Top Headlines

Dudley Says September Hike Possible, Markets Too Complacent – Bloomberg

The Federal Reserve could potentially raise interest rates as soon as next month, New York Fed President William Dudley said, warning investors that they are underestimating the likelihood of increases in borrowing costs.

BOJ Firepower Fizzles as Currency Market Dares Japan to Act – Bloomberg

Foreign-exchange traders are becoming increasingly confident that the Bank of Japan won’t stand in the way of further yen strength after the currency surpassed 100 per dollar for the second time this year.

The Bank of England’s Inflation Forecast May Already Be Looking Stale – Bloomberg

Just two weeks old, the Bank of England’s latest inflation forecasts are already at risk of looking a bit stale.

Asian Shares Mixed as China Approves Trading Link – WSJ (subscription)

China got a tepid response from investors on its plans to further open up its equity markets, contributing to Wednesday’s mixed performance in shares across Asia.

‘I Want You Back,’ Cries East Europe as Emigrant Tide Erodes GDP – Bloomberg

Eastern Europe is borrowing a line from the Jackson 5 as it bids to turn a tide of emigration that’s eroding its economic prospects and compounding an already-gloomy demographic outlook.

Regulatory News

CCP Risk, Resolution, Recovery Back in the Spotlight – Profit & Loss

Three papers have been released focusing on central counterparty (CCP) risk and how CCPs should be resolved or recovered in the event of a failure.

CFTC Report Provides Little Clarity on Swaps Rules – Profit & Loss

The Commodity Futures Trading Commission (CFTC) has issued its final report on the de minimis threshold for swap dealer registration, yet it remains unclear whether the Commission will make changes to this threshold.

Company News

Former Traiana Exec Launches Blockchain Initiative – Profit & Loss

Cobalt DL says that it has commenced beta testing with a number of leading FX participants on its private peer-to-peer network that uses distributed ledger technology in order to try and reduce post-trade cost and risk.

TrueEX Launches BRL Execution Tool – Profit & Loss

Interest rate swap trading platform TrueEx has added Brazilian real (BRL) interest rate swaps execution with clearing through CME, to its platform.

Market Savvy

Emerging Stocks Slip With Oil as Fed Speculation Revives Dollar – Bloomberg

Emerging-market stocks retreated from near a one-year high and oil fell for the first time in a week after hawkish comments from Federal Reserve officials helped revive the dollar. South Korea’s won tumbled by the most since Britain voted to leave the European Union and gold declined.

Pound Erases Losses as U.K. Jobless Claims Unexpectedly Decline – Bloomberg

The pound erased losses against the dollar and euro after a report showed jobless claims unexpectedly dropped in July, the first full month that reflects the Brexit decision’s effect on the U.K. labor market.

European Shares Stuck as Results Temper Recent Enthusiasm – Reuters

European shares little changed in early trading on Wednesday, with Austrian brickmaker Wienerberger, Danish brewer Carlsberg and UK insurer Admiral Group all sliding after publishing their results.

Nikkei Rebounds, But Fed Rate Comments Restrain Buyers – Reuters

Japanese stocks bounced on Wednesday after sliding the previous day, though the recovery was contained by a backdrop of cautious trading after hawkish comments from U.S. Federal Reserve officials sent the yen to a seven-week high overnight.