Top Headlines
Investment Banks in 2Q18: FICC and Equities – Euromoney
The story of the quarter was of course Goldman Sachs, which has engineered a recovery from its terrible 2017 in FICC in some style. JP Morgan remains the biggest business, and, at the other end of the scale, some of the Europeans – HSBC, Deutsche, BNP Paribas – had a torrid time. FX movements hurt them, as did European conditions.
Could Simplifying the Appraisal Process Reduce Unfair Dismissal Cases? – Profit & Loss (subscription)
By simplifying what should be a fairly routine part of the desk manager’s work and establishing the need for honesty (and proportionality) in appraisals, there may be a chance that the next generation of people in FX do not suffer the trauma that too many of the current generation have.
FX Global Code: Buyside Awareness Grows – Practice Insight (subscription)
Asset managers and their investors are increasingly interested in whether or not their counterparties take conduct seriously.
Chances Rise of ‘No Deal’ Brexit That Would Hit Sterling: Reuters Poll – Reuters
The likelihood Britain crashes out of the European Union without a trade deal has increased, an outcome that would hurt an already weak pound, according to economists and foreign exchange strategists polled by Reuters.
CTAs Post Negative Returns for July – Profit & Loss
Following a marginal uptick in performance in June, CTAs faced headwinds again as all the Societe Generale (SG) indices posted negative returns in July.
Six Books That Will Teach You About The Real Wall Street – Forbes
In an age where Wall Street remains largely misunderstood by non-Wall Streeters, and many on Wall Street must maintain such a laser focus on the task at hand that they can’t see the forest for the trees, hearing the stories that explain how the market really works and why it works the way it does is more important than ever.
Regulatory News
CFTC to Exempt Non-US Swaps Clearers from Registration – Global Investor (subscription)
Chairman Giancarlo says exempting clearing firms with comparable regulation will avoid the “untenable state of overlapping”.
- CFTC Proposes Rules to Simplify Process for Foreign Clearing Organizations to Obtain DCO Registration Exemption – CFTC
- Statement of Chairman J. Christopher Giancarlo Regarding the Proposed Rule on Exemption from DCO Registration – CFTC
FSB Gives Mostly Positive Review of Post-Crisis Derivatives Rules – Financial Times (subscription)
Global regulators have marked their own homework, giving themselves a largely positive report for post-crisis reforms designed to make the $544tn derivatives market safer.
Britain Walks Brexit High Wire Over Financial Services – Reuters
Britain must avoid tying Brussels up in red tape or antagonising its soon to be former European Union partners and the United States if it is to maintain access to the bloc’s financial services market after Brexit.
Crypto News
Bitcoin fell sharply on Wednesday after the US Securities and Exchange Commission delayed a decision on a proposed bitcoin exchange-traded fund, which would have been the first financial product of its kind.
These May Be the Three Biggest Hurdles to a Bitcoin ETF – MarketWatch
On the heels of the Securities and Exchange Commission’s decision to deny the Winklevoss twins their application for a digital asset-related exchange-traded-fund, bitcoin pundits are wondering what’s thwarting the first ETF underpinned by bitcoin.
Ex-Regulators Join Advisory Board of Cryptocurrency Startup Omniex – Reuters
Former US Securities and Exchange Commission chairman Arthur Levitt and former Federal Deposit Insurance Corp chair Sheila Bair have joined the board of advisors of cryptocurrency trading platform Omniex.
Company News
Regis-TR in Talks With FCA Over UK Trade Repository – Global Investor (subscription)
The firm could have to set up a UK entity if it is not allowed to operate as a foreign trade repository after Brexit.
Exits Continue from BNP Paribas’ FX Algo Team – Profit & Loss
BNP Paribas has seen a raft of departures from its FX algo team.
FX Volumes Dip on SGX Despite USD/CNH Surge – Profit & Loss
The total volume of FX futures traded on SGX in July was 1.7 million, down 8% month-on-month, despite the exchange seeing record volumes in its USD/CNH futures.
Thomson Reuters on Offense as Blackstone Deal Nears – Reuters
Thomson Reuters said it was thinking about acquisition opportunities after reporting quarterly earnings that were ahead of expectations on Wednesday and reaffirming its 2018 forecast.
Market Savvy
Sterling Nears One-Year Low as Brexit Selloff Mounts – Reuters
Sterling extended losses on Thursday, nearing a one-year low against the dollar, as investors grew increasingly nervous that Britain will leave the European Union without an agreement on its future relationship with the bloc.
Turkish Lira and Russian Rouble Hit By US Tensions – Financial Times (subscription)
Rising geopolitical tensions with the US prompted sharp selling in the Turkish lira and Russian rouble on Thursday morning, after Washington flexed its financial powers against both countries.
Bearish Bets on Most Asian Currencies Recede Slightly: Reuters Poll – Reuters
Investors trimmed bearish bets on most emerging Asian currencies over the last two weeks, as renewed trade war concerns were cushioned by regional central bank efforts to shore up their currencies, a Reuters poll showed.
Yen Strengthens on Growing Risk Aversion – Reuters
The Japanese yen rose broadly on Thursday in an apparent reflection of concern among investors about an uptick in geopolitic tensions from the US-China trade war to Brexit.
The Chinese Yuan Will Strengthen Against the US Dollar, HSBC says – CNBC
The Chinese yuan, which has weakened by around 5 percent against the US dollar this year, will likely stabilize on a slightly stronger footing than current levels, from now until the end of the year, according to Europe’s largest bank HSBC.