Top Headlines

Primary Venues See Volume Increase from May – Profit & Loss

Three primary FX trading venues saw increased month-on-month activity in June 2019, but as was the case with other platforms that reported earlier this month, they were all down year-on-year with the exception of Refinitiv’s non-spot FX products.

PoP Debate Rekindled Following Stater Global Markets Exit – FX Week (subscription)

The decision by Stater Global Markets to close shop last month has rekindled the debate on the merits of the various prime-of-prime models active in the space and what it takes to survive in this world.

Deutsche Bank Ax Swings from Sydney to London to New York – Bloomberg (subscription)

In London, Deutsche Bank’s equities traders started bracing for the inevitable on Sunday night, shortly after the news broke that their business was being closed.

FX Markets Shrug Off Tough Talk on Brexit from Boris Johnson – Financial Times (subscription)

Boris Johnson’s “do or die” Brexit moment may be fast approaching, but investors in currency markets seem reluctant to take the Conservative politician at his word that the UK will leave the EU in October – with or without a deal.

Wall Street Weighs Wild-Card Risk of US Move to Weaken Dollar – Bloomberg (subscription)

A growing chorus of Wall Street foreign exchange analysts is writing about the risk that US President Donald Trump may move beyond words in his quest for a weaker dollar.

Regulatory News

Quintenz: CFTC Staff De Minimis Report Highlights Need for Change in Regulation – Profit & Loss

A staff report issued by the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight has been seized upon by CFTC commission Brian Quintenz to support his argument that the use of notional amounts for the $8 billion de minimis threshold for firms to be considered swap dealers is misguided.

Industry Calls Out Post-Brexit Position Limit Burdens – FOW (subscription)

Trade bodies highlight concerns about whether the Mifid II regime is still fit for purpose after Brexit.

Are Swiss Brokers Benefitting from ESMA’s Measures? – Finance Magnates

Following ESMA’s product measures, retail traders are looking offshore. Is Switzerland benefitting from this migration?

The Short Road from Libor’s Death to `Armageddon’ – Bloomberg (subscription)

Precious few market participants have grasped the urgency of replacing Libor. A sea of lawsuits may ensue.

Crypto News

Cryptocurrency Startups Get Partial Green Light from Washington – The Wall Street Journal (subscription)

Washington is opening the door a crack for cryptocurrency startups that want to disrupt some of Wall Street’s traditional businesses. The Securities and Exchange Commission said Monday that firms hoping to adapt bitcoin’s technology to uses such as raising capital for private companies could satisfy regulators’ concerns. That means a limited number of crypto firms could be approved as digital-asset brokers in the near future.

High-Frequency Trading Is Newest Battleground in Crypto Exchange Race – CoinDesk

A handful of cryptocurrency exchanges are rolling out the red carpet for high-frequency traders. Huobi, based in Singapore, and ErisX, in Chicago, have separately begun offering colocation, which allows these investors to execute trades up to a hundred times faster, giving them an edge over the rest of the market.

Fidelity International Begins Exploring Blockchain – Financial News (subscription)

Fidelity International is exploring the use of blockchain technology, stoking expectations that the fund management company is mulling a foray into the cryptocurrency market.

New Research Shows Why the Bitcoin Price May Skyrocket Later This Year – Forbes

A new research note from crypto prime dealer SFOX indicates there may be a correlation between the bitcoin price and holidays, at least during pronounced bull runs.

Company News

US Banks Rush in as Deutsche and its Rivals Cede Their Home Turf – Financial News (subscription)

The decline of Deutsche Bank and other former European financial powerhouses has left a gaping hole in European banking. US banks are filling the void, strengthening their stranglehold on the region.

Millward Joins Galinov’s New Startup, 24 Exchange – FX Week (subscription)

Paul Millward has joined FastMatch founder Dmitri Galinov’s new venue, 24 Exchange, a Bermuda-based FX derivatives exchange.

Mathew to Head FX Trading at Flow Traders – Profit & Loss

Flow Traders has hired Joshua Mathew as head of FX trading. Mathew is due to start in the last week of September and will be based in Amsterdam. He joins the Dutch electronic trading firm after 10 years at Barclays in London.

Profile: Stuart Williams, ICE Futures Europe – Best Execution

Stuart Williams, president of ICE Futures Europe explains how ICE is navigating the twists and turns of the markets.

TriOptima in Record Compression Run on Eurex – Profit & Loss

CME Group’s TriOptima has reduced notional outstanding at Eurex Clearing by 26% following a record compression run on June 26, 2019.

Market Savvy

Sterling Sinks to Levels Last Regularly Traded in Mid-2017 – Financial Times (subscription)

Britain’s currency fell on Tuesday to levels last regularly traded more than two years ago amid persistent uncertainty over Brexit and deepening economic concerns.

Currency Volatility Stays in the Doldrums after US Jobs Data – Bloomberg (subscription)

Currencies were trapped in an anaemic range just a day after stronger-than-forecast US jobs data roiled stocks and bonds. A gauge of implied price swings in the euro against the dollar held near its lowest in more than a decade even as traders were conflicted on whether to price in more than a 25-basis point rate cut by the Federal Reserve when it meets later this month.

Turkey’s Latest Stumble Shows Dangers of Betting on Risky Markets – Financial Times (subscription)

The hunt for yield is on, with gusto, and Turkey’s latest stumble underlines the risks that entails. Investors have shifted in recent weeks towards riskier corners of the market in a bid to juice up returns while the yields on highly rated debt collapse, often into negative territory.