range of proposals that could have a profound impact on how the market operates.

Esma Demands Third Country Process Review – FOW (subscription)
The European Securities and Markets Authority (Esma) has told the European Commission it needs to “rethink the entire third country equivalence and recognition process” to better respond to differences between jurisdictions. Esma on Thursday published four papers focusing on the functioning of the European Market Infrastructure Regulation (Emir) as part of the EC’s ongoing review of the regime.

Esma Urges EC to Bin Frontloading – Risk Magazine (subscription)
A controversial requirement to retroactively clear over-the-counter derivatives trades should be scrapped, the regulatory body responsible for drafting the rule has recommended. The so-called frontloading obligation set out in the European Market Infrastructure Regulation (Emir) forces banks to clear OTC derivatives traded up to four months before the start of mandatory clearing, while financial counterparties may have to retroactively clear seven months’ worth of legacy trades.

CFTC Issues No-Action Letter on Cross-Border Swaps – Profit & Loss
The US Commodity Futures Trading Commission (CFTC) has issued another no-action letter extending relief to non-US swap dealers from certain transaction-level requirements under the Commodity Exchange Act (CEA).

Commentary: Don’t Expect New City Rules to Stop Another Financial Crisis – The Telegraph
The net has been cast even wider, but that doesn’t mean that it isn’t riddled with holes. Thousands more insurance workers and foreign bankers will be overseen by the UK Financial Conduct Authority and the Prudential Regulation Authority, now that the City watchdogs have expanded their plan to improve accountability in the financial services sector.

China’s Regulators Told to Promote Transparency, Reduce Complexity – Reuters
A global financial watchdog has warned China’s regulators to work together more closely, clearly define their roles, and promote transparency to improve risk management in the financial system.


Company News

SGX Gets Boost from RMB Devaluation – Profit & Loss
Singapore Exchange (SGX) has reported record trading levels in USD/CNH futures after the People’s Bank of China devalued the renminbi this week.

Insch Teams Up With Valbury – Profit & Loss
Insch Capital Management has entered into a commercial joint venture with Valbury Capital, the London-based FCA regulated broker.

Thomson Reuters Increases Market Data Frequencies for FX – Profit & Loss
Thomson Reuters has unveiled plans to increase the frequency of data updates in selected currency pairs for customers accessing its Matching venue via their API connections.


Market Savvy  

Is China Really Committed to Market-Oriented Reform?
Profit & Loss
China’s central bank vice-governor Yi Gang says the country will quicken the opening of its foreign exchange market and aims to attract more foreign investors as it liberalises its financial markets.

China Puts September Fed Rate Lift-Off in Doubt
Financial Times
China’s currency move is turning the mood of the market against an imminent Fed lift-off. If the mood was reasonably gung-ho last week, it had a whiff of draft-dodging by the time the implications of the strategic shift in the People’s Bank of China’s exchange rate policy sank in.

Greece Crisis Proves the Need for a Currency Plan B
The Guardian
The recent Greek capitulation under pressure from other euro member countries, led by Germany, demonstrates that euro members have de factoceded sovereignty over fiscal policy to the EU. While this arrangement may be acceptable to some countries, ­­perhaps even Greece,­­ it will be resisted by others.

Eurozone Economy Slows as France Stalls and China Risks Loom
Economic growth in the euro zone slowed in the second quarter as France stagnated and Italy lost momentum, held back by an uncertain global outlook that is even weakening investment in powerhouse Germany.


Press Releases

CME Group’s New FX Incentives Programme
Members are advised of the introduction of a new 12 month FX Market Making programme* to continue development of liquidity in the FX Futures contracts.

Asia’s First Trading-Atrium Announces Prime Of Prime FX Liquidity Pool Market Access Capability
Neo & Partners Global (NPG), a Singapore enterprise that specialises in offering electronic trading solutions and creator of Asia’s first Trading-Atrium, announces a collaboration with Blackwell Global to establish a Prime of Prime FX Liquidity Pool market access capability as part of NPG’s 360° Business Eco-system.


Industry Events