Top Headlines

Rage Within the Machine – Brexit Headline Blizzard Overloads FX Algos – Reuters

Machine-driven trading systems in the $5.1 trillion-a-day global currency market are struggling to cope with the blizzard of headlines about Britain’s efforts to extricate itself from the European Union, making it more expensive and risky to bet for or against sterling.

Putting Libor Out of its Misery is Proving Easier Said Than Done – Bloomberg

Weaning off the scandal-plagued Libor benchmark is a gigantic problem for global rates markets, one that increasingly looks too burdensome for a single replacement to handle in the US.

Have We Enough Compliance Now? (opinion) – Profit & Loss

We all know that compliance is an all-consuming beast that is eating up resources at a rate of knots – that is one of the consequences of a sustained period of uncertain morality in financial institutions – but should we be asking whether it is becoming too big?

AI: Market Trader and Market Cop – EE Times

A new report commissioned by the Alan Turing Institute details how AI is transforming the financial services industry, but warns that up-to-date regulation is needed to avoid misuse of the technology and mitigate the potential for unintended consequences.

Regulatory News

Citi Report Advocates New FXPB Pricing Model – Profit & Loss

Incoming regulations will increase the cost of FX prime brokerage services and all market participants – including executing brokers – will have to share these costs, says a new report from Citi.

EU Hones Plan for Long Brexit Delay – Bloomberg

The European Union increasingly sees a long Brexit delay as the most likely outcome of an emergency leaders’ summit next week, according to EU officials, even though it’s neither side’s preference.

New EU Rules Threaten to Lock Out US Prop Traders – (subscription)

Europe’s new Investment Firms Regulation (IFR) risks locking out US proprietary traders with no legal presence in the region, market participants and lawyers warn. This could drain liquidity from European futures exchanges, and there could also be costly implications for UK-based firms if Brexit sees the UK leave the single market.

Fraction of Buy-Side Firms Ready for Uncleared Margin Rules – The Trade

Only a fraction of buy-side firms are ready to comply with new collateral rules for uncleared derivatives, which will be extended to a wider range of firms from September, according to SimCorp research.

Esma Adds Concentration Risk to CCP Stress Test – FOW (subscription)

The third EU-wide central counterparty stress test will assess concentration risk, liquidity risk and credit risk

US Hails Progress in China Talks Amid Push to Close the Deal – Bloomberg

President Donald Trump’s top economic adviser touted progress in high-level talks with China, but cautioned that a final deal to end the trade war remains elusive as negotiations resumed in Washington.

Crypto News

Algo Hedge Funds Join Cast of Suspects Seen Behind Bitcoin Surge – Bloomberg

Add algorithmic hedge funds to the list of suspects behind Tuesday’s sudden surge in Bitcoin that had the true believers in the digital asset world heralding a renaissance in the most-popular cryptocurrency.

What the SEC’s Framework for Digital Assets Means for ICOs – Bloomberg TV

Stephen Palley, a partner at Anderson Kill, explains what the Securities and Exchange Commission’s framework for digital assets means for ICOs.

Crypto Exchange Binance is Setting Up Shop in Singapore This Month – CoinDesk

Cryptocurrency exchange Binance is launching a new fiat-to-crypto exchange in Singapore later this month.

Company News

European Investors Complain Over Soaring Cost of Data – Financial Times

Funds say exchanges are jacking up fees to offset weaker revenues from trading.

Euronext Aims to Build Asian FX Ecosystem – Markets Media

FastMatch, Euronext’s platform for spot foreign exchange trading, hopes to take advantage of being the first electronic communication network to launch in Singapore in the third quarter of this year.

CMC Posts Profit Warning; Foley Resigns – FX Week (subscription)

Online trading firm CMC Markets has warned its revenue has taken a hit from recent regulation, while chief operating and financial officer Grant Foley says he is stepping down from his roles.

After Cutting 802,000 Jobs, Some Big Banks Are Adding Staff – Bloomberg

Hundreds of thousands of jobs have disappeared on Wall Street since the 2008 financial crisis and some of the biggest banks haven’t stopped cutting. Still, some firms managed to reverse the trend and are slowly boosting staff levels.

Two Wall Street Giants Are Going to Be Linking Their Customers’ Data – The Wall Street Journal (subscription)

BNY Mellon, which keeps investment firms’ books, plans to deliver real-time information on trades, asset prices and cash positions to the 40-50 clients it shares with BlackRock’s Aladdin, a system money managers use to analyze their investment portfolios and manage their risks.

UniCredit Waits in Wings to Bid for Germany’s Commerzbank – Financial Times

UniCredit is preparing a rival multibillion-euro bid to take control of Commerzbank amid signs that plans to merge the German lender with Deutsche Bank are facing mounting difficulties.

Market Savvy

British Pound Firms After Lawmakers Vote to Block No-Deal Brexit – Bloomberg

Sterling firmed after UK lawmakers voted to block a so-called no-deal Brexit, although the currency held well within its trading range from the prior day.

Euro Stuck Near $1.12 After Weak German Data – Reuters

The euro remained stuck near a one-month low on Thursday as more signs of weakness in the German economy detracted from optimism about U.S.-China trade talks and a softer Brexit.

US-China Trade Optimism to Help Yuan Overcome Concerns Over Weakening Economy: Reuters Poll – Reuters

The Chinese yuan will hold on to its recent gains against the dollar, and likely make a modest push forward from current levels over the coming year, as optimism about a US-China trade deal offsets anxiety over weak domestic economic growth, a Reuters poll showed.