Top Headlines

HSBC Fined by Fed for “Unsafe and Unsound” FX Practices – Profit & Loss

The Federal Reserve Board has fined HSBC just over $175 million for the firm’s “unsafe and unsound practices” in its FX trading business.

Deutsche Settles FX Manipulation Claim – Profit & Loss

One of two banks still to settle a class action lawsuit over FX manipulation claims has agreed to pay $190 million.

Dollar Posts First Monthly Gain Since February Amid Fed Chair Talk – Bloomberg

The dollar was on its way to a third straight weekly advance and its first monthly gain since February after shrugging off month-end flows.

Dollar Index in Longest Quarterly Losing Streak Since 2008 – Financial Times (subscription)

Despite nabbing its biggest weekly gain since February, the DXY dollar index declined for the third straight quarter — its longest quarterly losing streak since the financial crisis.

Sterling Sinks to Three-Week Low on Economy, Tory Conference – Reuters

Sterling slipped to a near three-week low against the dollar as investors focused on underlying weakness in the British economy and the governing Conservatives gathered for what could be a fraught party conference.

Catalonia Worries Drive Euro Down Against Stronger Dollar – Reuters

The euro slipped against the dollar after a violence-marred independence vote in Spain’s Catalonia region and as higher US Treasury yields drove the dollar up across the board.

ACI Joins Voices Calling for Changes to Principle 17 – FX Week (subscription)

ACI finds “no firm evidence or specific situations” where there is any likely benefit to clients from trading in the last look window.

UK Regulator Weighs Temporary Licences for Overseas Groups After Brexit – Financial Times (subscription)

FCA looks at options to enable companies to operate in London after UK quits EU.

FX Brokers Get Excited About Leveraging Bank APIs – Euromoney

FX brokers are expected to leverage bank APIs to speed up client registration under the revised Payment Services Directive, despite the associated regulatory requirements.

Regulatory News

EU Watchdog Sees No Risk of Chaos Over New Trading Rules – Reuters

New European Union trading rules from next January could trigger some glitches, but broader disruption is not anticipated, the bloc’s securities watchdog said.

EC Official Hints at Partial Relocation of Euro Swaps – Risk (subscription)

Commission yet to work out details such as which products and what share of stock may have to move.

Trump Says He Will Make Fed Chair Decision in the Next Two to Three Weeks – CNBC

The announcement comes amid reports that the president has interviewed former Fed Governor Kevin Warsh and current Governor Jerome “Jay” Powell in recent days.

US Bank Regulator Opens Door to National License for Bitcoin Firms – Coin Desk

The acting comptroller of the currency for the US Treasury Department has said he is open to the idea that a new breed of banks might one day conduct business in bitcoin and other cryptocurrencies.

South Korea Joins Global Backlash Against Initial Coin Offerings – Financial Times (subscription)

The country’s Financial Services Commission said it would ban “all forms of initial coin offerings regardless of using a certain technology or a certain name”.

Company News

Nex Warns on Key Division’s Profitability – Financial Times (subscription)

Michael Spencer’s fintech group says overspending on post-trade unit to hit margins.

Vietcombank Signs with Thomson Reuters – Profit & Loss

Vietcombank says it has selected Thomson Reuters Electronic Trading (ET) to power its business in Vietnam and strengthen its presence in both the local and international foreign exchange markets.

Market Savvy

Yen Weakens on Positive Data, Company Forex Forecasts – Financial Times (subscription)

The yen fell as much as 0.4 per cent against the dollar following a slew of economic data releases, some of which pegged the currency to depreciate further in the coming months.

Dollar Surge Sends Emerging Currencies Reeling – Reuters

Emerging market currencies slipped, extending losses from last week as a strong dollar and rising US Treasury yields outweighed upbeat factory data from China.