Top Headlines

Five More Banks Settle Benchmark Claims – Profit & Loss

Five banks have filed to settle a class action lawsuit brought against them over FX benchmark manipulation claims.

Banks Must Face Interest Rate Swap Class Action: US Judge – Reuters

A US judge said investors may pursue part of their nationwide antitrust lawsuit accusing 12 of the world’s biggest banks of conspiring to rig the $275 trillion market for interest rate swaps.

Global FXC Publishes Initial Guidance on Adherence Registers – Profit & Loss

At the same time as the Statement of Commitment was issued, ideas were being touted around of a central registry that participants can access to ensure their counterparties were Code adopters.

Dollar Steady Near 13-Month Lows; Data Eyed – Reuters

The dollar held near a 13-month low against a basket of currencies, weighed down by political uncertainty and increased short positions, but markets were wary of pushing it lower before data due later this week.

Trump’s Dollar Mess: Losses Pile Up as Political Drama Mounts – Bloomberg

Currencies are proxy for politics as QE distorts stocks, bonds.

BoE ‘Super Thursday’ Looms as Sterling Trades Near 10-Month Highs – Reuters

Britain’s pound traded above $1.31, close to a 10-month high, as investors eyed this week’s Bank of England “Super Thursday” for a steer on whether record-low interest rates could soon be lifted for the first time in more than a decade.

IMF Says Dollar Overvalued; Euro, Yen, Yuan Broadly in Line with Fundamentals – Reuters

The International Monetary Fund said that the US dollar was overvalued by 10 percent to 20 percent, based on US near-term economic fundamentals, while it viewed valuations of the euro, Japan’s yen, and China’s yuan as broadly in line with fundamentals.

What Nex Reducing the Floor in Cable Might Mean – Profit & Loss (subscription)

The concern is the message this sends, for I see this as signalling an end to the EBS campaign to be seen as a core market in all four majors.

Gaining an Edge – Profit & Loss

It is a conundrum of the current foreign exchange market that while the world is awash with events and opportunities to trade, successful traders seem thin on the ground.

FinTech Boom Exposes Silicon Valley Naiveté – Profit & Loss (subscription)

Fintechs from Silicon Valley are being hampered by their lack of understanding about how the incumbent financial services firms in the market operate, according to Rosario Ingargiola, founder and CEO of OTCXN.

Regulatory News

CFTC Nominees Vow to Finish Derivatives Rule, Disagree on Details – Wall Street Journal (subscription)

The three nominees for the Commodity Futures Trading Commission promised to complete a long-delayed rule on position limits in derivative markets, though the two Republicans and one Democrat made clear they disagreed on the specifics.

Trump Eyes Columbia Professor for SEC Seat – Wall Street Journal (subscription)

The White House is preparing to nominate Columbia University law professor Robert Jackson to a Democratic slot on the Securities and Exchange Commission, according to people familiar with the matter.

OCC Seeks Dismissal of States’ Fintech Charter Suit – Wall Street Journal (subscription)

State-level regulators have argued against OCC’s plan to grant federal licenses to fintech firms that provide banking services.

Company News

What Does the Future Hold for FX Prime Services? – Profit & Loss

For the Q3 edition of Profit & Loss, we launched a survey to gauge market sentiment regarding this question.

NEX Launches EBS Benchmarks – Profit & Loss

NEX Data has unveiled the ‘EBS FX Benchmarks’, a series of 30-minute FX fixings. The new fixings went live on 26 July 2017 and, the firms says, “enhance the variety of global benchmarks available, bringing increased transparency to all FX market participants”.

Hai Cloud Exchange Partners Thomson Reuters for FX – Profit & Loss

Haier Financial Holdings’ subsidiary, Hai Cloud Exchange (HK), has announced a strategic collaboration with Thomson Reuters.

Citi Poaches Deutsche’s Global Electronic and Algo Trading Head – The Trade

Sabrina Wilson has more than 20 years’ experience in futures and options, clearing and electronic trading. 

CFH Shuffles the Pack – Profit & Loss

Prime of prime provider CFH Clearing has announced senior changes at board level. 

Pragma Rolls Out New Algo Triangulation Service for FX Trading – Finance Magnates

The triangulation service will focus on less-liquid FX pairs and will be available on the Pragma360 platform. 

Market Savvy

Yen Firms Past ¥111 on Solid Industrial Data – Financial Times (subscription)

Asian currencies were mixed as strong industrial data out of Japan helped push the country’s currency to its strongest level in six weeks.

C$ Snaps Back to Near Two-Year High After GDP Surprise – Reuters

The Canadian dollar resumed its rally to two-year highs against the US currency, as surprisingly robust domestic economic data boosted expectations the Bank of Canada will again raise interest rates.

Zloty Steadies Ahead of CPI Data, Czech Crown Eases – Reuters

The zloty steadied near three-month lows against the euro as flash data due later in the day was expected to show a rise in Polish inflation, making it unlikely, though, that the central bank will lift interest rates.