Top Headlines

Ex-HSBC Exec Says $3.5B Forex Deal Was No Fraud – Law360 (subscription)

An attorney for former HSBC currency exchange executive Mark Johnson on Friday asked the Second Circuit to overturn his conviction for defrauding Cairn Energy in a $3.5 billion currency deal, saying it wrongly criminalizes an arms-length transaction between two sophisticated parties.

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

The podcasters discuss the numbers in a recent report on FX platforms and take a look at how some speed bumps are not speed bumps (they are really) and the different strategies being rolled out to deal with the “problem” of high speed traders.

FX Surveillance Gets Personal in Hunt for Market Abuse – FX Week (subscription)

Algorithms underpinning today’s platforms are learning traders’ habits – even their voice won’t escape detection.

Regulatory News

CFTC Appoints Chief Privacy Officer – Profit & Loss

Charles Cutshall has been named chief privacy officer of the Commodity Futures Trading Commission.

Libor’s End Forces Global Banks to Juggle Multiple Replacements – Bloomberg

For the world’s biggest financial firms, getting ready for the end of one multi-trillion-dollar global reference rate is a monumental undertaking. Getting ready for the end of half-a-dozen? Some would call that impossible.

China, Mexico Signal Willingness to Step Up Trade Talks With US – The Wall Street Journal (subscription)

China and Mexico both signaled a willingness to negotiate with Washington over escalating trade issues, while the Trump administration took to the airwaves to defend its use of tariffs to gain concessions from trading partners.

US Broker-Dealer Rule Fails to Convince Consumer Advocates – Financial Times (subscription)

The US securities regulator’s vote this week on landmark regulation governing broker-dealers is unlikely to quell the raging debate on conflicts of interest in the sale of financial products.

S. Korea FSC Announces Derivatives Market Reforms – Regulation Asia

The minimum deposit requirements will be abolished for professional investors and eased for retail investors. The minimum 20-hour compulsory training requirement will be reduced.

Crypto News

Facebook in Talks with US Regulator Over Digital Currency – Financial Times (subscription)

Facebook has begun talks with the Commodity Futures Trading Commission over its plans for a digital currency, in a sign of how the world’s largest social media platform is laying the groundwork for an ambitious push in to payments.

Japanese Regulators Show Hesitancy Toward Crypto ETF – Finance Magnates

A representative of Japan’s Financial Services Agency recently said that cryptos like Bitcoin have no intrinsic value.

SEC’s ‘CryptoMom’ Fights for Controversial ETF Innovation – Financial Times (subscription)

A US financial regulator dubbed “CryptoMom” has called on fellow supervisors to abandon their cautious approach to approving controversial new exchange traded funds and allow innovation to flourish.

Another Satoshi is in the Building and Craig Wright is… Thrilled – Financial Times (subscription)

On May 21, Craig Wright and his team announced to the worldd that he had been officially endorsed as bitcoin creator Satoshi Nakamoto. This was because Wright had been “granted” a copyright registration for the bitcoin white paper and the bitcoin source code by the US Copyright Office. According to them, this was the “first government agency recognition” of Wright as Satoshi. He hadn’t been endorsed at all, in fact.

Company News

DTCC in Talks to Clear MarketAxess Bond Trades – (subscription)

MarketAxess, one of the largest corporate bond trading platforms for asset managers, is considering centrally clearing some client trades at the National Securities Clearing Corporation. A senior figure at the Depository Trust & Clearing Corporation, parent company of the NSCC, confirmed that talks had begun with the trading platform.

Deutsche Bank, UniCredit Start Brexit Swaps Move From London – Bloomberg (subscription)

Deutsche Bank and UniCredit moved some of their swaps trades from London to Frankfurt in May as banks used a lull in the ongoing Brexit drama to prepare for the worst.

UBS and BAML Top the Polls for Research and Broking at ‘City Oscars’ – Financial News (subscription)

UBS and Bank of America Merrill Lynch have topped a closely watched ranking of investment research providers and stockbrokers in Europe, 18 months after new European trading rules greatly increased competition for broking business.

Market Savvy

Swiss Franc at Near Two-Year Highs vs. Euro as Trade Tensions Rise – Reuters

The Swiss franc rallied to its highest levels in nearly two years against the euro on Monday as US President Donald Trump hardened his trade stance to countries beyond China, prompting investors to move into perceived safe-haven currencies.

Mexican Peso Steadies After Last Week’s Turbulence – Financial Times (subscription)

The Mexican peso was steady on Monday after a tumble last week sparked by Donald Trump’s threat to impose escalating tariffs on its neighbour due to a failure to curb illegal migration over the southern border.

Trade-War Risk Has Investors on Alert as New Week Gets Underway – Bloomberg

Investors are on alert to see what impact escalating trade feuds might have on the global outlook, but refrained from further judgment in early trading hours Monday following last week’s selloff in riskier assets.