Top Headlines
FXPA to Host Presentation on Front-Running, Pre-Hedging in NYC
The Foreign Exchange Professionals Association (FXPA) will hold a special presentation by the law firm Clifford Chance on the recent prosecutions that centered on issues relating to front-running and pre-hedging in the FX industry. The event takes place on July 9th and is hosted by FXPA Founders Council Member, Cboe Global Markets, at their offices in downtown Manhattan.
David Felsenthal, Dan Silver and Ben Peacock of Clifford Chance will join us to talk about the ongoing appeal involving a former HSBC trader convicted of wire fraud and conspiracy, and the recent acquittal of a Barclays trader, each of whom was accused of front-running a client’s FX order.
The presentation will include an overview of the cases, followed by a discussion and Q&A led by FXPA Chair Lisa Shemie, Chief Legal Officer of Cboe FX and Cboe SEF. A networking reception will follow the discussions.
FXPA has a limited number of seats available for this invitation-only event. Please contact Julie Ros at jros@fxpa.org if you would like to request an invitation.
Facebook’s Libra Gambit Forces Washington’s Hand on Crypto Policy – Bloomberg (subscription)
Facebook’s decision to create its own digital money – with the grandiose ambition of establishing an alternative global financial system – is jumpstarting a long simmering debate in Washington over how to regulate cryptocurrency. For years, US regulators and lawmakers have bickered over how to tackle the thorny issues surrounding the emergence of cryptocurrencies, like protecting consumers and preventing crime. But the entry of a big and controversial company like Facebook could force their hand.
- Carney Optimism on Fintech Gives Facebook a Possible Path to BOE – Bloomberg (subscription)
- France Creates G7 Cryptocurrency Task Force as Facebook’s Libra Unsettles Governments – Reuters
Regulatory Certainty is Crucial – ISDA
It is said that nothing in this world is certain except for death and taxes. That’s true enough for financial markets, where gains can turn to losses in the blink of an eye. But it should be possible to achieve a level of certainty and consistency in how financial markets regulation is interpreted and applied. Fortunately, participants in the US derivatives market received an important clarification from the Commodity Futures Trading Commission earlier this month that will ensure users aren’t subject to unnecessary costs and operational burdens.
The UK chancellor’s Financial Services Skills Taskforce has warned the Square Mile is facing an “existential skills crisis”, with the sector struggling to attract graduates and current staff threatened by rapidly evolving technology.
Regulatory News
Botched Brexit Dragging City’s Attractiveness to New Low, Warns EY – Financial News (subscription)
Brexit is casting a growing shadow over the UK’s financial services sector, with sentiment on the country’s long-term appeal to banks, fund managers and insurers at an all-time low, according to consultancy EY.
The Case for a Financial Transaction Tax – Bloomberg (subscription)
It’s a good conservative principle that where possible, the government should recover the cost of its services from the people who use them, rather than from taxpayers at large. It’s also pretty uncontroversial that the government must oversee financial markets, to ensure that they are free and fair.
Global Regulators Give Banks Capital Relief on Derivatives – Reuters
Global banking regulators have agreed to introduce more flexibility into how banks compile a broad measure of capital, the Basel Committee said. The committee, made of banking regulators from the world’s main financial centers, said it has agreed on “targeted and limited revision of the leverage ratio”.
IOSCO Identifies Keys to CCP Default Auctions – FOW (subscription)
CPMI-IOSCO presents key considerations for a successful CCP default management auction
Crypto News
CME: Open Interest in Bitcoin Futures Contracts Hit All-Time High – CoinTelegraph
CME Group has released data showing that open interest in Bitcoin futures is rising.
Digital Asset Redemption to Use Zero Hash for Settlement – Profit & Loss
Zero Hash, Seed CX’s digital asset and fiat currency custodian subsidiary, has announced that Digital Asset Redemption has agreed to utilise its settlement service for short-term digital asset loans.
Big Four Accountancy Firm Unveils New Crypto Auditing Tools – News BTC
Big Four accountancy firm, PwC, has just detailed a solution to help companies audit crypto asset activities. The firm states that it can provide even greater evidence of ownership of cryptocurrency than previously possible. Such tools have already been instrumental in bringing some of those using crypto for illegal ends to justice.
Company News
Bank Investments in Technology Not Yet Driving Significant Revenue Growth: Accenture – Reuters
The $1 trillion invested by traditional banks globally over the past three years to improve their technology has not yet delivered the revenue growth that had been expected, according to an Accenture report.
LCH Makes First Hire for Singapore Office – FOW (subscription)
Clearinghouse LCH is setting up an office in Singapore and has hired a former clearing expert from Merrill Lynch.
Market Savvy
Sterling Falls After Johnson Moves Closer to Becoming British PM – Reuters
Sterling slipped in early trading on Friday as Brexiteer Boris Johnson moved closer to becoming British prime minister, worrying investors that his government would make a no-deal Brexit more likely.
Emerging Market Assets Set for Solid Fed-Fuelled Weekly Gains – Reuters
Emerging market currencies consolidated gains against the dollar on Friday, on track for their biggest weekly rise in close to two years but stocks snapped a three-day winning streak on concerns over US-Iran tensions.
Dollar Heads for Big Weekly Loss, Political Tensions Briefly Boost Yen – Reuters
The dollar was headed for a big weekly loss on Friday and the euro a solid gain after a dovish shift by the Federal Reserve, and investors also briefly pushed the yen to a new five-month high.