Top Headlines

HSBC’s Johnson Out on Bond After Airport Arrest in Currency Case – Bloomberg

Federal agents surprised an HSBC Holdings Plc executive as he prepared to fly out of New York’s Kennedy airport, arresting him for an alleged front-running scheme involving a $3.5 billion currency transaction in 2011.

Mandelzis to Step Down as CEO of EBS BrokerTec – Profit & Loss

Gil Mandelzis has decided to step down from his position as CEO of EBS BrokerTec, and will be leaving the company in due course, Icap announced today.

Draghi May Flag Action Ahead for ECB Under Brexit’s Shadow – Bloomberg

Mario Draghi may have longed, just once, to have a quiet monetary-policy meeting before the summer break. Never mind.

RBNZ Says Lower Rates Will Likely Be Needed; Currency Slumps – Bloomberg

New Zealand’s central bank said further monetary easing is probably needed to lift inflation, reinforcing expectations of an interest-rate cut next month. The currency fell to a six-week low.

Webinar: Will Buy Side FX Activity Shift to Order Books? – Profit & Loss

Whether more buy side FX trading activity will shift into order books, and how long this shift could take, was a key discussion point in a webinar examining FX market structure on Tuesday.

Turkey: Investment Risks Loom Large Despite Government’s Charm Offensive – CNBC

Turkey’s Deputy Prime Minister Mehmet Simsek has been on a charm offensive to reassure investors that the country’s economic ship is full steam ahead following last Friday’s failed coup by a faction of the armed forces.

Brexit to Spark U.K. Recession, Forecasters Say – Bloomberg

The U.K. economy may be heading for its first recession since 2009, with economists slashing their forecasts in the wake of the Brexit vote and now seeing two quarters of contraction this year.

Regulatory News

US Fed Bans Former FX Trader From Banking – Profit & Loss

 The US Federal Reserve Board has banned former Barclays and UBS FX trader, Matthew Gardiner, from working in the banking industry for his manipulation of FX pricing benchmarks.

Petition Pushes CFTC to Clarify Rules on Blockchain ‘Delivery’ – CoinDesk

US law firm Steptoe & Johnson LLP has filed a petition with the Commodity Futures Trading Commission (CFTC), calling on the agency to provide more clarity regarding the definition of “delivery” in blockchain-based transactions.

Singapore Finds Lapses Related to 1MDB Funds at Banks – WSJ (subscription)

Singapore said Thursday that a wide-ranging money-laundering investigation into fund flows connected with Malaysian state investment fund 1MDB has found serious lapses at three major banks that in some cases included “undue delay in detecting and reporting suspicious transactions.”

Company News

Currency, Brexit to hamper Indian IT companies in FY17 – Nikkei Asian Review (subscription)

If morning shows the day, the lackluster opening quarter of the fiscal year 2017 has set the tone for what to expect from the performance of export-oriented Indian information technology companies through March. The sector is expected to be impacted by factors such as currency headwinds and Britain’s exit from the European Union.

Hong Kong Exchange Approved to Clear USD/CNH Cross Currency Swaps – Reuters

The Hong Kong Exchanges & Clearing Limited said on Thursday it had received regulatory approval to provide clearing for cross currency swaps (CCS) and it plans to launch the service in August.

Cryptocurrency Platform Ethereum Gets a Controversial Update – WSJ (subscription)

The custodians of the popular cryptocurrency platform Ethereum implemented a controversial change to it Wednesday, but broad questions remain about its long-term impact.

Market Savvy

Yen touches six-week low, eyes on ECB – Reuters

The dollar touched a six-week high against the yen on Thursday, bolstered by reports of a doubling of initial expectations for economic stimulus from Tokyo and bets that the Bank of Japan (BOJ) will ease policy next week.

Ruble Slides Third Day as Kremlin Aide Warns on Currency Gains – Bloomberg

The ruble erased gains, heading for a third day of losses as a Kremlin adviser echoed President Vladimir Putin’s warning that the Russian currency may have appreciated too far.

Asian shares at nine-month highs as oil prices, Fed hike views strengthen – Reuters

Asian stocks climbed to nine-month highs on Thursday, helped by a recovery in global oil prices, while the dollar strengthened against the safe-haven yen on resurgent expectations of a U.S. interest rate hike this year.

Yuan Direction: Where Is the Currency Heading – Bloomberg

Luke Spajic, head of portfolio management for emerging Asia at Pimco, discusses the rally in the markets and the outlook for the yuan and the bond market.

Industry Events

Profit & Loss Scandinavia, 13 September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL