Top Headlines

Hedge Fund Managers Tweak the Model to Retain Assets – Profit & Loss

Hedge fund managers are becoming more innovative and open to negotiation over fees in return for the ability to lock in assets for longer.

High Frequency Traders Elbow Their Way into the Currency Markets – Bloomberg

High-speed electronic market making, already widespread in stocks, is getting a grudging welcome from currency markets.

Currenex, EBS Face Off With New FX Feeds  – WatersTechnology (subscription)

State Street-owned foreign exchange trading platform Currenex has launched a premium market data feed aimed at increasing transparency and lowering the barrier to entering the FX market.

Markets Head to Leave Bank of England – Profit & Loss

The Bank of England has announced that its deputy governor for markets and banking, Minouche Shafik, will leave at the end of February 2017.

Basel Capital Revamp Endorsed Without Assurance Sought by EU – Bloomberg

The central bank governors overseeing the Basel Committee on Banking Supervision backed the “broad direction” of the regulator’s bank capital-rule revamp, while stopping short of providing assurances sought by Europe on the overhaul’s impact.

Hedge Funds Cut Bearish Pound Positions Before BOE Rate Decision – Bloomberg

The pound rose for the first time in four days as hedge funds and other large speculators cut their bets that the currency will fall for a second week before the Bank of England’s latest policy decision.

Czech Central Bank’s Rusnok: No Reason to Speed Up FX Cap Exit – Reuters

There is no reason for the Czech central bank to bring forward the expected exit from its weak crown policy, Governor Jiri Rusnok said on Tuesday, adding the bank would welcome a “robust” fulfillment of its inflation target.

Here’s How the US Election Might Impact the Currency Market – MarketWatch

A team of fixed income and emerging-markets analysts at Société Générale have come together to offer their two cents about how the outcome of the election could impact the currency market.

Interpol and Europol to Investigate How Digital Currency is Used by the Criminal Underworld – International Business Times

A new project has been put in motion by a working group consisting of Europol, Interpol and the Basel Institute on Governance that will attempt to investigate and ultimately put an end to money laundering with digital currency.

‘Flash Crash’ Trader Takes Extradition Case to Appeal – Telegraph

The Hounslow trader who is fighting the United States’ claims that he placed spoof bets on the market is to take his appeal against extradition to the High Court next month.

Regulatory News

Blockchain Support Bill Passes Vote in US Congress – CoinDesk

The US House of Representatives has passed a non-binding resolution calling for a national technology innovation policy that includes supportive language for digital currencies and blockchain technology.

New Action on CFTC Automated Trading Rules – FIA

At a CFTC meeting last week, Chairman Tim Massad outlined the Commission’s fall priorities. Among them is a supplement to the proposed rule on automated trading, or Reg AT.

Brazil Real Gains as Fed Speech Offsets Protests Against Temer – Bloomberg

Brazil’s currency advanced after a US Federal Reserve Governor played down the case for tightening monetary policy, offsetting local political concerns after protests against President Michel Temer.

Commerce Wants ‘Formal’ Panel to Decide Value of Rupee – Indian Express

The Ministry of Commerce and Industry has proposed setting up of a “formal institutional mechanism” to determine the right value of the rupee for competitive advantage in export markets.

Company News

360T Partners with Bellin for Confirmations – Profit & Loss

Deutsche Borse’s FX trading platform 360T has launched a fully integrated trade confirmation solution in partnership with Bellin, a provider of Web-based treasury software and services.

SimCorp Adds Netting Capabilities Via FX Connect – Profit & Loss

SimCorp says it has enhanced its partnership with FX Connect to provide SimCorp Dimension users with full foreign exchange netting capabilities.

Banks are Making Billions from Secret Mark-Ups on Small Business Payments – Business Matters

Britain’s small and medium businesses are losing billions every year in hidden exchange rate mark-ups on international payments, according to new research.

Market Savvy

Sterling Dips Below $1.33 After UK Inflation Data – Reuters

Sterling fell below $1.33 and hit a low for the day against the euro after Britain’s annual consumer price inflation rate for August came in just below expectations on Tuesday.

Dollar Falls After Fed’s Brainard Dampens Bets on September Rate Hike – Reuters

The US dollar fell against a basket of major rivals on Monday after comments from a top Federal Reserve official reduced bets that the central bank would raise rates this month by striking a dovish stance, while speculation of a less-accommodative Bank of Japan boosted the yen.

EM FX Squeezed Amid Stimulus Concerns – Financial Times (subscription)

Emerging market currencies are slipping today, as concerns that global central banks may have run out of ammunition continue to weigh on sentiment.

China Yuan Firm on Higher PBOC Fix, Traders Wary Before Holidays – Reuters

China’s yuan edged up in early trade on Tuesday after the central bank set a higher mid-point although traders were unwilling to push the currency too high ahead of looming holidays.