Top Headlines
CME Chairman: EU Regulators Putting US Clearing Houses at Disadvantage – Profit & Loss
CME’s executive chairman and president, Terry Duffy, has accused European regulators of deliberately disadvantaging US clearing houses in order to provide their European counterparts with a competitive advantage.
What Now Following 360T Sale? – Profit & Loss
There are three obvious questions that spring to mind as a result of the latest M&A news in the FX world this week.
A Perfect Storm: Why FX is the Market of Opportunity – TabbForum
Some predict FX volume will exceed $10 trillion by 2020. But the predominant technological infrastructure that underpins the global currency market is still not suited to facilitate the rate and pace at which today’s traders expect and demand to operate. Fortunately, this is changing.
Banks Pitch Swaps as Alternative to Buying Stock – Wall Street Journal (subscription)
Banks are nudging certain hedge-fund clients to use derivatives instead of actual stocks when placing some bets, an effort aimed at lessening the impact of new capital rules on the banks’ businesses.
The One Chart You Need to Understand Fintech – DisruptiveFinance.co.uk
Traditional finance providers, such as banks or insurance companies, are being challenged by new players such as Lending Club or Transferwise. These startups want to disintermediate the incumbents and revolutionize the financial world.
Regulatory News
Bank of England Creates Capital Buffer for Banks to Absorb Losses – Reuters
The Bank of England has made changes to the way banks hold capital above the mandatory minimum in an effort to increase transparency and better absorb losses in the event of a financial shock, such as a housing market crash.
Five Takeaways from the FCA’s Benchmarks Review – eFinancial News (subscription)
Financial News has identified the five key messages from the FCA’s review of benchmarks.
ECB Steps up Bid for Extra Voting Rights over Clearinghouses – FS Core (subscription)
The European Central Bank has stepped up its bid for more voting power over clearinghouse supervision, MLex has learned. The move comes after the European Securities and Markets Authority blocked the central bank’s attempt to increase its regulatory influence over clearing counterparties.
The European Securities and Markets Authority (ESMA) has published today an update of its list of central clearinghouses.
Trigger for Global Shift into Renminbi Assets – Financial Times (subscription)
Inclusion of the renminbi in IMF’s special drawing right currency unit could prompt $100bn of official buying.
Company News
Man Group Surges After Profit Beats Estimates on Higher Fees – Bloomberg
Man Group Plc, the world’s largest publicly traded hedge fund firm, reported profit for the first half that beat analysts’ expectations as performance fees almost doubled.
ITG Says it May Pay a Record $20.3 Million Dark-Pool Penalty – Bloomberg
Investment Technology Group Inc. is in talks to settle allegations its equity dark pool ran afoul of U.S. regulations, with the possibility of paying a record $20.3 million penalty.
BGC Partners, GFI Group Report Second Quarter 2015 Financial Results
BGC’s second quarter post-tax distributable earnings grew by 48.6% year-over-year to $64.6 million, while it revenues increased by approximately 59.1% to $684.6 million, according to the results that it released yesterday.
Barclays Revenues Grow – Profit & Loss
In its Interim Statement for the first half of 2015, Barclays has revealed that its macro products business, which includes foreign exchange, saw revenues increase by 12%.
Thomson Reuters Sees Revenue Dip on Currency Impact
Thomson Reuters’ half year financial report shows the firm’s revenues were down 4%, but it says this was entirely due to the impact of currency movements. Revenues grew 2% before the currency effect.
Market Savvy
Brazil Opts for Steep Rate Hike in End to Bold Tightening
Brazil raised interest rates to a nine-year high on Wednesday, but signaled it was ending one of the world’s most aggressive tightening cycles despite fears that a weakening local currency could stoke already high inflation.
The parsing of the Federal Reserve Statement is like reading tealeaves and the seers are saying that September is still in play. This matters because the previous 2 meetings in play had the Fed back away from language encouraging hike speculation.
Dollar Firms on Fed Rate Expectations, Awaits US GDP Report
The dollar firmed to a near one-week high on Thursday ahead of U.S. gross domestic product data that could reinforce expectations that the Federal Reserve is on track to raise interest rates as early as September.
Press Releases
Credit Suisse Releases Mid-Year Hedge Fund Investor Sentiment Survey
Credit Suisse announces results of its mid-year Hedge Fund Investor Sentiment Survey, which polled over 200 global institutional investors representing nearly USD 700 billion in hedge fund investments. This survey follows Credit Suisse’s Annual Global Investor Sentiment Survey published in March 2015.
The Depository Trust & Clearing Corporation (DTCC) today urged legislative and industry action to address three key obstacles that are hindering achievement of the G20 transparency goals set forth by policymakers in the aftermath of the 2008 financial crisis.
The Great Cyberwar with the Financial Industry – Fidelis
Are financial firms protected from advanced threats? Recent high profile attacks have raised questions about whether the financial industry’s security is keeping pace with the threats it faces. Cybersecurity professionals describe the increasing sophistication of cybercriminals, and the tools ranging from behavioral analytics to encryption decoders that need to be used to fight them.