Top Headlines 

No-Deal Brexit Has Big Implications for Europe’s Derivatives Market – Financial Times (subscription)

LCH UK, which operates the London-based derivatives clearing house for interest rate swaps, has let its EU members know that they could be given just three months to move £38tn in notional value of swaps contracts to other venues.

Expert Testimony Resolved in Cartel Case – FX Week (subscription)

An expert witness for three former UK currency traders accused of price rigging will not testify as to whether a conspiracy existed in the case, or share his view on whether the men’s behaviour was inconsistent with the alleged crime, court documents show. 

Several Banks Escape SIBOR-Rigging Allegations in NY – Law360 (subscription)

A New York federal judge trimmed Thursday a proposed class action accusing 20 banks and their affiliates of manipulating the Singapore Interbank Offered Rate and Singapore Swap Offer Rate.

Treasury Sell-Off Fuels September Surge in Bond Trading Volume – Financial Times (subscription)

Sharp declines last month in the price of US government debt triggered a large increase in fixed income trading volumes, according to new data that highlight the vigour of the recent sell-off in the bond market. 

Regulatory News

Ireland Processing over 100 Brexit-Related Applications from Finance Firms: Central Bank – Reuters

Ireland’s central bank has seen a surge in financial services firms seeking to set up or extend their operations in Ireland as a result of Brexit and is processing over 100 applications, its governor Philip Lane said on Thursday.

ISDA Grapples with Default Scenarios in Smart Derivatives Framework – Global Custodian (subscription)

The International Swaps and Derivatives Association (ISDA) has released a white paper on smart derivatives contracts, setting out a framework for how these could be built and function in scenarios such as defaults.

Top Euro Banking Supervisor Asks for More Powers – Financial News (subscription)

National banking watchdogs still have too much discretion in implementing European law and “more needs to be done” to complete a harmonised financial services rulebook across the eurozone, according to the head of the monetary union’s Single Supervisory Mechanism.

Regulators Ink Innovation Agreement – Markets Media

The US Commodity Futures Trading Commission (CFTC) and the Australian Securities and Investments Commission (ASIC) have signed an arrangement to cooperate and support innovation through each other’s financial technology initiatives – CFTC’s LabCFTC and ASIC’s Innovation Hub.

Crypto News 

Crypto Exchange Coinbase Says Institutional Platform Head Is Leaving – Bloomberg

Coinbase, one of the largest US cryptocurrency exchanges, said Adam White, head of the institutional platform group and its fifth employee, is leaving the company. 

Malta Topping Gibraltar as Crypto Haven With Brexit Approaching – Bloomberg

In the battle among Western Europe’s crypto-haven wannabees to win fresh investment, Gibraltar looks to be losing out to Malta due to its uncertain relationship with the European Union.

Cryptocurrencies, Trading Scams Draw Increased Federal Enforcement – The Wall Street Journal (subscription)

Derivatives regulator CFTC has posted a rise in fines in fiscal 2018; SEC is to release figures later this year. 

Company News 

Virtu is Pursuing Takeover of Investment Technology Group – Bloomberg

High-speed trading firm Virtu Financial is seeking to acquire independent brokerage Investment Technology Group as pressure mounts for proprietary traders to branch out.                                                                                         

Tradeweb Chief Stokes Speculation of M&A with Trading Rival – Financial News (subscription)

The founder and chief executive of Tradeweb, one of the largest electronic bond-trading platforms, has stoked speculation about consolidation and mergers in the sector by refusing to rule out a tie-up with a leading rival.

Integral Hires Ex Lloyds and Saxo Exec Lars Olesen to Head EMEA – LeapRate

Cloud-based eFX platform company Integral has made its second significant hire in as many months, adding Lars Olesen as the company’s new Head of EMEA. 

Nomura Looks to Paris as Post-Brexit EU Lending Hub – Financial Times (subscription)

Nomura is in advanced talks with regulators about using Paris as its post-Brexit European lending hub, in another boost to the French capital’s bid to become the continent’s pre-eminent banking centre.  

Market Savvy 

Dollar Builds Toward Six-Week High Ahead of US Jobs Data – Reuters

The dollar edged toward a six-week high on Friday before monthly US jobs data that investors hope will shed light on how much longer the Fed’s aggressive rate-hiking cycle will continue.

Sterling Strengthens after EU Brexit Divorce Deal ‘Very Close’ Report – Reuters

Sterling touched a two-month high versus the euro and gained against the dollar on Friday after the European Union’s Brexit negotiators said they believed a divorce deal with Britain was “very close”.

Rupee Tumbles to New Low after RBI Keeps Rates on Hold – Financial Times (subscription)

The Reserve Bank of India has surprised markets by opting not to raise its benchmark interest rate, a decision that sent the rupee tumbling to a new all-time low of Rs74 to the dollar.