Top Headlines 

Global FX Committee Adds Pre-Hedging Example; Reports on Progress – Profit & Loss

The Global Foreign Exchange Committee (GFXC) has added a negative example for Principle 11 of the FX Global Code – which deals with pre-hedging – to the document’s Annex. The update has been released alongside the minutes from the GFXC’s recent meeting in South Africa, as well as a paper that reviews developments since the May 2017 launch of the FX Global Code and outlines the GFXC’s near-term priorities.

Interdealer Broker TP Icap Picks Paris for EU Hub, Profit Drops – Reuters

TP Icap, the world’s largest interdealer broker, said on Tuesday it chose Paris to be its European Union headquarters after Britain leaves the bloc, and reported a steep drop in first-half pre-tax profit due to lower volatility in financial markets.

No Slowdown for FX Markets in July: Thomson Reuters – Reuters

Currency trading on Thomson Reuters platforms rose in July compared to last year as increased volatility across financial markets led to greater trading. On a monthly basis, turnover declined due to seasonality effects.

European Derivs Vols High in July Amid Seasonal Slowdown – Global Investor (subscription)

Deutsche Boerse and Euronext noted increases in derivatives volumes in July while ICE and CME Group saw slight declines. 

Firms Should Assess Trading Charges After BoE Decision: NEX triCalculate – Global Investor (subscription)

The cost of derivatives trading is expected to go up for corporates as banks increase CVA charges, an expert says. 

Regulatory News

White House Weighs Former Enforcement Lawyer for Democratic SEC Seat – The Wall Street Journal (subscription)

The White House is considering a former enforcement lawyer for a Democratic slot on the Securities and Exchange Commission, according to people familiar with the matter. The White House is vetting Allison H. Lee for the role, these people said.

Regs, Rates Still Restricting Repo Market: Commerzbank – Global Investor (subscription)

The repo market continues to be hamstrung by regulation and the ECB’s interest rate policy, according to Commerzbank.

Crypto News 

Goldman Sachs is Considering a Custody Offering for Crypto Funds – Bloomberg

Goldman Sachs could offer a boost for the burgeoning universe of funds betting on cryptocurrencies. The firm is considering a plan to offer custody for crypto funds, according to people with knowledge of the matter.

Barclays Traders Say They’re Building Out a Crypto Desk – But the Bank Says it Has Nothing in the Works – Business Insider (subscription)

Barclays appears to have had at least two former traders looking at the viability of a cryptocurrency trading desk within the firm’s investment bank.

What the Biggest Financial Institutions Are Doing About Cryptocurrencies – Financial News (subscription)

Financial News looks at how some of the world’s biggest finance houses are approaching the rise of digital money.

Bitcoin Declines Below $7,000, Leading Cryptocurrency Retreat – Bloomberg

Bitcoin slipped below $7,000 to its lowest level in three weeks, as seemingly positive sentiment surrounding the largest virtual currency soured over the weekend. 

Wall Street to Give Bitcoin Another Boost – Forbes

Last week, Intercontinental Exchange announced plans to form a new company, Bakkt, with the purpose to create an open and regulated global ecosystem for digital assets. This isn’t the first time Wall Street has cozied up to digital assets.

A Culture War Is Brewing Between Bitcoin’s Old and New Money – Bloomberg

An effort is underway to strip some of the cryptocurrency’s still-anonymous early adopters of their remaining power.

Crypto Pumps Are Just for Fun – Bloomberg Opinion (subscription)

The word “unregulated” has a sort of strange usage in finance. Hedge funds, for instance, are often referred to as “unregulated,” which their compliance teams must find frustrating.  

Company News

Thomson Reuters Deepens Investment in Crypto Data – Inside Market Data

Thomson Reuters’ Eikon financial desktop platform now offers book and trade data on 50 cryptocurrencies through an integration with CryptoCompare.

Blythe Masters Looks Beyond Finance for Next Wave of Blockchain Growth – CoinDesk

To hear Blythe Masters tell it, the time has come for Digital Asset to spread its wings and fly. The distributed ledger technology company she founded in 2014 is entering a new phase, heralded by, among other things, a partnership with Google Cloud to simplify and proliferate the technology.

Mosaic Data Touts Analytics Platform That Could Cut Trading Losses – Financial Times (subscription)

More than 20 investment banks and asset managers are considering using a real time data analytics platform for the $2.1 trillion interest rate swap market.

AxiCorp Buys One Financial – Profit & Loss

FX and Contracts for Difference trading provider AxiCorp is acquiring UK-headquartered One Financial Markets.

AI-Driven Asset Manager Expands Product Suite – Profit & Loss

New York-based asset manager, qplum, has launched a multi-strategy AI managed futures program for qualified institutional clients.

Market Savvy

Sterling Steadies After Brexit Sell-Off – Reuters

The pound rose on Tuesday after a heavy sell off by investors concerned Britain could soon crash out of the European Union without securing a trade deal.

Turkish Lira Stabilises After Violent Sell-Off – Financial Times (subscription)

The Turkish currency tumbled 4.7% to a record low in the previous trading day.

EM Asia FX: Most Asian Currencies Weaken on Trade War, Iran Sanctions – Reuters

Most Asian currencies weakened against the dollar on Tuesday as revived US sanctions on Iran and escalating trade tensions between Beijing and Washington tempered appetite for emerging market foreign exchange. 

Is China Weaponizing the Yuan? Model Shows Market Rules – Bloomberg

Even after the People’s Bank of China introduced the fixing mechanism in August 2015 to increase the influence of the market, there were periods when the fixing did not fully reflect market signals. Early this year though, the PBOC removed this factor, and committed to setting the yuan fixing in line with market prices. The Bloomberg Economic model shows they have followed through on that commitment.

CEE Markets: Currencies Gain, But Leu Bucks Trend as Central Bank Turns Dovish – Reuters

The leu dropped to a two-week low against the euro on Tuesday, bucking a rise by other Central European currencies, after the Romanian central bank downplayed chances of another rate increase.