Top Headlines

Offshore Ringgit Trade Is Against Malaysia’s Policy: Central Bank – Reuters

Malaysia’s central bank said the introduction of ringgit futures on the Singapore Stock Exchange and the Intercontinental Exchange and its offshore trading is inconsistent with Malaysia’s policies.

Trump Doubling Down on Rhetoric Rattles South Korean Markets – Bloomberg

South Korea’s stocks and currency fell after President Donald Trump warned North Korea that if it “does anything” to the US or its allies “things will happen to them like they never thought possible.”

Dollar Slides Amid North Korea Tensions – Wall Street Journal (subscription)

The US dollar fell to a two-month low against the Japanese yen as escalating tensions between the US and North Korea sent investors into assets seen as safe.

Sterling Near Three-Week Lows as Outlook Cloudy – Reuters

Sterling held near a three-week low against the dollar as investors grew wary about the outlook of the British economy after a mixed bag of data this week.

Morgan Stanley Predicts Euro Parity with Pound for 2018 – Reuters

US investment bank Morgan Stanley raised its currency forecasts for the euro, predicting it would hit $1.25 early next year and be one-for-one versus Britain’s pound for the first time in its 18-year history.

Yen Strengthens Past ¥109 as Rattled Investors Seek Havens – Financial Times (subscription)

Japan’s yen firmed to below ¥109 per dollar as markets embraced a risk-off attitude in the face of heightened geopolitical tensions between the US and North Korea.

China’s Yuan Eases, But Remains on Track for Best Week Since 2005 – Reuters

China’s yuan weakened against the US dollar after a weaker-than-expected fixing, as the dollar’s recent broad losses helped set the stage for some bargain hunting, traders said.

Loonie Bulls Face Risk in Widening US-Canada Two-Year Spread – Bloomberg

Canadian dollar bulls, sporting a gain of nearly eight percent against the US dollar over the past three months, can’t ignore the widening yield gap between US and Canadian two-year debt.

Aussie Bulls Short Kiwi as RBNZ Talks Tough Before Election – Bloomberg

As the Aussie falters in its rally against the greenback, bulls may find a better bet by backing it against the New Zealand dollar.

CLS Volumes Dip Slightly in July – Profit & Loss

The average daily volume (ADV) submitted to CLS was $1.6 trillion in July, down 2% month-on-month, but up 11.9% year-on-year.

P&L Talk Series with John Deters – Profit & Loss (subscription)

Profit & Loss talks to John Deters, chief strategy officer and head of multi-asset solutions at CBOE, about the potential for cryptocurrencies such as bitcoin to trade on regulated exchange platforms.

Speed Is Losing Its Edge in FX – Euromoney

While Aesop was undoubtedly not thinking about currency markets when he wrote the story of The Tortoise and the Hare, low latency FX traders are increasingly realizing that speed does not necessarily equate to success.

Regulatory News

Mifid Vies with Brexit as City Traders’ Main Problem – Financial Times (subscription)

For City institutions, the question of expanding EU business after Brexit is being usurped by pending comprehensive new trading rules for the continent.

Foundations for Post-Libor System Sliding Into Place – Reuters

Critical steps for replacing Libor could be taken by next year, British industry officials told Reuters, increasing the chances of a smooth transition from the interest rate benchmark used to price financial contracts worth tens of trillions of pounds.

Asset Managers Grapple with Implications of Cost Transparency – Risk (subscription)

Regulatory push for openness heightens concerns about impact on trading.

Today’s Financial Crisis: We Forgot the Financial Crisis of 2007 – Wall Street Journal (subscription)

The measure of a true financial crisis is that money itself comes into question.

Company News

NEX Unveils EMIR RTS Rewrite Solution – Profit & Loss

NEX Regulatory Reporting has launched a new solution to support the EMIR Regulatory Technical Standards (RTS) Rewrite.

Cartledge: Direct Is Moving to Single-Ticket Execution – FX Week (subscription)

“We don’t know if the order is for the full amount or not, so we don’t want to call it full-amount trading,” says Cartledge.

Cochinos Joins UBS – Profit & Loss

Richard Cochinos has joined UBS as head of macro sales and trading content, knowledge network Americas. He will be based in New York.

CTAs Limp into Positive Territory in July – Profit & Loss

Managed futures traders gained 0.64% in July, according to the Barclay CTA Index compiled by BarclayHedge.

Commerzbank’s Curious Way to Get Bitcoin Exposure Without Actually Buying It – Bloomberg

The firm is marketing a structured note that allows investors “to get exposure to bitcoin without actually investing in it directly.”

Market Savvy

South Korean Won Leads Asian Currencies Lower – Financial Times (subscription)

Currencies across the Asia Pacific region were losing ground to the greenback amid renewed fears over a potential conflict between the US and North Korea.

Markets’ Wildest Assets Are Becoming a Haven While Korea Tension Mounts – Bloomberg

Korean won makes up more than 40% of ethereum trading volume.

Philippine Central Bank Says Peso `Manageable’ as Currency Drops – Bloomberg

Philippine central bank Governor Nestor Espenilla said the peso will trade within “manageable levels” with a flexible exchange rate policy. The currency extended declines.