Top Headlines

Euronext Buys 90% Stake in FastMatch – Profit & Loss

European exchange group Euronext has become the latest to buy into the OTC FX market, announcing it has acquired around 90% of FastMatch for $153 million initial cash consideration.

Euro Near Six-Month Highs, Pound Sags vs Yen After Manchester Blast – Reuters

The euro hovered near a six-month high against the dollar after German Chancellor Angela Merkel said the currency was “too weak,” while the pound sagged against the yen after a blast at a concert in Britain’s city of Manchester killed at least 19 people.

Buoyant Data Bolsters Euro Rally, Shares Climb – Reuters

The euro set a new six-month month high and the region’s shares made gains as the latest economic data made for some encouraging reading, especially in Germany.

Renaissance for the Euro as Trump Trade Falters – Financial Times (subscription)

Macron’s win helps transform the currency’s fortunes, making it the top G10 performer.

Weak Yields Prod Dollar Towards 6½ Month Low – Reuters

The dollar dipped against the basket of currencies that measures its broader strength, low 10-year US Treasury yields underlining the collapse of faith in a promised boost to growth and inflation from the Trump administration.

LSE Raises Estimate for Loss of London Clearing to $100 Billion – Bloomberg

Banks and investors will end up $100 billion worse off if the European Union forcibly repatriates the clearing of euro-denominated derivatives after Brexit, according to London Stock Exchange Group’s Chief Executive Officer Xavier Rolet.

Ready for Launch – Profit & Loss (subscription)

Profit & Loss talks to David Puth, CEO of CLS and Chairman of the Market Participants Group (MPG), about how the FX Global Code of Conduct will work.

CME Reaps the Benefits of Its Interest-Rates Empire – Wall Street Journal (subscription)

A few years ago, CME Group’s main profit engine was stuck in low gear. Now it is in overdrive.

Regulatory News

CFTC Strengthens Rules to Protect Whistleblowers – Financial Times (subscription)

The primary US commodities regulator, the Commodity Futures Trading Commission, said that it has approved rule changes to bolster protections for whistleblowers and improve its process for reviewing claims.

Deregulators Must Follow the Law, So Regulators Will Too – Wall Street Journal (subscription)

As the Labor Department acts to revise the Fiduciary Rule and others, the process requires patience.

Government Enforcers Take Aim at Compliance Officers – Financial Times (subscription)

Profession fears it is being sacrificed over desire to punish individuals for misdeeds.

While You Weren’t Looking, Trump Basically Killed Dodd-Frank – Huffington Post

The rule is basically dead, Keefe Bruyette & Woods analyst Brian Gardner wrote in a note to clients last Monday.

Company News

UK’s Nex Group to Unveil Overhaul of Post-Trade Unit – Financial Times (subscription)

Nex Group will detail its year-long project to restructure its post-trading division, in a move designed to boost corporate profitability and bolster the use of blockchain technology to record deals.

CLS Expands Third Party Access in Korea – Profit & Loss

Fund management institutions can now access the CLS system in Korea for the first time via CLS third-party service provider, HSBC.

KCG Said to Eliminate 10% of Staff, Shut Two Offices in Asia – Bloomberg

Trading firm KCG Holdings, which Virtu Financial is buying for more than $1.3 billion, is eliminating 10 percent of its staff and shutting offices in Singapore and Mumbai, according to a person familiar with the matter.

Bitcoin Options Exchange Raises $11.4 Million in Funding – Reuters

Ledger Holdings, the New York-based parent company of bitcoin options exchange LedgerX, said it closed $11.4 million in funding led by Miami International Holdings and China’s Huiyin Blockchain Venture Investments.

Market Savvy

EM Asia FX: Manchester Blast Subdues Trade; Fed Minutes in Focus – Reuters

Asian currencies were subdued, with a suicide attack in Manchester dampening a mild resurgence in risk appetite, just as investors had begun looking past the political crisis still simmering in Washington.

Brazil Stocks, Currency Extend Losses on Corruption Woes – Reuters

Brazilian markets extended their losses on fears the country’s mushrooming political crisis will derail efforts to pull Latin America’s biggest economy out of its worst-ever recession.