Top Headlines 

Pound Leaps to Highest Since Aftermath of Brexit Vote – Financial Times (subscription)

The pound leapt above the $1.36 mark to its highest level since the aftermath of the Brexit vote, as a speech from a Bank of England policymaker hardened perceptions that the central bank is moving to raise interest rates for the first time in a decade. 

Pound Surge Stokes Bullish Option Bets as BOE Rate Hike in Cards – Bloomberg

Sentiment turns bullish for first time since February 2014.

Dollar Brushes Off Latest North Korea Missile as Yen Dips – Reuters

The dollar rebounded against the yen in European trade as traders quickly brushed off the latest missile fired over Japan by North Korea, after an initial dip in risk appetite across currency markets.

Yen, Gold Firmer After North Korea Missile Launch – Financial Times (subscription)

Havens were gaining in the wake of North Korea’s latest missile launch, the second fired over Japan and into the Pacific Ocean.

Traders Are Getting Less Excited by North Korea’s Provocations – Bloomberg

Traders are getting less excited by North Korean provocations, judging by the diminished reactions in financial markets to the dictatorship’s weapons tests.

In Cryptocurrencies, Tech and Speculation Meet – Financial Times (subscription)

Regulators are getting to grips with digital currency and not too soon. 

MiFID II: Proving Best Execution Is Data Challenge – FinOps Report

With the arrival of MiFID II, trade execution will no longer be solely the concern of the trading desk.

Black Wednesday: 25 Years on from the Day the Pound Made Headlines for All the Wrong Reasons – City AM

Whereas nobody knows yet where exactly the Brexit vote will take us, 25 years on it’s clear the effects of “Black Wednesday”, when the UK crashed out of the European exchange rate mechanism (ERM), have had a profound effect on the British economy.

Regulatory News

New Hedging Rules Will Make Forex Traders Put Up or Shut Up: Every Day – Reuters

New European Union regulations on foreign exchange trading will make it harder and more expensive to manage currency risk, traders said, especially for large financial counterparties such as hedge funds and insurance companies.

CFTC Chief Asks Europe’s Policy Makers to Drop US Clearinghouses Plan – Wall Street Journal (subscription)

Christopher Giancarlo also said countries should defer to others’ rules when regulating international companies.

Industry Renews Push for TriBalance Clearing Exemption – Risk (subscription)

Dealers are using the review of the European Market Infrastructure Regulation (Emir) to renew a push to exempt non-cleared derivatives trades done via TriOptima’s optimisation service from mandatory clearing rules.

Wall Street’s Lunch Club Is Planning a Reboot in Trump’s DC – Bloomberg

Wall Street’s most elite trade association has hired a former Treasury Department official as it seeks to re-establish its lobbying heft in Washington.

Bitcoin Sinks as China Is Said to Order Exchange Halt This Month – Bloomberg

Bitcoin tumbled, heading for its worst week since January 2015, after people familiar with the matter said China aims to stop exchange trading of cryptocurrencies by the end of September.

Company News

CLS Volumes Flat in August – Profit & Loss

Average daily volume (ADV) submitted to CLS was $1.58 trillion in August, down 1% from July.

Beattie Joins XTX Board – Profit & Loss

Niki Beattie has joined the XTX Markets board as a non-executive director, effective 1st October.

Eurex Gets Rolling on New FX Product – Global Capital (subscription)

Eurex Exchange has announced that it will start trading 12 currency pairs as FX rolling spot futures from October 6.

LCH Offers Direct Repo Clearing for Buy-Side – The Trade

LCH has expanded its RepoClear service to allow buy-side participants to clear their trades directly, with Insight Investment signing up as the first asset manager member.

A Chicago Exchange Says Bitcoin Is Here to Stay, But It Will Provide a Way to Bet Against It – Quartz

The chief operating officer of CBOE Holdings, which owns Chicago Board Options Exchange, is diving into cryptoassets.

Market Savvy 

Most Asian Currencies Strengthen as Dollar Slides on North Korea Missile Launch – Reuters

Most emerging Asian currencies strengthened as the dollar lost ground against a basket of major currencies after North Korea fired another missile over Japan into the Pacific Ocean.

C$ Recovers to Trade Flat After Hitting One-Week Low – Reuters

The Canadian dollar traded little changed against its US counterpart after paring earlier losses, helped by oil price gains as investors sought clues on the relative likelihood of tighter monetary policy.

Bitcoin Steadies Following 16% Plunge – Financial Times (subscription)

Bitcoin was attempting a recovery after suffering its longest losing streak in a year as Chinese regulators cracked down on cryptocurrencies.