Top Headlines
Liquidity an Issue Again in Further Cable Collapse – Profit & Loss [subscription]
Liquidity in FX markets is again a hot topic following a sharp move lower by Cable in Asian trading.
BoE Warns of Market Fragility After Brexit Vote – Profit & Loss [subscription]
A further deterioration in investor appetite for UK assets, together with a potential rise in the number of vulnerable households and increased fragility in financial markets are among the main risks that the Financial Policy Committee of the Bank of England (BoE) is monitoring, following results of the Brexit referendum on June 23.
- Sajid Javid Urges Tax Breaks to Bolster Economy braced for downturn – Financial Times [subscription]
Japan’s 20-Year Government Bond Yield Goes Negative for First Time – WSJ [subscription]
The yield on Japan’s 20-year government bond Wednesday fell below zero for the first time ever and the 30-year yield dropped as low as 0.015%, as investors seek safety after Britain’s vote to leave the European Union
Italy Could Spark Systemic Banking Crisis, SocGen Chairman Says – Bloomberg
Italy’s banking crisis could spread to the rest of Europe and rules limiting state aid to lenders should be reconsidered, Societe Generale SA Chairman Lorenzo Bini Smaghi said.
Oscar Pistorius Sentenced to Six Years in Prison for Murder of Reeva Steenkamp – WSJ [subscription]
Oscar Pistorius was sentenced to six additional years in prison on Wednesday, capping a three-year legal saga that interrogated South Africa’s struggles with race and domestic violence as well as the double-amputee track star’s culpability for shooting his girlfriend through a locked bathroom door.
Regulatory News
Bitcoin and Prepaid Cards Face Tighter Controls Under EU Proposals – WSJ [subscription]
The European Commission proposed expanding its anti-money-laundering rules to cover virtual currencies and prepaid cards, in a bid to fight terror financing and tax evasion as revealed in the Paris attacks and the Panama Papers disclosures.
The Morning Risk Report: Post-Brexit, Keep Calm and Compliance On – WSJ [subscription]
As compliance departments try to map out their next steps following the vote by the U.K. to leave the European Union, they can best serve their companies by maintaining a steady hand and advocating the business doesn’t make any hasty decisions until the situation plays itself out further, said one compliance officer.
Company News
AIMA Outlines Brexit Impact For UK Funds – Profit & Loss [subscription]
The Alternative Investment Management Association (AIMA) has released a note outlining the various possible effects of a Brexit.
FXCH Begins Clearing Spot FX Via the Blockchain – Profit & Loss [subscription]
Irish-based startup FXCH claims to have cleared the first ever institutional spot FX transaction via the blockchain last Friday.
Blockchain start-up aims to catch people using bitcoin to pay for child porn online – CBNC
Non-profit organization the Internet Watch Foundation (IWF) has teamed up with blockchain start-up Elliptic to combat the use of bitcoin to buy child sex abuse images online, the two said on Wednesday.
Market Savvy
Brexit shock may boost, not hinder, yuan internationalization – Reuters
London’s role as a major offshore yuan hub is likely to survive Britain’s decision to leave the European Union, but the vote could help foster the Chinese currency’s internationalization by encouraging multiple yuan hubs in the bloc.
Are Treasurys Headed for 1%? New Lows in a 35-Year Downtrend – WSJ [subscription]
The yield on the benchmark 10-year U.S. Treasury note fell to its lowest level ever Tuesday, a new milestone in a three-decade downward run that even veteran traders never thought would go so far or last so long.
Oil prices edge up amid Brexit concerns, supply risks – Reuters
Oil prices were slightly higher after falling earlier in Asian trading on Wednesday amid the wider market turmoil set off by mounting concerns over the economic impact of Britain’s vote to leave the European Union.
Property fund CEOs accused of ‘doing nothing’ after Brexit vote – CNBC
U.K. property funds which halted trading this week didn’t have the liquidity to allow investors to redeem their money, the co-founder of fund manager SCM Private told CNBC Wednesday.