Top Headlines

OSC Queries Thomson Reuters Over Currency Trading Platform – The Globe and Mail (subscription)

The Ontario Securities Commission says Thomson Reuters has failed to provide enough information to prove that a major foreign exchange platform used by Canadian banks complies with provincial trading regulations. Early last week, the OSC warned Thomson Reuters the firm could be forced to revoke Canadian banks’ access to its Multilateral Trading Facility.

Euro Treading Water Awaits Rescue Mission From Draghi & Co. – Bloomberg

The euro is treading water, and it may need the European Central Bank’s hand in rescue. The question is whether President Mario Draghi and his council will be able to throw a life line at the currency when they meet on Thursday. The shared currency is trading around where it was about a year ago against the dollar, caught in a cross-current between opposing forces.

China Says It Has ‘No Desire’ to Devalue Yuan Amid Trade War – Bloomberg

China has no desire to boost its exports through competitive devaluation while the nation’s sound economic fundamentals are providing support to the currency, a spokesman said on Monday as US President Donald Trump took issue with the yuan’s month-long losing streak.

Regulatory News 

CFTC’s Giancarlo and Tuckman Respond to Vatican Criticism of Derivatives –CFTC

Commodity Futures Trading Commission Chairman J. Christopher Giancarlo and Chief Economist Bruce Tuckman penned a letter in defense of derivatives in response to the Bollettino published by the Vatican’s Congregation for the Doctrine of the Faith and Dicastery for Promoting Integral Human Development on May 17, 2018. Giancarlo and Tuckman address derivatives broadly, as well as the specific criticism of credit default swaps contained within the Vatican’s Bollettino.

Firms May Not Pass Esma’s Mifid II Reporting Audit – FOW/Global Investor Group (subscription)

Banks should have control of Mifid II data even when reporting is outsourced, an expert said.

UK Refuses to Give Up on Post-Brexit Plan for City – Financial Times (subscription)

The UK is to step up lobbying in EU member states in an effort to win support for Britain’s plan for post-Brexit regulation of the financial services industry, in spite of its rejection by Michel Barnier, the bloc’s chief negotiator. 

Crypto News 

Pumping and Dumping in Crypto Markets – Financial Times (subscription)

Spend five minutes browsing cryptocurrency content on Telegram, the encrypted messaging app, and you’ll soon discover dozens of ‘pump and dump’ scams orchestrated with a brazenness that makes the Wolf of Wall Street look like a pussy cat.

Crypto & Government: From Anarchy to Amity in the USA – FT Alphaville

Coinbase sets up a PAC; the Winkevii donate to Cuomo; humble crypto bros beg for acceptance.

Why South Korea is ‘Crypto Crazy’ and What That Means for the Rest of the World – VentureBeat

South Korea is truly crypto crazy. While the country has less than 1 percent of the world’s population, estimates indicate it is responsible for 30 percent of all cryptocurrency trading in the world.

Bitcoin Revival Has Enthusiasts Leaving Rival Coins In The Dust – Bloomberg

Bitcoin put more distance between itself and smaller rivals such as Ethereum and Ripple on Monday by rallying as much as 5.8 percent, building on its biggest weekly gain in months.

“Forex Clients in the Vanguard” of Crypto Trading: Beeks – FOW/Global Investor Group (subscription)

Beeks Financial Cloud is hosting Deltix’s CryptoCortex platform offering connectivity to crypto exchanges, futures and options.

Blockchain Market Infrastructure Provider Aims to Plug Crypto Infrastructure Gaps – The Trade Crypto

A blockchain market infrastructure specialist is lining up solutions to address liquidity concerns for institutional investors looking to trade cryptocurrency markets.

No Clear Signals Being Offered for Cryptocurrency Rules – Pensions & Investments

While it’s clear that investments in cryptocurrencies have exploded – to a market cap of $269 billion from $97 billion in early July 2017, according to – it’s less clear how they should be regulated and what’s in store for institutional investors. 

Company News 

Boillereau Exits HSBC – Profit & Loss

Frederic Boillereau has left his position as head of global FX and commodities and head of global markets corporate services at HSBC. Based in London, Boillereau leaves after 20 years at the bank.

Blackstone Wins EU Approval to Buy Thomson Reuters Unit – Reuters

US private equity firm Blackstone Group has secured EU antitrust approval to acquire a majority stake in Thomson Reuters’ Financial and Risk unit, the European Commission said on Monday.

Credit Agricole Outsources Listed Derivatives Operations to Asset Servicing Arm – The Trade

French investment bank Credit Agricole CIB has outsourced its listed derivatives back-office operations to CACEIS Investor Services. CACEIS, which serves as the asset servicing business of Credit Agricole, will also act as its main listed derivatives clearer. 

Market Savvy 

Trump Unlikely to Move Dollar Much Lower Say Analysts – Pound Sterling Live

Markets are sceptical that Donald Trump can trigger any material depreciation in the value of the US dollar following recent attempts to talk the currency lower. 

Sterling Edges Up But Still Beholden to Brexit – Reuters

The pound edged up above $1.31 on Tuesday as the dollar skidded lower but gains for the British currency were capped by fresh angst over Brexit and doubts about the economy.

Turkish Lira Traders Brace for Higher Rates or Market Rout – Bloomberg

Turkish policy makers will have to step up to the plate and raise interest rates on Tuesday to restore credibility or face a market rout. Turkey’s lira and bonds have rebounded from record lows earlier this month on speculation the country’s central bank will look past President Recep Tayyip Erdogan’s calls for lower borrowing costs when it sets policy on Tuesday.

Euro Skids Before PMI Data; Offshore Yuan Dives – Reuters

The euro slipped a quarter of a percent on Tuesday as investors warily eyed business activity data that will shed light on whether growing rhetoric over a trade war between the US and its trading partners in recent weeks has dampened sentiment.

Currency Manipulation, Shorter ‘Dollar’ Shorts, And Brazilian Toast – Seeking Alpha

The reasons why the IMF stepped in to rescue Argentina were perfectly clear back on June 8. The peso was in freefall, and though the Argentine government had spent two years fortifying the country’s reserve position, by borrowing heavily in the Eurobond market, that was merely orthodox thinking.