Top Headlines 

Newer Firms Muscle in on Banks’ Forex Territory – Reuters

Newer financial trading firms are expanding the volume of foreign exchange they trade in a market traditionally dominated by the big banks, industry data and rankings show.

How to Deter Would-Be Spoofers – Profit & Loss (subscription)

It was said in some quarters that when the banks were being fined for market manipulation activities a few years ago the regulators were going after the easy targets that were more likely to settle financially than fight a protracted legal action. The low hanging fruit for the legal authorities now appears to be spoofing.

FX: Pros Look at Best Uses of Rules-Based Order Routing – Euromoney
Rules-based order routing (RBOR) has become a useful tool for achieving increased trading efficiency, although it does not automatically guarantee best execution.

Euro Perched at Three-Day High on Trade Talk Hopes – Reuters

The euro held at a three-day high on Thursday as concerns about a global trade war eased after the US and the European Union agreed to begin talks on lowering tariffs.

Sterling Weakens Despite Bank of England Rate Hike Prospects – Reuters

The pound struggled to gain ground against the dollar and the euro on Thursday due to mounting uncertainty over Brexit even as investors strengthened bets on a Bank of England interest rate hike next week.

Investors Raise Shorts on Asian Currencies; US Rate Stance, Trade War Fears to Blame: Reuters Poll – Reuters

Investors raised bearish positions over the past two weeks on all emerging Asian currencies, according to a Reuters poll, as US rate hike concerns and a global trade war kept regional units under pressure.

Regulatory News 

Non-UK CCPs To Be Granted Temporary Recognition After Brexit – FOW/Global Investor Group (subscription)

The temporary recognition regime provides confidence that a back-stop will be available, according to the Bank of England.

UK Parliament Group Recommends ‘Pragmatic Approach’ to Crypto Regulation – The Trade Crypto

The All-Party Parliamentary Group on FinTech has put forward the suggestion for a set of principles or a code of conduct to act as standards in the absence of crypto regulation. 

CFTC Will Have to Spend More on Crypto Enforcement, Surveillance, Says Regulator’s Chief – Forbes

The Commodity Futures Trading Commission will have to spend more on technology for enforcement and surveillance of cyptocurrency products and other innovations, CFTC Chair Chris Giancarlo said. 

How Will EU Treat The City After Brexit? The Debate Is Still On – Bloomberg

European Union countries are still debating exactly what kind of access to give UK banks after Brexit, but some are pushing for the bloc to agree a fixed position as early as October. 

Crypto News

Traders Urge Caution on Potential Bitcoin ETFs – Sell-Side Technology (subscription)

The digital arms race around bringing institutional-grade products and tools to bear in the cryptocurrency space continues to gain momentum, but the very people needed to create a bona fide asset class in bitcoin are urging a slower pace.

First CME Futures Contract Exchanged for Physical Bitcoin Asset – The Trade Crypto

Two Wall Street firms have completed the first-ever physical Bitcoin asset exchange from a CME Bitcoin Futures contract. Futures commission merchant E D & F Man Capital Markets and crypto trading platform itBit reported the first Exchange for Physical (EFP) Bitcoin transaction on behalf of the institutional clients.

Coinbase Finds No Insider Trading of Bitcoin Cash – Fortune

Coinbase, the biggest US cryptocurrency exchange, launched an inquiry last December into whether its employees engaged in improper trading related to the digital currency known as Bitcoin Cash. Now the company has wrapped up the investigation and concluded no wrongdoing took place.

Company News 

ICE Closes $685 Million TMC Bonds Deal – The Trade

Intercontinental Exchange has completed its acquisition of TMC Bonds in a $685 million cash transaction. It said at the time of the announcement of the acquisition that TMC Bonds will offer new and complementary access points to liquidity for its customers, while expanding on the exchange’s global fixed income services across analytics, execution and post-trade. 

India, Singapore Exchanges Revive Talks as Regulators Intervene – Bloomberg

India and Singapore regulators intervened to urge two of their squabbling exchanges to come to an “amicable resolution,” spurring some optimism about an end to a dispute which has left investors without an easy way to hedge risks in one of Asia’s largest markets.

ICE Claims Lead over Curve in Sonia Futures Battle – FOW/Global Investor Group (subscription)

ICE Futures Europe will launch inter-contract spreads for 3 Month Sonia/Sterling futures on Aug 13. 

Market Savvy 

Dollar Weakens as Yen Strengthens Further in Asia – Financial Times (subscription)

The dollar weakened to a two-week low on Thursday and the euro nudged higher after the US and EU agreed steps to resolve trade tensions, while Japanese government bonds remained in focus ahead of the Bank of Japan’s meeting next week.

EM ASIA FX-Most Asian Currencies Firm on Hopes of Easing Trade Conflicts – Reuters

Most Asian currencies strengthened on Thursday, with the dollar weakening after the presidents of the US and the European Commission agreed to lower trade barriers, alleviating immediate concerns about worsening global trade relations.

Fiesta’s Not Over for Mexican Peso, Says $523 Billion Japan Fund – Bloomberg

While emerging markets as a whole are challenged by global central bank stimulus withdrawal and trade tensions, Mexico offers value and Brazil looks attractive over a longer-term horizon, in the eyes of one asset manager at a Japanese fund giant.

Venezuela to Remove Five Zeroes from Ailing Currency – Reuters

Venezuela will remove five zeroes from the bolivar currency rather than the three zeroes originally planned, President Nicolas Maduro said on Wednesday, in an effort to keep up with inflation projected to reach 1 million percent this year.