Top Headlines

Euro Slips as Trade Tensions Keep FX Markets on Edge – Reuters

A rally in the euro faded as the dollar edged up with trade tensions between the United States and the European Union seen deciding the near-term direction for the currencies.

Regulator’s Report Warns of Trade War Consequences – The New York Post

Trade wars could trigger a “significant” economic slowdown, according to a report from a major international financial regulator – as the Trump administration and China continue to escalate their tough tariff talk.

Central Bankers Should Disregard Volatile Markets, Says BIS – Wall Street Journal (subscription)

Central bankers in the US and Europe shouldn’t be deterred from raising interest rates and winding back stimulus policies by the increased financial market volatility that will accompany their efforts, the Bank for International Settlements said.

Britain Might Not Play Fair with Brexit: Deutsche Boerse Chief – Reuters

Britain may bend the rules to defend London’s standing as a global investment hub after leaving the European Union, the head of the company that runs the Frankfurt Stock Exchange warned, raising the stakes in a duel for post-Brexit financial supremacy.

One of Trump’s Two ‘Currency Manipulators’ Is Still at It – Bloomberg

Donald Trump isn’t exactly getting his way with Russia since accusing it in April, alongside China, of “playing the currency devaluation game.”

Why the Global Code Is Important – Profit & Loss (subscription)

This practice, albeit minor, gives lie to those last look apologists that insisted on telling me for many years that this didn’t happen.

In the FICC of It – Profit & Loss (podcast)

This week continues the tradition of slamming a white paper from one of the world’s authorities.

Regulatory News 

Report: How Banks Are Avoiding Dodd-Frank Swaps Rules – Profit & Loss

A new report warns that US banks are using an obscure regulatory footnote to circumvent the swaps market provisions contained within Dodd-Frank.

Steven Maijoor: ESMA to Target Periodic Auctions and SI Regime – The Trade

Systematic internalisers (SIs) and periodic auctions will be high on the EU financial watchdog’s agenda over the coming months, as the industry approaches the six-month mark under the MiFID II regime.

Large Non-Systemic US Banks Call for Tailored Liquidity Rules – Risk (subscription)

Two banks urge lawmakers to provide LCR relief because they do not fall into G-Sib category.

Crypto News

Bitcoin Erases Loss, Bounces Back from Lowest Level in 2018 – Bloomberg

Bitcoin erased its loss after setting a 2018 low earlier on Sunday, with the volatility reflecting increased scrutiny by government regulators on the embryonic digital-currency sector and global central bankers raising questions about its viability.

Exclusive: OTCXN Acquires Ogg Trading – Profit & Loss

OTC Exchange Network (OTCXN), which uses proprietary blockchain technology in a bid to eliminate trading counterparty and settlement risk on their trading network, has acquired Ogg Trading, a provider of FX trading technology.

‘Enthusiasm Has Slowed’ for Creating National Cryptocurrencies: ‘The Unknown Risks Are Potentially Large’ – Business Insider

Countries are unlikely to introduce national cryptocurrencies any time soon, according to a senior Swiss central banker.

Japan’s Biggest Bitcoin Exchange Suspends New Business – Wall Street Journal (subscription)

Japan’s biggest bitcoin exchange said it would halt taking new business after regulators said it wasn’t doing enough to stop money laundering and terrorist financing.

Company News

LCH Receives Recognition as a Central Counterparty in Mexico – Profit & Loss

The recognition for LCH’s SwapClear Service is effective from 22 June 2018 and provides a greater choice of CCPs to those participants affected by the Mexican clearing mandate.

Daniels Exits NatWest Markets – Profit & Loss

Ian Daniels has left his position as director, head of e-FX sales, EMEA, at NatWest Markets.

MahiFX Launches Data Analytics Tool – FX Week (subscription)

MFX Echo will help traders identify “highly impactful behaviour” to inform trading decisions.

Market Savvy 

Yuan Ends Onshore Trading at Six-Month Low After PBOC Reserve-Ratio Cut – Reuters

China’s yuan ended the official domestic trading session at its lowest level in six months following the central bank’s cut in some banks’ reserve requirements in order to boost lending.

Turkish Lira Rallies 2.2% After Erdogan Claims Election Victory – Financial Times (subscription)

Turkey’s currency climbed sharply after Recep Tayyip Erdogan claimed victory in this weekend’s election and an alliance led by his party was poised to take a majority in parliament.