Top Headlines 

Oversight Row Could Block EU Firms from US Clearing: Giancarlo – Risk.net (subscription)

If European lawmakers will not defer to the US’s supervision over its own central counterparties, they will only have themselves to blame when EU firms are cut off from vital markets. That was the message from the chair of the Commodity Futures Trading Commission during an appearance before the House Committee on Agriculture on Wednesday.


FIA Releases Half-Year Data on Futures and Options Volume Trends – FIA

Asia Pacific and North America exhibit strong growth; interest rate volume and open interest continue upward rise; Brazil’s B3 surpasses ICE in first half volume ranking; high growth rates among smaller exchanges; CME ahead of Cboe in bitcoin futures volume.

Are Active FX Funds About to Turn a Corner? – Profit & Loss

Despite a decline of investment into actively managed FX funds in recent years, speakers at the Profit & Loss Forex Network New York conference expressed optimism for these funds.

China’s Yuan Poised for Longest Weekly Losing Streak Since 2015 – Bloomberg

China’s yuan is headed for a seventh weekly drop, the longest slide since after a shock devaluation in 2015, stoking bets the authorities will tolerate more weakness as long as there’s no sign of speculative short trades.

Dollar Hits Five-Day High Before US GDP Data – Reuters

The dollar rose on Friday to its highest level in five days as investors waited to see if US economic growth figures do anything to interrupt its months of strength.

Sterling Set for Third Weekly Drop as Brexit Concerns Weigh – Reuters

Sterling edged lower on Friday and is poised to register its third consecutive weekly loss as concerns about the progress of Brexit negotiations trumped any optimism ahead of a likely interest rate hike next week.

Regulatory News 

Industry Seeks Smaller ‘Big Bang’ for Margin – Risk.net (subscription)

The initial margin “big bang”, which will see more than 1,000 buy-side counterparties begin to post collateral against their non-cleared derivatives trades from 2020, could be about to get significantly smaller. Backed by new analysis, industry participants are calling on global regulators to raise the threshold for the fifth and final phase of the regime from $8 billion to at least $50 billion, in an attempt to reduce what they claim is unnecessary work.

UK Regulators Welcome Brexit ‘Back-Stop’ Legislation – Central Banking (subscription)

UK regulators have welcomed the publication of draft laws that could avoid an abrupt rupture between UK and European financial markets in the event of a ‘hard’ Brexit. The draft “statutory instrument” creates temporary permissions for firms based in the European Economic Area to continue to operate in the UK.

The Curious Case of the Vatican and Credit Default Swaps – American Banker

Are credit default swaps harmful to consumers and society at large? The Vatican reignited a debate on the topic recently when it issued a document chastising the financial services industry for immoral behaviour.

Crypto News

Crypto Futures Expansion Won’t Happen Soon, CME’s Duffy Says – Bloomberg

CME Group’s CEO Terry Duffy said that in his nearly four decades in trading, Bitcoin futures “might have been the most controversial launch of a product” and he reiterated the company’s not in a hurry to list more cryptocurrency-related contracts.

SEC Rejects Winklevoss Bitcoin ETF Proposal – The Wall Street Journal (subscription)

The Securities and Exchange Commission on Thursday rejected a proposal to package Bitcoin into an exchange-traded fund, the latest indication that regulators are still uneasy with the volatile and largely unpoliced cryptocurrency market.

Hedge Fund Association Survey Reveals Crypto as Second Most Popular Strategy – The Trade Crypto

A survey from the Hedge Fund Association has revealed that crypto strategies are the second most demanded from investors and clients behind only equity hedge.

As Crypto Meets Prediction Markets, Regulators Take Notice – Bloomberg

After going live on July 10, Augur allows anyone to create contracts to predict future events such as the outcome of basketball games, elections, the price of Bitcoin or the closing value of the Dow Jones Industrial Average. The platform has attracted attention from regulators who oversee derivatives, while Augur’s developers maintain they’re not the ones creating the bets.

Up to Two-Thirds of Bitcoin Transactions Have No Economic Value – Bloomberg

On any given day, as much as two-thirds of the transaction activity registered on the Bitcoin network has nothing to do with buying goods and services or trading the virtual currency.

Company News 

B3 Surpasses ICE in H1 Volume Ranking: FIA Report – FOW/ Global Investor Group (subscription)  

The Brazilian exchange giant is now the third largest derivatives exchange in the world.

Barclays Makes Two Senior Appointments – Profit & Loss

Barclays has appointed Fabio Madar as the global head of G10 FX trading and distribution and named James Hassett in the new role of global head of EM macro trading.

Argentina’s Exchange Set for Derivatives Launch – FOW/Global Investor Group

Argentina’s top exchange has said it will start derivatives trading on July 27, in what has been described as a key development for the country’s financial market. Bolsas y Mercados Argentinos (BYMA), Argentina’s national bourse, said late on Thursday it had been given the green light by regulators to launch its derivatives platform on Friday.

‘The Next Frontier for Us’: Inside State Street’s Multibillion-Dollar Bet on Financial Data – Business Insider (subscription)

Charles River will boost State Street’s efforts by filling in gaps in the firm’s front-office offerings, including portfolio construction, order management, and trading.

Market Savvy 

World’s Best-Performing Currency Gets Boost from Trade Optimism – Bloomberg

Optimism about Mexico reaching a Nafta trade deal with Donald Trump is making the peso the hottest currency in the world.

Manipulation on the Mind – FT Alphaville

Currency manipulation has been on the minds of many American officials since China’s currency plunged late last week. On Thursday, Treasury Secretary Steven Mnuchin told CNBC that he’s “closely monitoring” the renminbi’s weakness and making sure “people don’t use currency for unfair trade advantages.”

Japan Sticks With FX Chief Asakawa After Trump Tweets Currencies – Bloomberg

Japan opted to keep a steady and experienced hand in charge of the yen amid renewed concern that foreign exchange is in the ccrosshairs of the Trump administration. Masatsugu Asakawa will continue as Japan’s top currency official for a fourth straight year after a shuffling of top finance ministry officials by the Cabinet Office.