Top Headlines

HSBC’s Execution of Cairn Order “Followed Standard Industry Practice” – Profit & Loss

Documents lodged by the team representing HSBC’s former global head of FX trading Mark Johnson in his defence again market manipulation claims, indicate that should a defence case be needed it will focus on proving that the bank – and Johnson’s conduct – was in line with standard industry practice.

Dollar Rallies Ahead of Jackson Hole – Financial Times (subscription)

The US dollar is rallying ahead of this week’s Jackson Hole meeting, with some investors eyeing the possibility of Federal Reserve chair Janet Yellen hinting at a steeper rate of monetary policy tightening despite scepticism from many analysts.

Sterling Wallows Near Six-Week Low vs. Dollar – Reuters

Gains for the dollar pushed sterling back towards lows from early July, the British currency weighed down by an uncertain economic outlook that has quashed expectations of a rise in Bank of England interest rates.

Euro Slips Against Dollar Ahead of Jackson Hole – Reuters

The euro slipped against a broadly stronger dollar, amid expectations that the monetary policy message emerging from the ECB at a central bank conference this week will be a cautious one.

Renminbi Firmer as Dollar Hovers at One-Week Low – Financial Times (subscription)

Asian currencies were putting in a mixed performance as China’s renminbi led gains in the region and the euro held steady in the lead-up to a gathering of central bankers this week in Jackson Hole, Wyoming.

ISDA Calls for EU-CCP Relocation Transitional Period – The Trade

The International Swaps and Derivatives Association (ISDA) has urged policy makers to implement a transitional period should clearing be relocated once the UK exits the European Union.

Bahrain May Need to Boost Interest Rates to Protect Currency, IMF Warns – Reuters

Bahrain may need to raise its market interest rates to protect its currency and must refrain from having its central bank lend money to cover the government’s budget deficit, the International Monetary Fund said.

Regulatory News

CFTC Appoints Chief Economist – Profit & Loss

US Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo has appointed Bruce Tuckman as the agency’s chief economist.

US Regulators Approve VM Route to Capital Savings – Risk (subscription)

Guidance tips balance in debate over interest payments in settled-to-market swaps.

EU Guidance on Fund Managers Raise US Concerns – Wall Street Journal (subscription)

Recent guidance by Europe’s main securities regulator on post-Brexit rules is causing concerns among US-based asset managers.

Cohn Solidifies Lead in Race to Replace Yellen, Economists Say – Bloomberg

White House economic adviser Gary Cohn is emerging as the clear front-runner for the nomination to succeed Federal Reserve Chair Janet Yellen, according to a National Association for Business Economics survey.

Volcker Changes Might Have Little Impact with Basel III Still Around – Pensions & Investments (subscription)

Rolling back some elements of the Volcker rule that target fixed-income markets might make headlines, sources said, but liquidity and trading costs won’t improve in the corporate bond market because Basel III requirements aren’t going away.

Rubin’s Take: 1987 Crash Still Casts a Shadow – Wall Street Journal (subscription)

The crash—and ensuing liquidity crunch—raised questions about the effectiveness of clearinghouses in a crisis situation.

Here Is the Big Reason Banks Are Safer Than a Decade Ago – Financial Times (subscription)

Institutions rely less on wholesale funding of the kind that seized up in the crisis.

China Calls for Reining in Risks in Surging Bitcoin Market – South China Morning Post

China currently has more than one million bitcoin investors with total investments of several billions of yuan, says Xinhua.

Company News

New EU Bank Rules Threaten Eurex, LCH Investment Policies – Risk (subscription)

CCPs with EU bank licences currently run leverage ratios of less than half the minimum.

CME Europe Suspends Last Physical Contract – FOW (subscription)

The Merc’s European exchange and clearing house are scheduled to close on August 30.

Banks Could Unwind Non-Compliant Derivatives Contracts – The Trade

Banks may be forced to cancel trades with clients executed after 1 March if their collateral agreements had not been re-negotiated.

A New Blockchain Platform Is Taking on Ethereum – Futurism

Cryptocurrency is on the rise and, as a result, there’s no shortage of companies looking to establish themselves as an essential part of the trading process.

Swift’s Cross-Border Blockchain Trial Is Moving Into Its Next Phase – Coin Desk

Swift is one step closer to adopting blockchain.

Market Savvy

Asian Currencies Edge Higher on More Defensive Dollar – Reuters

Asian currencies edged up, with the dollar in a more defensive stance, but analysts said regional currencies’ short-term fate could be decided by the annual central banking conference in Jackson Hole this week.

Thai Central Bank Warns Off Foreign Traders as Baht Rises – Financial Times (subscription)

Action aims to take some air out of Asia’s best performing currency this year.

Quick Guide for Those Who Can’t Figure Out the Naira’s Worth – Bloomberg

For now, this is as close as it gets to a devaluation in Nigeria.