Top Headlines
ICAP Names Johnson CEO of EBS BrokerTec – Profit & Loss
ICAP plc (Icap), this morning announced that Seth Johnson, currently head of strategy at its global broking division, has been appointed CEO of EBS BrokerTec, taking over from outgoing CEO Gil Mandelzis who, as announced on 21 July is leaving Icap.
Platforms Suffer Mense Horribilis – Profit & Loss
Most major trading venues will be glad to see the back of August – following the downbeat results from FastMatch and Hotspot, four other venues have reported a decline in FX volumes – two registering historic lows and a third the lowest in seven years.
Regulatory Hurdle Removed for Tullett-Icap Deal – Profit & Loss
The UK’s Competition and Markets Authority has indicated that it is satisfied with the altered terms of the proposed merger between Tullett Prebon and Icap, and will not refer the deal for an in-depth investigation.
EBS to Open NDF Pool to Non-Bank Players – FX Week (subscription)
Icap-owned trading platform EBS is considering opening up its bank-only non-deliverable forwards liquidity pool to prime brokerage customers.
CFTC Approves System Safeguards, Japanese Swaps Rules – Profit & Loss
The US Commodity Futures Trading Commission has approved two final rules for system safeguards testing requirements, as well as a comparability determination for Japan’s margin requirements for uncleared swaps.
Currency volatility is one of the many symptoms of—and threats to—the global economy’s long malaise.
2016 Midyear FX Market Volatility Report – Treasury & Risk
Over the past couple of years, corporate CFOs and their treasury, accounting, and finance departments have had to adapt to a resurgence in currency volatility.
Asset Contagion Worse Than 2008 as Markets Held Hostage to Rates – Bloomberg
Memo to macro money managers who sense that diversifying funds is harder than ever: you’re not imagining things.
Blockchain Could Revive Gold’s Role as a Payments Currency – Euromoney
The blockchain could revolutionize the case for gold as a means of exchange, offering the benefits of bitcoin – also known as digital gold – without its drawbacks.
Regulatory News
Euro Firmer on Lack of QE Extension Talk – Financial Times (subscription)
European Central Bank president Mario Draghi drew accusations of complacency after keeping a tight rein on monetary stimulus that helped extend a summer bounce for the euro.
RBA’s Stevens Weighs Into Acrimonious Currency War Debate – Australian Financial Review
The world’s major central banks are undoubtedly keeping “an eye on exchange rates” in setting their monetary policies, according to Reserve Bank governor Glenn Stevens.
BoE Explores Implications of Blockchain and Central Bank-Issued Digital Currency – EconoTimes
The Bank of England has embarked on a multi-year research programme to explore the implications of a central bank issued digital currency.
Company News
Losing $9 Billion Is Harder Than it Looks – Bloomberg
AB InBev is $9 billion down, so far, on a currency hedge the brewer arranged for its 79 billion-pound ($105 billion) takeover of rival SABMiller.
Russian Bosses Say Ruble Finding Groove as Float Shock Ebbs – Bloomberg
A measure of anticipated volatility has fallen to the lowest since the Bank of Russia stopped managing the currency in November 2014.
Market Savvy
S Korean, Japanese Markets Knocked by Reports of Nuclear Test – Financial Times (subscription)
North Asian markets were jittery on Friday amid reports North Korea had conducted a nuclear test, with investors more broadly digesting the ECB’s decision overnight to stand pat on monetary policy.
Latam Stocks, Currencies Slip on Lack of ECB Stimulus Hints – Reuters
Most Latin American stocks and currencies retreated on Thursday after the European Central Bank refrained from offering any clear hint of additional stimulus.
Sterling Firmer Ahead of UK Trade Data – Reuters
Sterling climbed on Friday, on track for its fourth straight week of gains against the dollar, as investors trimmed bets against the currency ahead of data that could show the country’s yawning trade gap shrinking in July.
The dollar snapped a three-day losing streak against the yen Thursday as investors expected central banks in the US and Japan to stay on diverging monetary-policy paths when they hold their simultaneous policy meetings late this month.