Top Headlines

Former RBC FX Trader in Rare Win for a City Whistleblower – Financial Times (subscription)

Royal Bank of Canada unfairly dismissed a former currencies trader who had called on the bank to tighten up what he called “box-ticking” compliance procedures, a London employment tribunal has ruled in a rare victory for a City whistleblower. 

Programmers Could Face Prosecution if Clients Use Software for Nefarious Purposes – Profit & Loss (subscription)

Jitesh Thakkar, CEO of Edge Technologies, a software firm that provides technology to traders, was indicted earlier this year in a case that saw UK-based trader Navinder Sarao plead guilty to charges of spoofing. Thakkar is seeking to have the indictment overturned. The interesting aspect of this case is how prosecutors are targeting a non-trader in a spoofing case. Thakkar’s motion to dismiss repeatedly states that he is not, and never has been, a trader, and notes that Sarao told investigators that he did not share the details of the strategy he was planning to use the software for with Thakkar. 

Pound Dips Below $1.30 for First Time in 10 Months – Financial Times (subscription)

Weak retail sales figures heighten doubts about the chances of an August interest rate rise. 

Investors Bet on Long-Term Dollar Strength after Fed Comments; Greenback Rises – Reuters

The dollar rose on Thursday after upbeat comments on the U.S. economy by the Federal Reserve’s chairman reinforced expectations by investors of the currency’s long-term strength. 

Survey Highlights Hedge Fund AI Usage – Profit & Loss

Artificial intelligence (AI) and machine learning (ML) are reshaping the alternative investments landscape, but professional financial managers still make the most pivotal decisions, according to a new survey from BarclayHedge.

Regulatory News 

Japan Overhauls Financial Watchdog for Fintech Age – Nikkei Asian Review

Japan has revamped the Financial Services Agency to make the watchdog more suited for responding to new challenges in the field, such as the rise of cryptocurrencies.

FCA Planning for No-Deal Brexit – Financial Times (subscription)

Financial firms expanding their EU operations because of Brexit must still have sufficient top brass in the UK who can be answerable to British watchdogs, and that whatever their new structure it must not impede direct oversight of firms’ UK businesses by UK regulators.

Crypto News 

Coinbase Says It Was Wrong About SEC Approval of Acquisitions – Bloomberg

Coinbase, which on Monday said it got the green light from the US Securities and Exchange Commission to move forward with a trio of acquisitions, now says it never got such an endorsement.

Exploring the Grey Areas of Crypto Regulation – Profit & Loss

One of the challenges around operating in the crypto markets is that different regulators appear to define cryptoassets in different ways. Speaking at Profit & Loss Forex Network New York, Mike Gill, chief of staff to US CFTC chairman, Christopher Giancarlo, and the CFTC’s COO, discussed some of the challenges facing regulators when it comes to defining these products.

Former CFTC Chairman Says Underlying Crypto Cash Market is ‘A Mess’ – The Trade Crypto

The former chairman of the top US derivatives watchdog has urged Congress to establish who should regulate the cryptocurrency cash market which underlines securities and derivatives.

Powell Says Cryptocurrencies Aren’t Big Enough to Pose a Threat – Bloomberg

Federal Reserve Chairman Jerome Powell made it clear that the explosive growth in digital money isn’t very high on his list of concerns. The estimated $295 billion cryptocurrency market isn’t big enough to pose a threat, and the US central bank isn’t looking to regulate it, Powell said during testimony Wednesday before the House Financial Services Committee.

Billionaire Investor Ken Griffin Says He’s a Crypto Skeptic – Bloomberg

Billionaire hedge fund manager Ken Griffin said he questions the value of cryptocurrencies and laments how younger investors have been attracted to the digital coins rather than stocks of companies that drive economic growth. 

Company News 

Bloomberg Launches a Twitter Feed Optimized for Trading (Press Release) – Bloomberg

Bloomberg has expanded its relationship with Twitter, launching a real-time feed of curated Twitter data, so that clients can incorporate the most financially relevant content into their trading algorithms.

SGX Proposes Clearing Rules Changes for Tackling Trading Defaults – The Business Times

Singapore’s bourse operator has proposed changes to clearing rules for both derivatives and securities, with a public feedback exercise launched on Thursday.

Eurex Clearing Cuts OTC IRS Package Fees – Global Investor Group (subscription)

Clearing members have unlimited clearing on all OTC IRD products under the discounted Gold Pack.

Market Savvy 

China to Use ‘Counter-Cyclical’ Measures to Curb FX Volatility – Reuters

China’s foreign exchange regulator said on Thursday it was well-equipped to keep currency markets stable amid intensifying trade frictions with the United States and prepared to counteract cross-border capital outflow volatility if it arises.

Yen Haven Status Eclipsed by Japan Hunger for Foreign Stocks – Bloomberg

An increase in Japan’s appetite for risk assets overseas is having an outsized impact on the traditional safe haven status of the yen. It has helped push the yen close to a year-to-date low against the dollar, undoing its standing as a refuge for traders in an environment of escalating trade tensions between the US and China.

Asian Currency Volatility Drops Amid Emerging-Market Tempest – Bloomberg

Don’t be fooled as Asian currency swings seemed to be impervious amid an uptick in volatility in its global emerging market peers this month. Cushioned by current-account surpluses across most of the region and by China’s pledge this month of a stable yuan, the average three-month implied volatility for Asian currencies dropped 23 basis points this month.

Trump Talks of ‘Good Sessions’ with Mexico, Sparks Jump in Peso on Trade Deal Hopes – CNBC

The Mexican peso and Canadian dollar both moved slightly higher after President Donald Trump said the US may do a trade deal with Mexico and then do a deal with Canada later.