Top Headlines

European Commission Introduces Mandatory OTC Swaps Clearing – Profit & Loss

The European Commission has adopted new rules that make it mandatory for certain OTC interest rate derivative contracts to be cleared through central counterparties.

Electronification of Asian FX on the Rise – Euromoney

Fuelled by regional treasury centres, electronification of FX is gathering pace in Asia.

Mexico Sells $100m in Auction Amid FX Market Volatility – Reuters

Aug 5 Mexico’s central bank sold $100 million on Wednesday in an auction with a minimum price trigger of 16.3353 pesos per dollar, the bank said, part of a program to boost foreign exchange liquidity following a slump in the peso.

Malaysia FX Reserves Sink to 5-yr Low Under $100bn – Financial Times 

Malaysia’s foreign exchange reserves have dropped below $100bn for the first time since 2010, with the ringgit falling quickly and testing new 17-year lows.

Traders Have Disappeared From the Gold Market – Bloomberg

As gold continues to languish near its lowest price in five years, one element seems to be missing: traders

Behind Enemy Lines: Foreign Hedge Funds Thrive in China – Reuters

Hundreds of foreign hedge funds and traders are working in a regulatory grey area in China, using speculative trading strategies that are complicating regulators’ efforts to calm the country’s turbulent stock markets.

CCP Basis Market Takes Off – But Will Buy-Side Join In? – (subscription)

Dealers are encouraging asset managers to trade CME-LCH swaps.

Bitcoin startups lure quant whizzes from Wall Street – Reuters

Once the province of small-time investors driven by their distrust of government-backed currencies, now Wall Street bankers and traders are leaving high-paying jobs to join bitcoin start-ups, while big firms hire in-house to get their arms around bitcoin and the related ‘blockchain’ technology.

Regulatory News

Investigation Into Pilot Program Darkens Brokerage’s Outlook – Wall Street Journal (subscription)

Probe found executive at ITG accessed client data to get trading edge.

Employees of Hedge Fund Managers May Be Liable for Failing to Prevent Fraud – Hedge Fund Law Report (Subscription)

An investment management firm, along with its affiliate, has filed a claim against its former chief financial officer (CFO), who unwittingly disclosed the firm’s online banking security details to a fraudulent caller, enabling illegitimate transfers from the firm’s bank accounts.

European Commission and US “Close to a Deal” on Data Sharing – Banking Technology

The European Commission and the US authorities are working on the final details of a commercial data-sharing deal.

Company News

Standard Life Investments Strengthens Macro Capabilities – Profit & Loss

Investment manager Standard Life Investments has added to its macro investing capabilities with the appointment of Shayne Dunlap and Richard Marshall to the Absolute Return Government Bond Fund (ARGBF) team.

Market Savvy  

Jobs Data Could Hold Rates’ Fate – Wall Street Journal

The Federal Reserve only needs a little more improvement in the jobs market to raise rates in September. It might see that on Friday.

Currencies Hamstring Central Banks on Path to Reverse Low Rates – Bloomberg

Central bankers in Europe have their hands tied by currency markets.

Press Releases

CFTC Orders Morgan Stanley & Co. LLC to Pay a $300,000 Civil Monetary Penalty for Violations of Customer Protection Rule for Cleared Swaps and Related Supervision Failures

FXCM Inc. Announces Second Quarter 2015 Results

Industry Events