Top Headlines

Euro Area Ends Greece Negotiations Until Referendum Outcome – Bloomberg
Euro area finance ministers ruled out further negotiations between Greece and its creditors until a Sunday referendum on austerity, Dutch Finance Minister Jeroen Dijsselbloem said.

Greece Pushes Draghi’s Euro Near Reverse as Solidarity Fades – Bloomberg
Throughout the region’s debt crisis, current ECB President Mario Draghi has shown a willingness to push the central bank to act as a broad lender of last resort, a bulwark of confidence for a currency he’s said is “irreversible”. Yet he has always sought backing from Europe’s political masters – and that may be precisely the backstop he’s lacking to save Greece.

Swiss Government Says Backs SNB Efforts to Weaken Franc – Reuters
The Swiss government supports efforts by the country’s central bank’s to weaken a “strongly overvalued” Swiss franc, which is likely to keep growth very weak in the quarters ahead but not trigger a sudden economic crisis, it said on Wednesday.

No Need for Captain Euro to Ride to the Rescue – Financial Times(subscription)
Remember Captain Euro, the comic strip “Superhéro de l‘Europe” created by a think-tank to help promote the single currency’s 1999 launch? Not many Europeans do, so last year he was resurrected to breathe new life into the currency, starring in new cartoon adventures such as “Working with Renzi to Reform Italy” and “Angela Merkel Learns to Bluff”.

Riksbank Gooses Market With Surprise Rate Cut – Financial Times(subscription)
You never know with the Scandi central banks, and Sweden’s Riksbank has just chucked yet another curve ball into the market by cutting interest rates by 0.1 percentage points.

Traditional Currency Correlations Breaking Down, Warn Observers –Euromoney
A number of extreme market events in recent months, combined with ultra-loose monetary policy by the world’s leading central banks, have changed the relationships between many asset classes, including the euro, Swiss franc, yen and sterling.

Regulatory News

MAS Releases Mandatory OTC Clearing Proposals – Profit & Loss (free story)
The Monetary Authority of Singapore has commenced a consultation over its proposed regulation for central clearing of OTC derivatives.

BoE Sets Date for Open Forum on FICC Market Functioning – Profit & Loss(free story)
The Bank of England’s open forum to assess the accumulative impact of new regulations will take place on 11 November. Mark Carney, governor of the central bank, made the announcement during his speech presenting the most recent Financial Stability Report, saying that the conference will “discuss developments in market functioning and potential measures to improve market resilience”.

FSB Invites Feedback on Peer Review on Implementing Policy Framework for Shadow Banking Entities
The Financial Stability Board (FSB) has launched a peer review on the implementation of its policy framework for financial stability risks posed by non-bank financial entities other than money market funds (“other shadow banking entities”).

India Said to Consider Algo Trading Curbs to Check Spoofing – Bloomberg
India is considering placing restrictions on algorithmic trading to help check manipulation by traders, people with knowledge of the matter said.

Asifma: OTC Extraterritoriality to Boost Asia’s Capital Markets –
The extraterritorial application of EU and US derivatives regulation, which was designed for a western crisis, exposed the adverse impacts that global reforms can have on nascent capital markets in Asia.

Company News

Hotspot FX ADV at $25.7 Billion in June, Down 4% from May – LeapRate
Institutional ECN Hotspot FX concluded June 2015 with average daily volumes of $25.7 billion, down 4% from the $26.8 billion reported in May this year.

BlackRock Adds Currency-Hedged ETFs as Volatility Saps Gains – Bloomberg
BlackRock the world’s largest money manager, is adding 11 exchange-traded funds that are designed to help US investors counter the effect of currency volatility on overseas returns.

INTL FCStone to Consolidate its Three US Subsidiaries – LeapRate
INTL FCStone has completed a merger of three of its regulated US subsidiaries into INTL FCStone Securities, as of 1 July. The combined firm will be known as INTL FCStone Financial and is registered as both a broker-dealer and a futures commission merchant.

Singapore Exchange Continues to Grab Market Share in the Indian Rupee –Finance Magnates
Reporting a record in Indian rupee trading, the Singapore Exchange (SGX) has announced that during June $9 billion of contracts were traded. In total, 286,959 USD/INR contracts were traded, a 26-fold increase from the same period in 2014.

Market Savvy  

Dollar Firms Before Payrolls, Greece Unease Simmers
The dollar was near a three-week high on Thursday and world stock markets had a delicate feel, as the implication of US jobs data later for a possible Fed rate hike added to Europe’s uncertainty over Greece.

Financial Market Perspectives – 2 July
A risk-on trade prevailed in US and European equity and fixed income markets Wednesday in reaction to perceptions surrounding Greece’s debt outlook and calming developments in Puerto Rico’s debt problems. Expectations for another solid US monthly jobs report Thursday and the disappearance of month- and quarter-end pressures added to the weakness in Treasuries and strength in equities.

Press Releases

TriOptima Eliminates ¥79 Trillion Notional in Latest JSCC Japanese Yen IRS Compression Cycle
TriOptima announces today that 18 financial institutions, including seven major Japanese banks, have reduced notional principal outstanding in Japanese yen interest rate swaps by ¥79.02 trillion ($641 billion) in JSCC’s third triReduce compression cycle.

ASX Selects Nasdaq’s Post-Trade Risk Technology to Manage Its Real-Time Risk Across Clearinghouses
Nasdaq has been selected to deliver Australian Securities Exchange’s (ASX) next generation post-trade risk management solution. Sentinel Risk Manager will provide a single, real-time risk management system across both ASX clearing houses and all asset classes, including real-time margin calculation and related customer risk analytics.

Euronext Signs MOU With ICBC
Euronext has signed a Memorandum of Understanding (MOU) with the leading Chinese bank, ICBC China Ltd. Euronext is now completely focused on its trajectory to develop its markets as a fully equipped tool to support cross border transactions of European and Chinese corporates.

Industry Events