Top Headlines 

Dollar Dominance Prevails Despite Global Efforts – Financial Times (subscription)

As recent crises in Turkey and Argentina have shown, a rising greenback – and higher US interest rates – puts emerging market borrowers in a vice, making it crucial to know whether the Fed is seeking a stronger dollar. 

Brexit Starting to Loosen London’s Grip on Interest Rate Swaps – Bloomberg

“We are going to need to go for a drink to talk this through, rather than having it out in the open.” What dispute drives regulators to resort to alcohol? The fate of euro clearing after Brexit. The offer from Brian Bussey, the US Commodity Futures Trading Commission official responsible for clearing, was to Jochen Metzger, who does the same job at Germany’s Bundesbank.

FX Renaissance – Tabb Forum

The FX trading landscape continues to shift, with banks being increasingly displaced as market makers by technologically savvy trading firms that are neither bogged down by legacy infrastructures nor saddled by regulation. 

Banks Cry Foul Over LCH Compression Policy Changes – (subscription)

A fierce row is brewing in the arcane world of cleared swaps compression. LCH has come under fire for proposed changes to the way business slots are allocated between external providers of the critical service, with dealers claiming the plans could stifle competition. 

Regulatory News

Benchmark Reform Is Big Industry Challenge – Markets Media

Scott O’Malia, chief executive of derivatives trade association ISDA, stressed that benchmark reform is the biggest task for the financial industry.

EU watchdog Extends Temporary Crackdown on CFDs – Financial Times (subscription)

Europe’s financial regulator has said it will extend tough temporary restrictions on contracts for difference, speculative trading products popular with retail investors, in a further blow to the struggling online trading sector. 

Australia’s Banks Pursued Profits Over Integrity, Probe Finds – The Wall Street Journal (subscription)

A series of scandals has damaged the banks’ reputation as among the world’s safest for investors.

Trading Venues Face Increased Scrutiny on “Unsatisfactory” MiFID II Data Submissions – The Trade

European trading venues are set to face increased scrutiny on the delivery of data for MiFID II requirements, after the EU regulator announced plans to publish timeliness and completeness indicators. 

Crypto News 

Coinbase Wants To Be Too Big To Fail – Fortune Magazine

The cryptocurrency-trading startup rose from obscurity to become the first billion-dollar company of the Bitcoin boom. Now founder Brian Armstrong must prove that Coinbase, along with crypto itself, has the staying power to take on Wall Street. 

Cryptocurrency Coalition to Pay DC Lobbyists in Digital Coins – Bloomberg

The firms, all based in the San Francisco area, include digital money transfer company Ripple and several startups. They’re announcing Thursday that they’ve started a coalition and are retaining the Klein/Johnson Group, a bipartisan lobby shop that specializes in technology and financial services issues.

Bitmain’s Prospectus Reveals a Lot About Bitcoin’s Wild Ride – Bloomberg

Ten charts shed light on the world’s biggest crypto player.

Company News 

Charles River and Cassini Team Up for Margin Estimation – Profit & Loss

Charles River Development and Cassini Systems have formalised a business alliance to automate the calculation of margin estimates and provide pre- and post-trade analytics in the Charles River Investment Management Solution (IMS) for OTC and exchange-traded derivatives.

DTCC, Symphony Partner to Offer Faster Exception Resolution – Sell-Side Technology (subscription)

The Depository Trust & Clearing Corp. (DTCC) has partnered with financial messaging system Symphony to expand the reach of its exception manager service.

Kopman Exits Santander – FX Week (subscription)

Philip Kopman, global head of foreign exchange e-commerce at Santander, has left the bank to move back to the US and look for new opportunities. 

State Street Expands Sentiment Indicators – Markets Media

State Street Corporation today announced the addition of two new macro indicators, focused on currencies and countries, to its range of State Street MediaStats Indicators.

IHS Markit Unveils Initial Margin Calculation Service to Aid ISDA Margin Rule Compliance – Inside Market Data (subscription)

The new service will help firms struggling with the complex calculation requirements resulting from the implementation of new initial margin calculation rules by ISDA. 

Market Savvy 

Emerging Markets – Basket Case or Opportunity? – Financial Times (subscription)

Battered markets also mean lower prices. And some analysts say now is the time to invest, not run for the exit. 

Euro Slips as Italy Agrees ‘People’s Budget’; Dollar Buoyant – Reuters

The euro fell to an eleven-day low on Friday after Italy’s government agreed a budget overnight seen by some investors as defying Brussels.

Sterling Falters on GDP as Brexit Pressures Grow – Reuters

Sterling fell to an 11-day low on Friday after data showed that British companies had cut their investment in the second quarter of 2018 and the economy grew slightly slower than previously thought.

Indonesia’s Plan to Create a Domestic Rupiah NDF Market – Reuters

Indonesia’s central bank plans to issue regulatory measures that will permit banks in the country to trade non-deliverable forwards in the domestic currency market.