Top Headlines

Johnson Wins Bail Application – Profit & Loss

Former HSBC FX chief dealer Mark Johnson has won his bail application in the US Appeals Court and will been released subject to terms laid down by the District Court.

Dollar Perched at 11-Month Highs as Trade Concerns Weigh – Reuters

The dollar hit a 11-month high against a basket of its rivals as an escalating trade conflict kept investors from buying higher-yielding currencies and markets braced for growing volatility.

Sterling Pinned at Seven-Month Lows Before Parliament Brexit Vote – Reuters

Sterling slid to a fresh seven-month low against the dollar as concerns over the latest round of Brexit negotiations sapped demand for the British currency before a central bank meeting on Thursday.

Mario Draghi Reinforces Dovish Message on Interest Rate Rises – Financial Times (subscription)

Euro falls 0.8 per cent against the dollar following ECB chief’s Sintra speech.

Emerging Asia to Suffer Most from Strong Dollar, Macquarie Says – Bloomberg

Asia’s emerging-market currencies may be the biggest casualties of dollar strength this year, Macquarie Bank says.

Time Runs Out for £26tn Financial Contracts Affected by Brexit – Financial Times (subscription)

Banks and insurers do not now have time to rewrite all of the £26 trillion of derivatives and 36 million insurance policies that may be disrupted by Brexit, a report warns.

Broker Commissions Battered by Mifid II – Financial News (subscription)

Rule changes have the intended effect, but Brexit planning and dud data overshadow the success of the updated market regulations.

Regulatory News 

ECB Poised for Power Over Euro-Derivatives Clearing Post-Brexit – Bloomberg

The European Central Bank edged closer to gaining power over financial clearing, a lucrative business dominated by London and a flash point in the Brexit negotiations. 

European Banks Face ‘Bottleneck’ to Complete EBA Stress Test – Risk (subscription)

New accounting rules and supervisor demands squeeze teams prepping for 2018’s exercise.

HK Regulator Consults on OTC Uncleared Margin Rules – FOW (subscription)

The Securities and Futures Commission proposed refining Hong Kong’s OTC regime in December 2017.

Crypto News 

Europol Meets Cryptocurrency Exchanges to Thwart Criminals – Financial Times (subscription)

Concern mounts over exploitation of nascent technology for money-laundering.

Industry Heavyweights Partner for Blockchain Margin and Collateral Service – The Trade

Nasdaq, EuroCCP, Euroclear and ABN AMRO Clearing use blockchain for collateral processes in ‘breakthrough for CCP model’.

Crypto Celebrity McAfee Stops Touting ICOs, Citing ‘SEC Threats’ – Bloomberg

One of the world’s most prominent promoters of initial coin offerings is calling it quits.

Pantera Says Crypto Hedge Fund Underperformed Bitcoin Last Month – Bloomberg

The digital-currency market has had a tumultuous year, and crypto hedge funds are feeling the pain.

Cryptocurrencies Fall as Korean Exchange Says $32 Million of Coins Stolen – Bloomberg

Cryptocurrencies dropped after the second South Korean exchange in as many weeks said it was hacked, renewing concerns about the safety of digital-asset trading venues.

Company News

CLS Confirms FX Volume Boost in May – Profit & Loss

Data from CLS Group reinforces the message from the FX dealing platforms that May was a busy month in spot FX markets.

Northern Trust Partners with Lumint – Profit & Loss

Northern Trust is partnering with Lumint Corporation, a provider of currency management services, to enhance its suite of FX solutions for asset managers and asset owners globally.

Flow Traders Goes Live to Make FX Splash – FX Week (subscription)

With 700-plus approved counterparties and significant in-house flows from its ETP business, Flow Traders prepares to realise its FX ambitions.

Market Savvy

Risk of Chinese Currency Devaluation Rises with Latest Tariffs Threat – Wall Street Journal (subscription)

The Trump administration’s threat to slap tariffs on another $200 billion in Chinese goods has reignited fears that Beijing will turn to a powerful but risky weapon: a depreciation of its currency.

Argentina’s Market Rout Leaves Investors Split on Outlook – Financial Times (subscription)

Not all funds willing to buy the dip as 100-year bond trades well below 80 cents.

Australian Dollar May Drop to 70 Cents This Year: BlackRock – Bloomberg

Australia’s dollar is at risk of sliding to 70 US cents this year as China’s economy slows and the Federal Reserve keeps raising US interest rates, according to BlackRock.