Top Headlines

Dollar Cements Gains After Rally; ECB Minutes Eyed – Reuters

The dollar edged higher against a basket of currencies as investors consolidated positions after a recent rise, with minutes from the European Central Bank’s latest meeting likely to be the key event of the day.

Sterling Falls on Heightened Political Uncertainty – Financial Times (subscription)

Sterling took a fall, slipping against both the dollar and the euro, after a calamitous speech by prime minister Theresa May boosted political uncertainty.

Cairn Treasurer Denies Knowing HSBC Would Pre-Hedge Order – FX Week (subscription)

A representative of Cairn Energy has denied knowing HSBC bankers would trade ahead of their multi-billion foreign exchange order, stating the bank would not have won the mandate to carry out the transaction had the corporation known.

European Commission Backs Greater Oversight of Post-Brexit Clearing – The Trade

The European Commission (EC) has backed new powers for the European Central Bank (ECB) to have greater oversight of the euro clearing industry, a key topic of Brexit negotiations.

Inside Traders’ War Games for Trump’s Fed Chair Pick – Bloomberg

Whether Donald Trump follows through on announcing a new Federal Reserve chair in the coming weeks or not, traders across financial markets have already tipped their hands.

Clearing the Hurdles – Profit & Loss (subscription)

There’s no getting around the fact that regulation has changed the economics of the FX prime brokerage (FXPB) business, and not for the better.

FX and the Non-Bank Market Making Model – Profit & Loss (subscription)

Disruption is generally a positive thing, but it needs to be positive and not just an opportunity for the lowest bidder.

JPMorgan: Here’s What Could Cause the Next Financial Crisis – Business Insider

While the firm isn’t sure exactly when the so-called Great Liquidity Crisis will strike, it figures that tensions will start to ratchet up in 2018, once the Federal Reserve starts to unwind its massive balance sheet.

UBS Chairman Joins in Bitcoin Bashing by Bankers – Reuters

UBS Chairman and former Bundesbank President Axel Weber said bitcoin does not fulfil some of the most important functions of currency, the latest senior banker to express scepticism about the cryptocurrency.

Singapore’s MAS May Tighten Policy, Pimco Says – Bloomberg

30% probability MAS may raise slope of currency band slightly.

Data: The Fuel That Powers the FX Market – Profit & Loss

We are conducting our quarterly survey, which asks for your view on a variety of data-related topics from TCA to data mining.

Regulatory News

US Financial Regulations Debate Poses ‘False Choice’: CFTC Chairman – Reuters

Political debate over how to reform post-crisis rules has created a “false choice” that is obscuring other big emerging challenges to the financial markets such as digitization and cyber risk, the chair of the top US derivatives regulator warned.

UK Supervisor Warns That Brexit Plans Could Complicate Bank Regulation – Financial Times (subscription)

The UK’s top banking supervisor implored his counterparts in Europe and beyond to work together, as he warned that UK banks will become more complex – and therefore more risky – as a result of their Brexit plans.

Top US Regulators Confident Watchdogs Can Ease Volcker Rule – Reuters

Two top US financial regulators told a Reuters Summit they were confident that watchdogs would reach an agreement to significantly reduce the burden of the so-called Volcker Rule banning banks from speculating with their own money.

Experts Predict Lenient Enforcement of MiFID II Reporting Rules – The Trade

Firms are likely to be given some time to get their reporting accuracy on track in early 2018.

Europe’s Eonia Dilemma – Risk (subscription)

As Europe begins formal search for new risk-free rate for swaps, it is unclear whether Eonia will survive.

After Hack, SEC Defends Plan to Amass Traders’ Sensitive Data – Bloomberg

US Securities and Exchange Commission Chairman Jay Clayton is making a tough sales pitch as he tries to convince lawmakers that his agency can protect reams of personal data after it disclosed a hack that shook confidence in Wall Street’s top regulator.

US Regulator Declares ‘Dead’ Moves to Seize HFT Code – Financial Times (subscription)

A US proposal to allow the government to seize trading firms’ secret computer code is “dead,” a senior regulator has declared, a pronouncement that will delight the high-frequency trading industry.

Company News

CME Reports Stellar FX Month: NEX Also Strong – Profit & Loss

CME Group has recorded what Profit & Loss estimates to be its highest average daily volume in FX products since September 2014, while NEX Markets has also reported a strong month, in line with other OTC platforms to report earlier this week.

CME Launches Wednesday Weekly FX Options – Profit & Loss

CME Group has launched Wednesday Weekly FX options (Wednesday options), which expire on Friday.

Deutsche Bank Releases Trading Code in Open Source Initiative – Profit & Loss

Deutsche Bank has put over 150,000 lines of code from its proprietary platform Autobahn into the public domain so that trading applications from different providers can use it as a shared foundation and work seamlessly with each other.

Weisberg Launches New Firm – FX Week (subscription)

Matzliach Capital seeks to help strengthen wholesale financial markets by providing leaders with objective advice on how to build and grow successful businesses.

Kent Joins HC Tech – Profit & Loss

Tracey Kent has joined HC Technologies as head of e-FX sales for Europe and Asia.

Bloomberg Offers Cheaper Chat to Silence Symphony – Financial Times (subscription)

Bloomberg is offering cut-price subscriptions to its messaging tool in an effort to fend off competition from Symphony, the rival service backed by some of the biggest names on Wall Street.

Market Savvy

Asia FX Sentiment Sours as Hawkish Fed Signals Support Dollar: Poll – Reuters

Sentiment towards most emerging Asian currencies soured in the last two weeks as the US dollar rallied on growing expectations that the Federal Reserve will hike interest rates later this year, a Reuters poll showed.

Australian Dollar Edges Lower After Sharpest Retail Spending Decline in Four Years – Financial Times (subscription)

The Australian dollar dipped after official data showed worse-than-expected conditions in retail trading.