Top Headlines
FXPA Webinar: “FX Global Code: One Year Anniversary – Where are We?” – Profit & Loss
Join members of the Foreign Exchange Professionals Association (FXPA) today for a webinar on the “FX Global Code: One Year Anniversary – Where are We?” at 10am (Eastern US)/3pm (UK)/10pm (Singapore).
Euro Stuck Near 10-Month Lows as Italy’s Political Crisis Deepens – Reuters
The euro bounced higher but remained stuck near 10-month lows against the dollar as concerns about a deepening political crisis in Italy kept a lid on any rebound.
Italian Markets: Redistribution Risk Revives “Redenomination Risk” – Financial Times (subscription)
Markets have been spooked by the risk of Italy leaving the eurozone.
Sterling Rises from Six-Month Lows as Markets Settle – Financial Times (subscription)
Sterling recovered from the previous day’s six-month low, as currencies stabilised after Italy’s political crisis sent shockwaves through global financial markets this week.
China-Centered Asia Is Bulwark Against EM Squalls – Financial Times (subscription)
Rise of China adds ballast to emerging markets asset class.
Global FXC Unveils Global Index of Public Registers – Profit & Loss
The Global Foreign Exchange Committee (GFXC) has launched a Global Index of Public Registers to serve as a central reference point for demonstrated commitment to the FX Global Code.
Ex-Barclays Euribor Trader `Lost a Lot’ on First Trade – Bloomberg
A former Barclays Plc manager was delighted when a junior trader “lost a lot of money” in her first market bet.
Credit Suisse Is Near Lehman Derivatives Settlement – Bloomberg
Credit Suisse is closing in on an agreement to settle a $1.2 billion derivatives demand against bankrupt Lehman Brothers Holdings Inc., reducing the claim to $385 million, according to a person with knowledge of the matter.
AIMA Survey Highlights Growth in Responsible Investing – Profit & Loss
Hedge funds globally have allocated at least $59 billion to responsible investment (RI), according to a survey by the Alternative Investment Management Association (AIMA) and the Cayman Alternative Investment Summit (CAIS).
Combining Currency Hedging with Alpha Generation – Profit & Loss (video)
Adrian Lee, president and CIO at Adrian Lee & Partners, explains why combining currency hedging with alpha generating strategies can benefit investors.
Profit & Loss “The FoXys” Readers’ Choice Awards – 2018 – Profit & Loss
Voted for by the Profit & Loss readership, the winners of the 2018 “FoXys” Reader’s Choice Awards were announced at the Forex Network New York conference held on May 25th.
Regulatory News
EU to Review Mifid II If Brexit Talks Falter – Financial News (subscription)
Europe’s leading financial regulator has said it will review the vast set of trading and investment rules that came into force this year if Brexit negotiations fail, sparking fears among financiers and politicians of painful market upheaval.
CCPs Must Step Up Cyber Risk Efforts, Says EU Legislator – Risk (subscription)
Policymakers want more focus on non-default loss resources; Eurex Clearing’s Mueller flags investment risk.
Libor Expert: Don’t Rely on Forward RFR Rates for Transition – Risk (subscription)
Swaps users should embrace backward-looking risk-free rates instead, says chair of UK working group.
Company News
Deutsche Börse Adds GTX to Stable – Profit & Loss
Deutsche Börse has further built out its OTC FX business with the announcement that its 360T unit has agreed to acquire the GTX ECN business from Gain Capital for $100 million – the deal is expected to close in the second quarter of 2018.
Mok Tapped to Head FX at Straits Financial – Profit & Loss
Raymond Mok has been hired as head of FX at Straits Financial.
Clearing Mexican Peso Swaps Just Got a Little Easier – Profit & Loss
IHS Markit’s MarkitSERV has expanded its global network of derivatives clearinghouses by connecting to Asigna, the clearinghouse for Mexican listed and standardised derivatives.
Crypto News
States Play Catch-Up on Crypto – Wall Street Journal (subscription)
Plan to aggressively target ICOs that are set up to rip off naive investors.
Investors Bet $4 Billion on a Cryptocurrency Startup – Wall Street Journal (subscription)
A start-up company based in the Cayman Islands is on track to raise more than $4 billion through a yearlong sale of digital tokens – the largest fundraising of its kind.
Traders with Pockets Full of Crypto Quit Wall Street – Bloomberg
Millennials who made money trading digital assets in their spare time are breaking away from top firms.
Gibraltar Is Rolling Out the Red Carpet for Crypto Firms – Bloomberg
Xapo, a startup that is said to hold $10 billion of Bitcoin for clients, is boosting its operations in Gibraltar, as the British territory rolls out the red carpet for cryptocurrency firms.
Market Savvy
Turkish Lira Plunge Brings Back Bad Memories – Financial Times (subscription)
President Erdogan’s economic pronouncements have spooked international investors.
Bank of Indonesia Raises Rates for Second Time in Two Weeks – Financial Times (subscription)
Economists had forecast Wednesday’s increase on the back of new governor Perry Warjiyo’s pledge to stabilise the exchange rate.
Gold’s Age-Old Haven Reputation Takes a Beating – Bloomberg
Stronger dollar is a significant headwind, Oanda’s Innes says.