Top Headlines 

Getting to Grips with FX Exposures – Profit & Loss

For many corporate treasurers, deciding what products to use in order to hedge their FX exposures is the easy part of the job. The hard part is working out exactly what their FX exposures are.

TCA Data on FX Algo Performance Winning Over the Buy-Side – The Trade

Panellists discuss the increasing adoption of algorithms in FX markets, although uptake has been slow.

Good News for Vendors as Buy-Side Fixed Income Desks Eye New Tech Platforms – The Trade

Almost two-thirds of European fixed income desks are considering partnerships with at least three new platforms in the coming year, according to new research. 

Hedge Funds Up in August: BarclayHedge – Profit & Loss

Hedge Funds gained 0.42% in August according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 3.26% increase in the S&P 500 Total Return Index.

Waters 25: A Look Back on the Last Two Decades – Waters (subscription)

Waters examines some of the most important events in financial technology of the past 25 years.

Systematic Internalisers a “Successful Phenomenon” – Quanthouse – FOW (subscription)

SIs respond to buy side firms’ needs, allowing them to challenge market structure, an expert says. 

Regulatory News 

EU Deadlock Set to Delay CCP Resolution Rules – (subscription)

Lawmakers disagree over whether Esma should be given new powers to tackle distressed CCPs. 

Bank of England’s Mark Carney Extends Tenure – The Wall Street Journal (subscription)

Governor agrees to stay until January 2020, as London and Brussels reiterate they hope to agree within next two months on Brexit terms.

Trade Bodies Say Capital Rules Need Review for Clearing –FOW (subscription)

Isda, FIA and EACH say certain capital requirements need to be revised to avoid disincentives for client clearing.

The 2008 Financial Crisis, as Told By Tim Geithner, Former Treasury Secretary and NY Fed President – CNBC

Timothy Geithner, former president of the New York Federal Reserve and former Treasury secretary under President Barack Obama, recalls the events leading up to the 2008 financial crisis, and its aftermath.

FCA Bosses Take Heat Over Treatment of Whistleblowers – Financial News (subscription)

Audience members rail against UK regulator at an annual public meeting in London. 

French Regulator Warns Against ‘Circumventing’ New EU Rules – Financial Times (subscription)

The Autorité des Marchés Financiers said that some platforms offering contracts for difference and binary options products were encouraging investors to open accounts at their non-EU subsidiaries in order to evade new EU-wide markets rules.

Swaps Data: The Race to Replace Libor – (subscription)

Over the past 12 months, regulators in the UK and US have been pushing harder and harder for market participants to move away from Libor. Their work is starting to have a visible effect, with growing volumes in swaps and futures – and debt issuance – that reference the chosen replacement rates.  

Crypto News 

CFTC Boosts ‘Crypto-Friendly’ Image with New Two-Day Event Exploring Digital Assets – The Trade Crypto

The US regulator is holding a two-day crypto event in Washington on regulatory and safeguarding issues, among others.

SEC Takes First Action Against Hedge Fund Over Cryptocurrency Investments – The Wall Street Journal (subscription)

Regulators fined a hedge-fund manager and two men who ran a website for selling cryptocurrencies in two cases that represent a new front in the government’s campaign to police the market for digital assets. 

Omniex Expands its Crypto Trading Platform While Upping its Client List – The Trade Crypto

The trading platform puts finishing touches to solution adding algorithmic execution and smart order routing services to its PMS, OMS and EMS offerings.

Bitcoin Bulls Are Sweating Latest Test of Key Resistance Level – Bloomberg

Bitcoin’s recent stumble could turn into a full-blown tailspin, testing its strong support level of $6,000 again, according to a leading technical indicator.

Olaf Carlson-Wee Rode the Bitcoin Boom to Silicon Valley Riches. Can He Survive the Crash? – The Wall Street Journal (subscription)

Now running the world’s largest crypto hedge fund, the 29-year-old says he is undeterred by recent losses. 

Company News 

IPC, GreenKey Build Real-Time Voice Transcription Streaming Application – Buy-Side Technology (subscription)

Voice communications providers IPC and GreenKey Technologies have expanded their partnership to develop an application that will stream real-time transcriptions of traders’ phone calls.

DSB Launches Technology Roadmap for OTC Derivatives Identifiers – Inside Reference Data (subscription)

The Derivatives Service Bureau (DSB) has created a subcommittee of the DSB Technology Advisory Committee (TAC) to review and potentially implement technology requirements for participants in the over-the-counter derivatives market.

Libor Alternative Streaks Ahead of Bitcoin Futures – Financial Times (subscription)

For CME, Sofr has had a cumulative notional volume of $711bn whereas bitcoin’s is $25bn.

AcadiaSoft Launches Sensitivities Calculation Services – ArcadiaSoft

Market participants that are in-scope for the calculation of initial margin for uncleared derivatives can access risk sensitivities calculation services both through AcadiaSoft and through Bloomberg as an integrated part of their Bloomberg workflow. 

Market Savvy 

Markets See Highest Chance Yet of Two More Fed Hikes in 2018 – Bloomberg

Federal Reserve officials expect to lift the central bank’s benchmark interest rate a total of four times in 2018, based on their economic projections. Markets are increasingly becoming believers.

Sterling Off Early Lows But Political Concerns Weigh – Reuters

Sterling bounced from early lows in volatile trading before a central bank meeting on Thursday, though reports of a potential leadership challenge to Prime Minister Theresa May weighed on sentiment.

EU’s Juncker Wants Bigger Global Role for Euro – Reuters

European Commission President Jean-Claude Juncker called on Wednesday for the European Union to promote the euro as a global currency to challenge the US dollar.

Trade War Concerns Underpin Dollar Gains – Reuters

The dollar consolidated gains on Wednesday as markets remained cautious about trade talks between the United States and Canada, as protracted weakness in China’s currency weighed on sentiment.