Top Headlines

Ex-HSBC Foreign Exchange Trader Gets Two-Year US Prison Term – Financial Times (subscription)

Mark Johnson, former head of global cash foreign exchange trading at HSBC, was immediately sent to prison after his sentencing at a New York courthouse.

Dollar Set for Best Weekly Gain Since November 2016 on Yield Bets – Reuters

The dollar edged higher and is on track to post its best weekly performance in more than 1½ years as a spike in US Treasury yields prompted some investors to unwind some short bets against the dollar, especially against some emerging market currencies.

Sterling Slumps After UK Growth Slows to Weakest Since 2012 – Reuters

Sterling fell to an eight-week low against the dollar after Britain’s economy slowed much more sharply than expected in the first three months of 2018.

Confident Draghi Lifts Euro to Day’s Highs; Yields Dip – Reuters

The euro held at the day’s highs after ECB President Mario Draghi presented a relatively confident outlook for the euro zone economy, contrary to some expectations that he would take a more cautious stance after recent weak data.

Former FX Trader Says Boss Offered `Bribe’ to Cover Up Error – Bloomberg

A former Royal Bank of Canada currency trader sued the lender for 13 million pounds ($18 million) for unfair dismissal, alleging that a senior manager had offered him a “bribe” to cover up a trading error.

Malaysia’s Prime Minister Says Markets to Decide on Currency – Bloomberg

Prime Minister Najib Razak said Malaysia will let financial markets decide the direction of the currency as he focuses on improving the economy and on his reform agenda.

Michel Barnier Quashes UK Hopes of Special Access to EU Markets – Financial Times (subscription)

The EU’s chief Brexit negotiator has rejected British claims that the bloc would have more to lose than the UK if it cut off the City of London after Brexit.

FCA’s Bailey Slams EU’s Post-Brexit Plans for Asset Managers – Financial Times (subscription)

The UK’s top financial watchdog has slammed plans by European regulators to shake up the rules governing asset managers after Brexit.

Single-Dealer Platforms Win in Mifid Forex Shake-Up – Risk (subscription)

Best execution rules not driving liquidity away from sole dealer platforms as expected.

Tech Focus Shifts to Horde of Untapped Trade Data – Euromoney

The sell side has largely realized the potential of technology to minimize the impact of FX market fragmentation, although experts suggest it could do more to extract value from the data generated by electronic trading.

Regulatory News

CFTC’s Long-Awaited Sef Reboot Set for July – Risk (subscription)

Isda AGM: proposals will allow all execution methods – including voice – and expand range of Sef mandate.

Fed Discussing Margin Impact of SOFR Switch – Risk (subscription)

Legacy Libor swaps should be protected from new rules when ditching Libor, MetLife’s Manske says.

House is Expected to Act on Bank-Deregulatory Bill – Wall Street Journal (subscription)

A month-long standoff between House and Senate lawmakers over bipartisan legislation to ease red tape for small- and medium-size banks may soon draw to a close, allowing the bill to clear Congress and become law.

Company News

Capitolis Goes Live with FX Credit Service – Profit & Loss

Capitolis has gone live with a foreign exchange credit switching service, Capitolis Switch. 

RegTech Firm Secures New Investment – Profit & Loss

RegTech specialist, muinmos, has attracted investment from Lars Holst, former CEO of CFH Clearing, and Lars Torpe Christoffersen, an entrepreneur.

Exchange Execs Cast Doubt on Mifid II’s Best-Ex Reports – Waters Technology (subscription)

Experts warn venue reports will be unreliable and effectively bereft of value for investors.

Market Savvy

Yuan Set for Worst Month Since November 2016, as Dollar Boosted by Higher Yields – Reuters

China’s yuan weakened against the dollar as a softer midpoint and a broadly stronger greenback put the local currency on track for its worst monthly performance in one and a half years.

Emerging Market Volatility Will Continue to Rise as Fed Tightens – Financial Times (subscription)

Investors will continue to find value, but the backdrop has changed.

CBOE Saw Its Highest-Ever Bitcoin Futures Volumes Yesterday – Coin Desk

Available market data shows that CBOE saw its highest-ever volume for bitcoin futures since it first debuted the contracts back in December.