EC to Launch Sweeping Review of Post-Crisis Regulation – Financial News (subscription)
The European Commission is to launch a fresh, all-encompassing review of regulatory changes made in response to the financial crisis, as part of its push towards a Capital Markets Union – a move that could ultimately see changes made to huge pieces of legislation, including Mifid II.
Wall Street Said to Win Lucrative Concession in Derivatives Rule – Bloomberg
Wall Street is close to cutting billions of dollars from the cost of a derivatives rule as a debate among regulators over how tough the provision should be shifts in banks’ favour. Firms such as JPMorgan and Morgan Stanley wouldn’t have to set aside as much money in trades between their own divisions in the final version of a rule US regulators may release as soon as next month, said two people familiar with the discussions.
Sarao Effect Has Driven “Need for Speed” – FOW (subscription)
The British futures trader dubbed the ‘Hound of Hounslow’ who was arrested in April over manipulative trading behaviour back in 2010 is due in court Friday for his extradition hearing. His case has sparked media and market interest, and has caused a shift in attitudes to market surveillance and the systems available to catch manipulative behaviour.
Central Limit Order Book Platforms Face Uphill Battle – Euromoney
Proponents of central limit order book (CLOB) point to its ability to deliver liquidity at times of extreme market stress, but they have yet to convince the majority of market participants that the price is worth paying.
Ex-Deutsche Bank Manager Cloete Slams German Libor Criticism – Bloomberg
A former global finance chief at Deutsche Bank said the German market regulator ruined his reputation after it claimed he and other managers may have turned a blind eye to Libor manipulation. Alan Cloete said in an August 10 letter to the agency, Bafin, that he has suffered “as a result of the inaccurate and reputationally damaging assessments” by it.
Currency Hedge Funds Post Gains in August as Safe Haven Shift Towards Yen and Euro – Opalesque (subscription)
Currency hedge funds reported gains last month as the US dollar fell with safe haven demand shifting toward the Japanese yen and euro due to China’s currency devaluation and the fall in commodity prices, along with continued speculation about a US rate increase this year. The Parker FX Index was up +0.40% in August.
Customers Consider Suing Banks in FX Manipulation – FX Week (subscription)
Institutional investors are approaching law firms about potential civil claims against banks implicated in the ongoing investigations into the manipulation of FX markets.
High-Frequency Firms Dominate Treasury Trading in Near Secret – Bloomberg
Trading in the $12.7 trillion US Treasuries market, once the domain of Wall Street’s biggest banks, is increasingly dominated by firms most people have never heard of.
Best Execution Woes Ongoing for Small Hedge Funds – Hedge Funds Review (subscription)
One year since the UK Financial Conduct Authority’s damning review into best execution practices, small hedge funds are still fixated over how to achieve the best price. In July 2014, the FCA issued its report on banks and asset managers’ best execution practices, blasting firms’ understanding of what they needed to do to justify and monitor whether they were achieving best prices – and costs and speed and safety – in execution.