Top Headlines

Dollar Edges Lower After Friday Bounce – Reuters

The dollar edged lower following sharp gains in the previous session, as investors focused on inflation data due this week that could determine the currency’s longer-term trajectory.

Sterling Edges Up from 11-Day Low as Dollar Rally Pauses – Reuters

The British pound rebounded modestly from an 11-day low against the dollar as the greenback steadied across the board after its biggest one-day gains this year. 

Renminbi Chips Away at Last Year’s Drop – Financial Times (subscription)

The renminbi has strengthened by 3.4 per cent this year, a reversal from its record 6.5 per cent fall last year, in part reflecting central-bank efforts to squeeze bearish speculators.

China July FX Reserves Unexpectedly Hit Nine-Month High on Boost from Weak Dollar – Reuters

China’s foreign exchange reserves rose twice as much as expected in July to a nine-month high as tighter regulations and a weaker dollar keep capital outflows in check.

Still Growing: Swiss FX Reserves Climb Again; Inflation Ticks Higher – Financial Times (subscription)

Foreign-currency reserves have climbed again for the Swiss National Bank, reaching a new record high of SFr714.3bn in July, up by 3 per cent on the previous month.

The Big Questions Facing Traders This Week – Financial Times (subscription)

Another quiet August? Can the euro break $1.20? Will central banks take action?

The Acceleration of Emerging Market Swap Clearing – Open Markets

As cost pressures continue to mount in the bilateral swap market, market participants have increased their voluntary clearing of OTC products.

GFXC, Last Look and the Use of ‘Likely’ – Profit & Loss (subscription)

No one seems to want to claim it, did it just appear?

What are the Key Drivers of Buy Side Algo Adoption? – Profit & Loss (subscription)

A number of factors, including the increased need for an audit trail for FX execution and a desire to limit market impact, are driving the adoption of algorithmic execution tools amongst buy side firms, says Petra Wikström, global head of execution and alpha solutions at BNP Paribas.

Big Data Breach Unmasks Bloomberg Chat Room Users – The New York Post

Nearly one thousand Bloomberg terminal users participating in an anonymous chat room had their identities unmasked this week when a London investment company sent out a list of the participants — including names and employers — to people in the chat room.

Intimidation Tactics Gag Traders in Kenya’s Currency Market – Bloomberg

Kenya’s central bank is taking an unusual approach to protecting its currency: intimidation.

Regulatory News

Regulators’ Penalties Against Wall Street Are Down Sharply in 2017 – Wall Street Journal (subscription)

Business-friendly shift under President Trump is only one factor, as enforcement actions from the financial crisis wind down.

UK Regulator Targets Every Single Individual in Finance – Financial Times (subscription)

FCA wants to extend personal responsibility for breaches of sweeping new conduct rules.

Why Volcker Rule Reform Won’t Happen Quickly – American Banker (subscription)

The Office of the Comptroller of the Currency’s move to solicit feedback on rolling back the Volcker Rule was only the first step in a long process, yet observers say it shows how fractured the five agencies tasked with implementing the proprietary trading ban have become.

Is Dodd-Frank Crippling Banks or Saving Them? – Fortune

There’s widespread disagreement about the underlying causes of the financial crisis and the necessity of the regulations Dodd-Frank encompasses. 

Company News

NEX Optimisation Expands Harmony for MiFID II Compliance – Profit & Loss

NEX Optimisation has enhanced its existing messaging services to help clients prepare for the introduction of MiFID II on 3 January 2018.

CBOE Posts Sales and Profit Jump Despite Low Volatility – Financial Times (subscription)

The acquisition of Bats Global Markets last year helped boost net revenue at CBOE Holdings by 85 per cent during the second quarter compared to the year ago period.

Atlanta Firm to Launch Quant and Cryptocurrency Hedge Funds – HFM Week (subscription)

Aurora Investment Advisors is set to launch pair of funds later this year.

Pragma Launches Triangulation Algo for Crosses – FX Week (subscription)

New functionality will enable clients to achieve better execution when trading illiquid currency pairs.

Look Who’s Hiring in Prime Broking on Wall Street – eFinancial Careers

Prime brokerage recruitment is dwindling in London, but one nation’s banks are going for growth. 

Market Savvy

Hong Kong Dollar Nears Decade Low – Financial Times (subscription)

The Hong Kong dollar is nearing its lowest level in a decade against its US counterpart as the interest rate gap between the two continued to widen in favour of the US. 

Bitcoin Soars to Record as Buyers Look Beyond Miners’ Split – Bloomberg

Bitcoin extended gains to a record, ignoring a split in the cryptocurrency over its future.

Venezuela’s Currency Plummets Amid ‘Panic’ – Wall Street Journal (subscription)

The Venezuelan bolivar has lost nearly half its value on the black market over the last week, a stark symbol of the country’s mounting economic and political problems.