Top Headlines 

FCA: ‘Cliff Edge’ Brexit Endangers £26 Trillion in Derivatives Contracts – Citywire

A ‘cliff edge’ Brexit would put £26 trillion in derivatives contracts at risk, according to Financial Conduct Authority executive director of international Nausicaa Delfas.

Two Former Traders Jailed in Euribor Rate-Rigging Case – BBC News

Two former traders have been jailed for plotting to rig the Euribor global interest rate. Former Deutsche Bank employee Christian Bittar was sentenced to five years and four months at Southwark Crown Court on Thursday. Philippe Moryoussef, a former Barclays trader, was sentenced to eight years after a jury unanimously convicted him last week.

SFO to Push for Euribor Retrial of Former Barclays Traders – Financial News (subscription)

The UK’s Serious Fraud Office will put three former Barclays traders accused of rigging a key European interest rate back on trial after a UK court failed to reach a verdict in their case.

Emerging Market Volatility Fuelling Currency Trading Boom – Reuters

Emerging market foreign exchange trading is growing at a double-digit clip this year, as economic and political worries stoke volatility and sell-offs in currencies such as the Chinese yuan, Turkish lira and Mexican peso, industry data shows.

Dollar Below One-Year Highs on Trump Comments; Yuan Eyed – Reuters

The dollar held below a one-year high on Friday after US President Donald Trump expressed concern about a stronger currency, although a weakening Chinese yuan reduced risk appetite.

Sterling Stuck Near 10-Month Low after Bruising Week – Reuters

The British pound steadied around the $1.30 mark on Friday as traders took stock at the end of a bruising week in which weak economic data and more political uncertainty around the government’s Brexit position hammered sterling.

Initial Margin for Non-Centrally Cleared Derivatives: Issues for 2019 and 2020 – ISDA

The International Swaps and Derivatives Association and the Securities Industry and Financial Markets Association have sought to highlight the significant challenges market participants will encounter during the final phases of initial margin implementation and identify the key tasks and resulting hurdles that must be overcome to ensure an orderly implementation that avoids disruption to the functioning of the derivatives market.

Regulatory News

Fed’s Quarles Critical of Opaque Libor Data – (subscription)

Federal Reserve vice chairman Randal Quarles has expressed concern that financial markets might not be fully aware of how few transactions are used to make up the US dollar Libor rate on a daily basis due to a lack of transparency around those trades.

CFTC Reduces Risk for Customer Funds Held by Derivatives Clearing Organizations by Expanding Investment Options – CFTC

The Commodity Futures Trading Commission unanimously approved an order that allows registered derivatives clearing organizations to invest customer euro cash in French and German sovereign debt.  Allowing DCOs to invest customer euro cash in high-quality European sovereign debt poses less risk than the current practice of holding customer euro cash at commercial banks.

Spain and Slovenia Risk Fines for Non-Compliance with MiFID II – The Trade

Spain and Slovenia could face financial penalties after being referred to the Court of Justice by the European Commission for failing to implement MiFID II, despite being six months into the new regime.

Crypto News 

Switzerland Seeks to Regain Cryptocurrency Crown – Reuters

Swiss regulators are stepping up efforts to halt an exodus of cryptocurrency projects from the country, after two of only a handful of banks active in the nascent sector shut their doors on it in the last year. The departures, which industry sources fear will continue, mean Switzerland is losing business to offshore rivals including Liechtenstein, Gibraltar and the Cayman Islands, where banks are more welcoming. 

Congress Goes Crypto: An Overview of Digital Asset Regulation – Forbes

Congress addressed why and how digital assets and cryptocurrencies are impacting the US in today’s digital age. So, why is the House Agriculture Committee and the US Commodity Futures Trading Commission speaking to cryptocurrency and distributed ledger technology in the digital age? 

What Is the Real Value of Bitcoin? – Profit & Loss

There is one question regarding cryptocurrencies, and Bitcoin in particular, that has continued to baffle many, and has caused some scepticism amongst market commentators: namely what is the fundamental value of these assets?

Derivatives Veteran and Market Makers Combine to Launch Cryptocurrency Reference Rates – The Trade Crypto

A new set of Bitcoin and Ether reference rates and indices have been launched by trueDigital and 10 market makers including Genesis Global Trading, Circle and Hehmeyer. 

Company News 

The Best of Both: Combining OTC and FX Futures Markets – Profit & Loss

Paul Houston, executive director, global head of FX at CME Group, talks about practical applications of the exchange’s new FX Link product.

Cinnober Teams Up with BitGo – Profit & Loss

Cinnober, a provider of exchange technology, and BitGo, which offers institutional-grade cryptocurrency security, are collaborating to provide solutions to cryptocurrency exchanges.

Market Savvy 

China’s Yuan Plunges Again. Is a Currency War Coming? – CNBC

The yuan weakened by nearly 1% against the US dollar on Thursday and continued its slide Friday, hitting its lowest level in over a year. It has now fallen by more than 8% over the past three months amid a global trade spat and concerns over an economic slowdown in China.

EM Currencies Wilt While Dollar Hits Highest in a Year – Financial Times (subscription)

The soaring dollar is ploughing into emerging market currencies, yet again.

CEE Markets – Currencies Rebound Amid Robust Hungarian Wage, Polish Retail Data – Reuters

Central European currencies rebounded on Friday as a dollar rally lost momentum in global markets, while new data showed robust growth in wages in Hungary and retail sales in Poland.