Top Headlines

ISDA Warns on EU Swaps Stay Extension – International Financing Review (subscription)

Europe’s financial institutions could be put at a competitive disadvantage if the EU adopts proposals to extend a freeze on closing out derivatives contracts with troubled firms, ISDA has warned.

Trump and Fed Keep Cap on the Dollar – Financial Times (subscription)

The dollar is stuck at the lows it reached on a cocktail of persistent political turmoil and caution from the Federal Reserve.

Shorting the Dollar Becomes a Very Crowded Trade – Bloomberg

Being bearish the dollar is the second most crowded trade across markets, according to respondents in Bank of America Merrill Lynch Global Research’s August fund manager survey.

Pound Bounces Up Off Seven-Year Euro Low After Strong Jobs Data – Financial Times (subscription)

Sterling rebounded from hitting a seven-year low against the euro after forecast-beating jobs data shielded it from an intense bout of pressure.

Euro Weakens as Investors Eye ECB Minutes – Financial Times (subscription)

The euro has taken a lurch lower this morning, falling 0.5 per cent against the dollar as investors get ready to digest the European Central Bank’s latest thinking on its stimulus programme.

Yen Gives Up Gains as Korea Tension Eases – Financial Times (subscription)

Japan’s yen has fallen to its weakest level since before last week’s flare-up in tensions between the USA and North Korea, with investor attention refocusing on economic matters as the political focus in the US has shifted elsewhere.

Making Peer-to-Peer Matching a Reality – Profit & Loss (subscription)

Paul Aston, CEO of Tixall Global Advisors, discusses the feasibility of peer-to-peer FX matching between large buy-side firms.

A Lesson from History – Profit & Loss (subscription)

And what I believe will be a catalyst for change in the industry – price.

London Maintains Lead in Private Data Plumbing Ahead of Brexit – Bloomberg

London is set to retain its position as the city with the greatest capacity in private data links, a lead that may help stem any erosion in the city’s position as Europe’s premier financial center, even after the UK leaves the European Union.

The Whale That Should Not Have Gotten Away – The New York Times

Make no mistake: There was plenty of wrongdoing on Wall Street in the years leading up to the financial crisis.

Regulatory News

Regulators Split on Implementation of Mifid Swaps Transparency – Risk (subscription)

Esma and FCA divided over when participants must determine whether derivatives are trading on-venue.

Backlash Over Trump Comments a ‘Nightmare’ for Gary Cohn, Says Former Obama Advisor – CNBC

Austan Goolsbee, chairman of the Council of Economic Advisers under the Obama administration, said the last few days of political chaos is a “basic nightmare” for the White House’s chief economic advisor, Gary Cohn.

While DC Deregulates, States Step in as Wall Street’s Watchdog: Trump ‘Is Not Going to Do Anything’ – CNBC

California lawmakers urge the US Senate to reject attempts to roll back consumer protections under the 2010 Dodd-Frank reforms.

Office of Financial Research Needs Its Autonomy – Financial Times (subscription)

Treasury aims to make staffing and budget decisions for market risk watchdog.

States Developing Single Regulatory Structure for Fintech Firms – American Banker

Faced with the prospect of a new federal fintech charter, state agencies are considering drastic new steps to streamline regulation across state lines.

Regulator Seeks Libor-Style Deal to Prop Up Euribor – Risk (subscription)

Future of €180 trillion Euribor swaps market unclear as banks yet to agree support.

Australia Follows Japan in Move to Regulate Bitcoin – Financial Times (subscription)

Australia plans to strengthen its anti-money laundering laws and regulate digital currencies such as bitcoin in the wake of a financial scandal involving its biggest bank, Commonwealth Bank of Australia.

Company News

Replacing Libor: Weary Swaps Market Eyes Long To-Do List – Risk (subscription)

New timeline focuses minds on product and contract gaps – but some end-users want to stay put.

Deutsche Börse Probe Widens to All of Top Management – Financial Times (subscription)

Prosecutors, state regulator and financial watchdog now examining German stock exchange.

Gain Capital to Raise up to $92m for Buybacks and Acquisitions – Finance Magnates

“Strategic acquisitions” are on the line as the company hires JPMorgan and Jefferies as joint book-running managers.

RegTech Spending Lags – Markets Media

As artificial intelligence, machine learning, and robotic process gather greater traction in the middle and back office, many firms are preparing for new regulatory regimes by throwing bodies at their problems.

Market Savvy

Dollar Weakens Further Against Asian Currencies – Financial Times (subscription)

Forex moves were settling down in Asia, with most currencies in the region slightly firmer against the dollar following volatility earlier in the week.

Interest Rate Cuts Bring End to Long Icelandic Krona Rally – Financial Times (subscription)

Iceland’s krona hit an 11-month low against the euro as a series of rate cuts appear to have finally brought an end to a long rally that was making it impossible to meet the central bank’s inflation target.

Emerging Stocks, FX Sail Higher as Dollar Licks Fed Wounds – Reuters

Emerging stocks sailed higher for a second day and many currencies firmed after diminishing US interest rate prospects and political upheaval in Washington hurt the dollar while choppy commodity prices cast a shadow over some markets.