Fed policymakers See Rate Hikes, Blurring Dove-Hawk Divide – Reuters

Increasing consensus at the Federal Reserve on the need to continue raising US interest rates was on display at the start of a global central bankers meeting here, as the longstanding distinction between so-called policy hawks, centrists and doves blurs in the face of falling unemployment.

Brexit & Beyond: Britain Ramps Up Preparations for No-Deal Brexit – Wall Street Journal (subscription)

The UK government on Thursday published advice for British businesses on how to prepare for an abrupt and messy break from the European Union.

Former Goldman FX Head to Be Questioned Over Benchmark Manipulation – Profit & Loss

Former European head of FX spot trading at Goldman Sachs, Mitesh Parikh, has been told me must submit himself to questioning by US authorities over the benchmark manipulation lawsuit brought against a group of banks.

Australian Treasurer to become New Prime Minister – Reuters

Australian Treasurer Scott Morrison will become Australia’s new prime minister after winning a Liberal party leadership vote on Friday, ending an internecine battle that has scarred the conservative government ahead of an election due by May 2019.

US-China Trade Talks End with No Breakthrough as Tariffs Kick In – Reuters

US and Chinese officials ended two days of talks on Thursday with no major breakthrough as their trade war escalated with activation of another round of dueling tariffs on $16 billion worth of each country’s goods.

Investors Reach $10M Deal With Citigroup Over Forex Rigging – Law360 (subscription)

Investors attempting to amend their proposed class action against more than a dozen big banks over the alleged rigging of wholesale foreign exchange markets asked a New York federal judge for preliminary approval of a $9.95 million settlement that would resolve claims against Citigroup.

Ex-Barclays Forex Chief Can’t Dodge HP Fraud Charges – Law360 (subscription)

A California federal judge rejected a second bid by a former Barclays PLC trader to ditch an indictment accusing him of scheming to defraud Hewlett-Packard Co. in a £6 billion options transaction.

Regulatory News

CFTC Approves Amended Clearing Requirement Proposal

The Commodity Futures Trading Commission has unanimously approved a swap clearing requirement proposed rule that would reduce unnecessary burdens on bank holding companies, savings and loan holding companies, and community development financial institutions.

CFTC Simplifies Rules for Chief Compliance Officers – Wall Street Journal (subscription)

The Commodity Futures Trading Commission unanimously approved rules this week that simplify the regulations governing chief compliance officers of swap dealers, major swap participants and futures commission merchants.

The Pain of Mifid II is Worth the Gain For Investment Research – Financial Times (subscription)

There are few more wasteful forms of expenditure than when an individual spends someone else’s money on a third party. Milton Friedman might not have been thinking about fund management when he made this observation. But he could have been.

Relaxed Swap Rule to Help Lure Foreign Exchange Funds – Jakarta Post

Bankers and exporters have responded positively to Bank Indonesia’s decision to ease regulations on the currency swap mechanism, which is expected to attract foreign exchange funds and, eventually, help stabilize the tumbling rupiah.

Crypto News 

Low Volume on US Crypto Exchanges as SEC Bitcoin ETF Decision Nears – NewsBTC

The cryptocurrency markets face declining volume in the United States as they move closer to the SEC’s decision on two proposed Bitcoin ETFs.

The Bitcoin Bubble’s Real Losers – Financial Times (subscription)

A once-in-a-lifetime chance has emerged to invest in SchadenfreudeCoin — a decentralised digital token pegged to the smugness of No-Coiners who were never sucked into the ailing cryptocurrency fad.

Thailand’s Central Bank Is Developing a Digital Currency Based on R3 Tech – Coindesk

The Bank of Thailand has announced it expects to complete the first phase of a proof-of-concept trial for a central bank digital currency by March 2019.

A Framework for the Development of a National Crypto-Currency – International Journal of Economics and Finance

This paper seeks to provide a conceptual framework as to whether a central bank or a monetary authority should issue a crypto-currency given available technology and what are the consequences of doing so.

China to Block More Than 120 Offshore Cryptocurrency Exchanges as Crackdown Escalates – South China Morning Post

Authorities will block access in China to 124 websites operated by offshore cryptocurrency exchanges that provide trading services to citizens on the mainland.

Company News

Bruised Absolute Return Funds are Dumped by Investors – Financial Times (subscription)

Sentiment sours on a hedge fund type strategy once heralded as the future of active asset management.

At Hedge Funds, Where Are the Women? – Wall Street Journal (subscription)

At hedge funds, women do just about any job—but rarely run the money. 

Vela Partners with CoinMarketCap – Profit & Loss

Technology provider Vela, has announced a partnership with CoinMarketCap, a provider of cryptocurrency data, to add cyrptocurrencies to its market data feed service, SuperFeed.

Market Savvy

Hong Kong Monetary Authority Steps in Again to Defend Currency – South China Morning Post

Hong Kong dollar needs to be defended for third time this month as US-China talks end with little progress in Washington.

Expect More Volatility in the Turkish Lira – Bloomberg

Options markets show that investors are bracing for more trouble.

Currencies Steady as Investors Look to Powell at Jackson Hole – Financial Times (subscription)

Foreign exchange markets were steady in early Asia-Pacific trading despite political turmoil in Australia with investors looking ahead to a key speech later in the day from US Federal Reserve chairman Jay Powell.