TPound Rallies, Stocks Slip on Supreme Court Ruling – Reuters
Sterling extended gains on Tuesday while eurozone stocks tumbled after Britain’s Supreme Court ruled that British Prime Minister Boris Johnson had acted unlawfully when he advised Queen Elizabeth to suspend Parliament this month.
Eurozone Fiscal Rules ‘Should Be Revisited’: ECB’s Draghi – International Business Times
European Central Bank chief Mario Draghi said Monday that eurozone fiscal rules “should be revisited” to allow countries more flexibility to spend where needed to boost growth and fight downturns.
FX Global Code of Conduct Still Missing Buy-Side Buy-In – The Trade
Take-up of the Global Code of Conduct for the foreign exchange (FX) markets is still lacking among the buy-side community.
LCH Claims First with Link to FX Connect TradeNexus – Profit & Loss
The new link provides users of FX Connect TradeNexus with access to LCH’s ForexClear clearing service. AllianceBernstein, Brandywine Global Investment Management, Standard Chartered Bank and State Street are among the first firms to collaborate on the service, which is initially available for G10 and NDF markets.
Global Recession Fears Grow Among Asset Managers – Financial Times
Investors are increasingly fearful of a global recession, according to a survey of many of the world’s biggest asset managers.
Fed Adds $49.7 Billion to Financial System – Wall Street Journal (subscription)
The Federal Reserve Bank of New York added $49.7 billion to the financial system Monday, using the market for overnight repurchase agreements, or repo, to relieve funding pressure in money markets.
Regulatory News
HSBC Wins Appeal of EU Fine but Antitrust Breach Confirmed – Politico (subscription)
HSBC won dismissal of a €33 million fine in EU court today over its role in rigging interest rate indexes. The European Commission had “insufficient reasoning” for arriving at the eight-figure number, the EU’s second-highest court said in a statement.
NY Fed President Williams Urges Shift Away from Libor – Financial Times (subscription)
New York Federal Reserve President John Williams warned financial firms against “sticking their metaphorical heads in the sand”, as a deadline to replace the scandal-tainted Libor benchmark approaches.
Biggest Banks Are Less Likely to Wreck the Economy Than a Decade Ago – Bloomberg
After a decade of being regulators’ favorite target, the world’s biggest banks now pose less of a risk to the economy than before the financial crisis, according to the Bank for International Settlements.
Non-Banks’ Role in Cross-Border Funding Grows – Risk
Banks have rapidly expanded the share of their cross-border funding acquired from non-bank financial institutions (NBFIs) over the last six years, data from the Bank for International Settlements (BIS) shows.
Crypto News
Blockchain: Disillusionment Descends on Financial Services – Financial Times (subscription)
The financial services sector has ploughed huge amounts of money into blockchain, totalling some $1.7bn a year, according to research firm Greenwich Associates. And yet, so far, beyond the wild and volatile world of cryptocurrencies, blockchain has had little to no discernible impact.
Former Goldman Sachs Director to Advise Crypto Lending Exchange – Financial News (subscription)
An exchange set up to allow institutional investors to lend and borrow cryptocurrencies has hired John Macpherson, a former managing director at the investment bank Goldman Sachs, as a strategic adviser.
Bakkt Trades 71 Bitcoin Futures Contracts in First 24 Hours – CoinTelegraph
The lukewarm reception to the Bakkt launch is likely due to the fact that the currency’s price has been range-bound recently, so institutional traders are in no hurry to initiate positions.
Barclays’s Digital Bank Bet in U.S. Fades Under Cost Pressures – Financial Times
Jes Staley is turning away from his ambition to build a Barclays Plc-branded digital consumer bank in the U.S.
Company News
FX: A Relationship Business – Profit & Loss
Mike Harris, President of Campbell & Company, talks about the changing dynamics of trading relationships over the past 20 years and why he’s still bullish on FX as an asset class.
Singapore’s e-FX Strategy Blossoms as Apac Competition Heats Up – FX Week (subscription)
Euronext FX launches matching and pricing engine today, while JP Morgan is latest to announce plans in the city-state.
The 20 for 20 Countdown – Part Four – Profit & Loss
It’s been a busy 20 years since Profit & Loss launched. Colin Lambert and Galen Stops have picked out 20 key events or trends during that time and asked senior industry figures for their perspective on them.
Tradepoint Onboards 10 Streaming NDF Providers for Broken Dates – FX Week (subscription)
Tradepoint Systems has completed the onboarding of 10 liquidity providers streaming executable non-deliverable forwards (NDFs) across all pairs, regardless of the underlying tenor, including those with non-standard maturities.
Ice, CME Shore Up Clearing House Recovery Planning – Risk.net (subscription)
Ice and CME Group have moved to shore up their default management rules to enshrine new tools in their rule books that will help ensure the smooth recovery or wind-up of their clearing houses in the event of a catastrophic default.
Market Savvy
Trade Hopes Lift Developing World Assets, Turkey’s Lira Outperforms – Reuters
Emerging market assets edged higher on Tuesday, buoyed by optimism over planned U.S.-China trade talks, but underlying worries about global growth following weak business readings from major economies kept investors from making big bets.
Fed’s Effort to Increase Reserves Could Drag on Dollar – Financial Times (subscription)
The dollar’s value tends to track closely the amount of excess reserves in the system. The more excess reserves available, the higher the supply of dollars – and the lower the valuation of the greenback.