Top Headlines

FXPA Files Comments with CFTC on De Minimis Threshold, NDFs, Swaps – Foreign Exchange Professionals Association

The Foreign Exchange Professionals Association (FXPA) has filed a comment letter with the CFTC in connection with its recent proposal to maintain the current $8 billion de minimis threshold for swap dealer registration.

Industry in Alignment Over CFTC Swap Dealer Rules – Profit & Loss

There appeared to be a broad consensus in the responses to the Commodity Futures Trading Commission’s proposed swap dealer rules that the Commission should retain the current $8 billion de minimis threshold for swap dealer registration and that NDFs should be excluded from the threshold calculations.

FX Traders Are on Alert as US Dollar Intervention Risk Climbs – Bloomberg

Foreign exchange traders are always scanning the globe for signs of government intervention in the market – but it’s rare for them to suspect the world’s reserve currency as a candidate.

CTAs Register Small Gains in July – Profit & Loss

The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.21% gain in July. Year-to-date, the index has lost 1.98%.

Regulatory News 

Controversial US Derivatives Rules Resurface at the SEC – The Trade

Derivatives rules first introduced in December 2015 have come up on the SEC’s spring 2018 regulatory agenda, with a recommendation the rules be revisited. 

Dealers Seek FRTB Carve-Out for Libor Transition – (subscription)

Banks are planning to ask regulators for capital relief during attempts to move roughly $370 trillion in swaps notional away from Libor to new interest rate benchmarks.

Engineering Change at the SEC – University of Pennsylvania Law School

In January, the elite of the securities bar gathered for an annual conference at a resort near San Diego, eager to hear from Walter J. “Jay” Clayton, the new chairman of the Securities and Exchange Commission. Clayton was slated to deliver the gathering’s keynote address. What he really delivered was a shot across the bow.

A Global Approach to SFTR – MarketsMedia

It is essential that market participants approach compliance with the Securities Financing Transactions Regulation (SFTR) from a global perspective, including selecting a trade repository that operates globally and can ensure continued servicing of its clients in the UK as well as in the Eurozone. 

Crypto News

Why Cryptocurrency Exchanges Must Start to Join Forces – Financial News (subscription)

With more than 500 crypto exchanges around, prices vary depending on where you look, leaving investors trading blind.

Cryptocurrency Market Plumbs New Depths in 2018 – The Wall Street Journal (subscription)

A broad investor retreat has pushed the market for digital currencies down 70% from its January high, reflecting user frustration over their modest inroads into commerce and a general shakeout in speculative investments.

Bitcoin ETF Faces Moving Finish Line as Cboe Aims to Be First – Bloomberg

Cboe Global Markets wants to be the first to list a Bitcoin exchange-traded fund, though there’s still a lot of work needed to win approval from the US Securities and Exchange Commission.

Coinbase Says It Was Signing Up 50,000 Users a Day – Bloomberg

Coinbase, one of the world’s largest cryptocurrency exchanges, was signing up 50,000 new customers a day last year, Chief Executive Officer Brian Armstrong said.

NKP Group and CRYPTALGO Partner on Institutional Crypto Trading – The Trade Crypto

Blockchain investment and advisory firm NKP Group and crypto trading FinTech CRYPTALGO are to collaborate on providing crypto, trading and brokerage services to meet growing institutional demand as part of a new partnership. 

Company News 

AirSwap Rolls Out Conversational OTC Features – Profit & Loss

AirSwap, a decentralised global network for Ethereum tokens, is rolling out a private, beta version of its new conversational OTC features.

CME Delists Euro Rates Contracts – Global Investor (subscription)

The Chicago-based exchange’s interest rate products span the US dollar-denominated yield curve.

Blockchain FinTech Raises $32 Million in Funding from Diverse Backers – The Trade Crypto

Enterprise blockchain technology specialist Axoni has closed its Series B financing round with participation from JP Morgan, Wells Fargo, Franklin Templeton Investments and NEX Group, drawing $32 million in investments. 

Market Savvy 

Turkish Lira Jumps as Regulator Curbs Bank Swap Transactions – Bloomberg

The Turkish lira rallied after the nation’s banking regulator limited lenders’ swap transactions, a move that is likely to deter short-selling in the battered currency. 

Sterling Stuck Near 13-Month Lows After Inflation Data – Reuters

Sterling slipped below $1.27 to its weakest level since June 2017 as the dollar extended its recent rally and after British price rises for the month of July were as expected.

Dollar Hits 13-Month High as Turkey Crisis Rumbles On – Reuters

The dollar rose on Wednesday to its highest levels in over a year as a crisis in the Turkish lira that has spread to emerging markets fed demand for the greenback as a safe-haven asset.

Hong Kong Intervenes to Defend Currency Peg for First Time Since May – Bloomberg

Hong Kong intervened for a second day to defend its currency’s peg to the dollar after it fell to the weak end of its trading band.

Worried About Turkey’s Economic Problems? China’s Could Be Worse – The New York Times

The fate of the world economy depends on how China negotiates a weakening currency and capital flight.