Top Headlines 

EU Brexit Plan for Swaps Draws Fresh Warning from US Regulator – Bloomberg

The US’s top derivatives regulator is ratcheting up pressure on the European Union to scrap its plan to tighten oversight of foreign clearinghouses, telling senior officials from the bloc that the proposal could damage financial markets and stunt economic growth.

• Remarks by Chairman J. Christopher Giancarlo at the Eurofi Financial Forum, Vienna, Austria – CFTC
• UK, US Urge EU Not to Lock out Foreign Banks – Reuters
• Brexit to Impact Access, Capital and Reporting: FIA – FOW (subscription)

Exchanges Warn on Clearing Concentration – Risk.net

The World Federation of Exchanges has called on regulators to allow initial margin to have an offsetting effect on banks’ leverage ratios, in order to urgently remedy the growing market concentration of clearing members.

• WFE Calls for Removal of Detrimental Factors to Clearing – FOW (subscription)
• The World Federation Of Exchanges Calls For Global Reform of Leverage Ratio – Exchange News Direct

Emerging Market Currencies Due a Bounce after Crazy August: Reuters Poll – Reuters

Many emerging market currencies, which have had a torrid few months, will bounce back at least partially against the dollar in a year as weakening growth momentum takes the shine off the greenback, a Reuters poll found.

• A handful of Asia’s Currencies are Holding Up Amid the Carnage Hitting Their Peers – CNBC

Big Firms Deflect Banks’ Questions on Third-Party Risks – Risk.net (subscription)

Behemoths that provide critical services to the financial industry are balking at sharing their information with banks trying to conduct third-party risk assessments. The recalcitrant include big data providers, exchanges and clearing houses.

Regulatory News

FCA Chair Warns UK Financial Firms on Record-Keeping – Financial News (subscription)

Too many City firms are failing to file properly checked and audited reports to regulators on the client money they hold, the chair of the Financial Conduct Authority has warned. 

Funds’ CDS Usage May Require Closer Scrutiny – Esma – Global Investor (subscription)

Data on the use of derivatives by investment funds is still limited at EU level, Esma says.

Five Surprising Outcomes of the 2008 Financial Crisis – Financial Times (subscription)

We learnt the dangers posed by ‘too big to fail’ banks, but now they are even bigger. 

EU Should Adopt Common Cryptocurrency Rules, Report for Ministers Says – Reuters

The European Union should adopt common rules on cryptocurrencies and scrutinize how new digital units are distributed to investors and subsequently traded, according to a report prepared for EU finance ministers. 

Crypto News 

Bitcoin’s Meltdown Looks to Grow Worse Before Things Get Better – Bloomberg

While the world’s largest cryptocurrency is down 65 percent since its peak in December, technical indicators suggest there’s worse to come.

Coinbase is Exploring a Crypto ETF, and it Has Sought Help from $6 Trillion Wall Street Giant BlackRock – Business Insider

Coinbase, the cryptocurrency exchange operator, is looking into getting a crypto exchange-traded fund off the ground, and it has sought help from BlackRock.

Custody Holds Back Institutional Crypto Trading – Markets Media

The lack of trusted custody solutions is one of the main hurdles holding back institutional trading of cryptocurrencies according to consultancy GreySpark Partners.

Goldman Sachs CFO Says Bank is Working on Bitcoin Derivative for Clients – CNBC

Goldman Sachs Chief Financial Officer Martin Chavez called a report that the bank was ditching plans to launch a cryptocurrency trading desk “fake news.” 

Company News 

Edgewater Launches LatAm Platform in Europe – Profit & Loss

Edgewater Markets has made its dedicated Latin American currency and NDF trading platform, LatamFX.Pro, available to European clients.

Sucden Adds to Execution Analysis – Profit & Loss

Sucden Financial has partnered with FairXchange to provide its e-FX clients and partners with independent analysis of execution performance.

Hooker to Join Capitolis – FX Week (subscription)

Darryl Hooker, former co-head of EBS BrokerTec Markets, is set to join Gil Mandelzis-led Capitolis as a consultant. 

Trading Technologies to Phase Out Flagship X_TRADER Futures Trading Platform – The Trade

Trading Technologies will begin the phase out of X_TRADER in the fourth quarter this year. It has been developing the successor trading platform, known as the TT Futures platform, for six years. 

TP ICAP Launches Two Data Sets for SOFR Derivatives – The Trade

Data sets for derivatives linked to the Secured Overnight Financial Rate (SOFR) index will support trading and risk modelling as volumes are expected to rise.

• CME to Offer Clearing for SOFR Swaps in Oct – FOW (subscription)

US Justice Department Probes Wells Fargo’s Wholesale Banking Unit – Financial News (subscription)

The Justice Department is probing whether employees committed fraud in Wells Fargo’s wholesale banking unit, following revelations that employees improperly altered customer information. 

Market Savvy 

Sterling Drifts Up But Set for Biggest Drop in Three Weeks on Trade Fears – Reuters

Sterling edged higher on Friday but was set for its biggest weekly drop in three weeks as traders consolidated positions before monthly US jobs data and as broader trade tensions dominated sentiment.

Dollar in Check as Investors Await August Jobs Report – Reuters

The dollar edged lower against a basket of currencies on Thursday, as investors positioned themselves ahead of Friday’s highly anticipated jobs report for August.

The Australian Dollar Is Acting Like an Emerging Market Currency – Bloomberg

Australia’s dollar is finding itself in unusual company these days, getting sold along with former emerging market darlings such as the Indonesian rupiah and Indian rupee.