Top Headlines 

Korean Won Set for Worst Fall in Nearly Eight Weeks on US-Korea Tensions – Reuters

Most Asian currencies stumbled with the Korean won destined for its biggest fall in nearly eight weeks as North Korea warned it is “carefully examining” plans for a missile strike on the US Pacific territory of Guam.

Dollar and South Korean Won Slip Amid North Korea Tensions – Wall Street Journal (subscription)

The dollar pared gains and the South Korean won slid as tensions between the US and North Korea escalated.

Sterling Hits 10-Month Low Against Euro After Consumer Spending Fall – Reuters

Sterling hit a 10-month low against the euro as investors grew more bearish about Britain’s economic outlook after consumer spending fell for a third month in a row in July.

Investors Jump Back Into the Euro as Going Short Proves ‘Lethal’ – Bloomberg

Hedge funds. Asset managers. Central banks. These are just some of the players in the $5.1 trillion-a-day currency market who are buying the euro after shunning it over the past three years.

Citigroup to Pay $130 Million to End Libor Rigging Lawsuit in US – Reuters

Citigroup has agreed to pay $130 million to settle private US antitrust litigation accusing it of conspiring with rivals to manipulate the Libor benchmark interest rate.

Court Allows Swaps Suits to Proceed – International Finance Review (subscription)

A US Federal District Court has given the go-ahead for investors to pursue partial claims against some of Wall Street’s largest banks, over allegations that they conspired to limit competition in the US$368trn over-the-counter interest rate derivatives market.

Thomson Reuters Hits New Non-Spot Record in July – Profit & Loss

Thomson Reuters says that average daily volume (ADV) in non-spot FX products was $299 billion in July – the highest recorded by the platform since it started reporting data in January 2013.

China’s Debt Crackdown Gets a Big Shrug from Global Investors – Bloomberg

The Chinese leadership has this year made its strongest commitment yet to curb financial risks and rein in spendthrift local officials, yet the campaign has spurred barely a ripple of concern among global investors.

CME Withdraws European Clearinghouse Registration – Waters Technology (subscription)

CFTC vacates European clearinghouse registration at CME’s request.

EU Parliament Makes Futile Attempt to Legislate Interbank FX Out of London. Not a Chance… – Finance Feeds

Clearing of derivatives will never be pushed out of its natural home by bureaucrats.

Banking Watchdog Warns of Risks from ‘Cliff-Edge’ Brexit – Financial Times (subscription)

The UK’s most senior supervisor of banks and insurers has given his starkest warning to date over the risks the financial system faces from a cliff-edge Brexit without a transition period.

Regulatory News

Wall Street Claim That Rules Imperil Trading Is Undercut by SEC – Bloomberg

US Securities and Exchange Commission economists are throwing cold water on Wall Street’s persistent complaints that post-crisis regulations have made markets more susceptible to shocks.

Despite SEC Warning, Wave of Initial Coin Offerings Grows – The New York Times

The cautionary words of American regulators have done little to chill a red-hot market for new virtual currencies sold by start-ups.

SEC Launches Exam Sweep of Third-Party Messaging Usage – HFM Week (subscription)

US agency to probe firm’s oversight of staff using LinkedIn, WhatsApp and other services.

Who Will Be the Next Fed Chair? – American Banker

President Trump has been coy about whether he plans to renominate Fed Chair Janet Yellen, who first became chair in 2014 after serving as vice chair at the agency since 2010.

Lawmakers Want to See Bitcoin Become an Official Currency in Australia – Coindesk

Lawmakers in Australia are reportedly pushing for the recognition of bitcoin as an official currency.

Company News

LCH and Euronext Agree Derivatives Clearing Deal – Profit & Loss

LCH has signed binding terms with Euronext NV (Euronext) for the continued provision of clearing services for listed financial and commodity derivatives with LCH SA, the Group’s continental European operating subsidiary.

TP Icap Considers More Deals After ‘Mixed’ First Half – Financial Times (subscription)

Interdealer broker cut 175 jobs as part of the integration of Icap business.

Start-Up Sef trueEX Takes Larger Slice of Swaps Trading Pie – The Trade

Start-up swap execution facility (Sef) trueEX has become one of the most used electronic platforms for interest rate derivatives in the US, marking a significant shift in the swaps trading landscape.

Mireille Dyrberg: Nex Parts Ways with TriOptima COO Dyrberg – FOW (subscription)

Mireille Dyrberg is set to leave Nex Optimisation in late September after nearly a decade.

R3 and Major Banks Tackle Trade Finance – Business Insider

A number of groups are exploring the use of blockchain or distributed ledger technology (DLT) to boost efficiency in the trade finance sector, including consortium R3, which announced its latest effort in the area this week.

XTX Markets Sees its Profits Surge During FY 2016 – Finance Magnates

The latest figures highlight growing revenues and profits for the non-bank foreign exchange liquidity provider despite a strong uptick in costs for the group.

Market Savvy

US Nuclear Jitters Boost Swiss Franc – On Course for Best Day Since ’15 – Financial Times (subscription)

The Swiss franc is the stand out beneficiary from escalating nuclear tensions between the US and North Korea, with a modest jolt of nerves denting stocks and boosting haven assets.

South Africa Rand Slides After Zuma Vote – Financial Times (subscription)

The South African rand fell as much as 1.4 per cent against the dollar, reversing the bulk of its gains from the prior day session after president Jacob Zuma narrowly survived a vote of no-confidence that would have forced his resignation.

Bitcoin Climbs to Record, Nearly Three Times the Price of Gold – CNBC

Bitcoin hit a record high above $3,500, more than tripling in value for the year.