Top Headlines 

NEX Markets Report Sees Improved FX Market Behaviour – Profit & Loss

NEX Markets has released a new report, which it says demonstrates greater transparency and improved behaviour in the FX market since the FX Global Code came into effect in May 2017.

CTAs: All Grown Up – Profit & Loss

Susan Roberts, product specialist and director of investor relations at Campbell & Company, talks about how the CTA industry has matured, what purpose these funds are really supposed to fulfill within a portfolio and why performance might be set for an uptick. 

Ten Years On: The Revolution in Investment Banking is on Hold – Financial News (subscription)

In the decade since the financial crisis far too many things remain the same, but there is reason to think change is still on the way.

Regulatory News

MiFID II Starts Spreading to Developing Markets – Tabb Forum

MiFID II’s impact is being felt across the globe. While non-EU firms do not have a direct obligation to comply with the regulatory framework, pressure to become ‘MiFID II-friendly’ is intensifying.

UK Reviews Market Infrastructure for Libor Transition – MarketsMedia

A Bank of England committee is setting up a working group to engage with technology and infrastructure providers to ensure that the industry will be operationally ready for the transition to new reference interest rates.

Pressure on Carney to Reveal if He Will Stay at Bank of England – Financial Times (subscription)

Mark Carney is signalling a willingness to stay on as Bank of England governor beyond next year as he faces mounting pressure to reveal his intentions. 

Crypto News 

An Evolving Asset Class: The Future of Cryptocurrencies – Tabb Forum

Bitcoin has died 900 times. Yet it continues to make headlines. The maturation of the crypto market will likely involve the failure of many over-hyped cryptocurrencies with little substance behind them. And regulation will become increasingly important for the evolution of crypto assets.  

Deutsche Bourse Sets Up Dedicated Blockchain and Crypto-Assets Unit – Finextra

Deutsche Bourse has set up a dedicated ‘DLT, Crypto Assets and New Market Structures’ unit to further advance its work into the transformational potential of blockchain technology.

The Rise of the Crypto Hedge Fund: Opportunities and Challenges – Regulation Asia

The extraordinary returns generated by cryptocurrencies have led to a frenzy of investment activity and interest from investors. Several new crypto hedge funds have emerged, and cryptocurrency is fast establishing itself as a mainstream asset class. 

Rakuten is About to Buy a Bitcoin Exchange for $2.4 Million – CoinDesk

Japanese e-commerce giant Rakuten is planning another step into the cryptocurrency industry with the acquisition of a local bitcoin exchange. 

Company News 

Thomson Reuters Launches RTS 27 Now – Profit & Loss

Thomson Reuters has launched RTS 27 Now, a targeted reporting solution that leverages its Velocity Analytics platform to help banks that have newly registered as Systematic Internalisers under MiFID II complete their first regulatory report.

NatWest Bids for Order-Book Management Business – FX Week (subscription)

The UK dealer’s frosted glassbox serves as a segregated order execution desk for fixings and stop losses.

Berenberg AM Adopts BextX – Profit & Loss

Berenberg Asset Management has announced its adoption of BestX, the FX analytics software provider, to deliver greater transparency and evidence best execution to their clients. 

Dealers Move to Dismiss TrueEX Boycott Complaint – Global Capital (subscription)

Dealer banks already entangled in a US antitrust case arising from the interest rate swaps market have filed to dismiss an amended complaint made by electronic trading platform provider TrueEX.

Market Data Providers Must End Fee Disparities: ParFX – Global Investor (subscription)

ParFX CEO Dan Marcus calls for more transparency as providers profit from unbundling data packages and price negotiation.

SocGen to Pay Around $1.4bn in Penalties Tied to US Sanctions – Financial News (subscription)

The penalties relate to alleged manipulation of Libor rates and transactions involving Libyan counterparts. 

Market Savvy 

Dollar in Broad Rise Against Developed and Emerging Market Peers – Financial Times (subscription)

The end of summer is doing nothing to cool the dollar’s temperature. The greenback is once more on the charge against all major currencies and those in the emerging markets.

Fitch Cuts Turkey Growth Forecast and Warns of ‘Downside Risks’ – Financial Times (subscription)

Fitch has cut its outlook for economic growth in Turkey and warned of “significant and widespread downside risks”.

Sterling Falls as Doubts Build over Brexit, BoE’s Carney – Reuters

The pound sank to a one-week low on Tuesday on rising doubt among investors about the progress of Brexit talks and the future leadership of the Bank of England.

Emerging Markets Under Stress as FX Correlations Rise Sharply – Financial Times (subscription)

Emerging markets are a diverse group based on their respective economic stories. But as investors look to cut their exposure to the asset class, EM stress is rising.