Top Headlines
State Street’s GlobalLink Joins FXPA – FXPA
The Foreign Exchange Professionals Association is pleased to announce the addition of GlobalLink, State Street’s suite of e-trading platforms, technology, data and workflow solutions.
In the FICC of It (podcast) – Profit & Loss
Under discussion in this week’s extended podcast is Citi giving notice to four of the biggest non-bank market makers in FX and the potential implications for the industry as a whole, Citi’s realignment of FX and Rates, and the unveiling of Facebook’s proposed cryptocurrency, Libra,
Lira Rallies Most in World as Istanbul Vote Result Stuns Traders – Bloomberg (subscription)
The lira jumped and stocks rose after the Turkish opposition candidate secured a landslide victory in a rerun of mayoral elections in Istanbul, putting an end to months of uncertainty that had weighed on the currency.
Regulatory News
US Markets Regulators Reach Deal on Dodd-Frank Swaps Capital Rules – Reuters
US markets regulators on Friday unveiled an agreement on how much capital and margin firms must hold when trading swaps based on securities, finalizing a key piece of the 2010 Dodd-Frank law introduced following the 2007-09 financial crisis.
Big Tech’s Data Dominance Is Mounting Worry for Central Bankers – Bloomberg (subscription)
As Facebook, Alibaba Group and big technology firms march deeper into the financial system, the world’s top central bankers say new restrictions may be needed to ensure they compete fairly with traditional lenders.
A Conversation with CFTC Regulator Christopher Giancarlo (podcast) – Roll Call
Commodity Futures Trading Commission Chairman Christopher Giancarlo talks about financial technology innovation, breaking down barriers and what keeps him up at night.
Privacy Laws Crimp Bank Efforts to Snoop on Traders – Risk.net (subscription)
Never before have computers been so adept at watching the people who use them. And at banks, privacy restrictions may well stop some of that. Data protection laws, such as the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act, are imposing new boundaries on the ways in which employee and customer data can be used.
Crypto News
Bitcoin Breaks $11,000 for First Time Since 2018 – Financial Times (subscription)
Bitcoin edged lower on Monday after rallying above $11,000 over the weekend to hit a 15-month high.
The court-appointed monitor for bankrupt QuadrigaCX said the Canadian cryptocurrency exchange’s late founder took most of the money entrusted to him by clients and spent much of it on himself and his wife.
London Stock Exchange Provides Tools to Another Crypto Exchange – FX Week (subscription)
As cryptocurrencies vie to emerge as asset classes in capital markets, startup crypto markets are struggling to build out the necessary infrastructure and trading technology to attract institutional investors on their own – but the London Stock Exchange stands poised to step in and provide those tools.
All Global Crypto Exchanges Must Now Share Customer Data, FATF Rules – CoinDesk
The Financial Action Task Force (FATF) standards released Friday include a requirement that “virtual asset service providers”, including crypto exchanges, pass information about their customers to one another when transferring funds between firms.
Mnuchin Says Guidelines Move Crypto Firms From ‘Dark Shadows’ – Bloomberg (subscription)
Treasury Secretary Steven Mnuchin voiced his support for new global regulatory standards to combat illicit financing by criminals, terrorists and rogue nations that will have major implications in the world of cryptocurrencies.
Company News
Analysing the Implications of Citi’s FXPB Cull – Profit & Loss
The news this week that Citi served a 90-day notice to the largest non-bank market making firms in FX – including Jump Trading, XTX Markets, Virtu Financial, HC Technologies and, at an earlier point in time, GTS – that it is no longer willing to offer them FX prime brokerage services, certainly got tongues wagging.
UBS Unleashes Orca for Rates Clients – Risk.net (subscription)
UBS made its optimal routing control algorithm, dubbed Orca for short, available to clients in the $500 billion a-day US Treasury market in the third quarter of 2018.
Tradition Preps New Data Platform – FX Week (subscription)
Targeting further growth from data sales, the broker is launching a product to enhance its FX cash and derivatives coverage.
Sears Exits Barclays – Profit & Loss
Rick Sears, who served as COO of the macro group at Barclays in New York for the past nine years, left the bank at the beginning of June.
OneZero Announces Liquidity Hub Update – Profit & Loss
OneZero Financial Systems has released a new 8.0 version of its Liquidity Hub, which features a new design aimed at giving clients additional tools and flexibility to simplify their daily workflow.
CME Group and Shanghai Gold Exchange to Launch New Gold Futures Contracts – CME Group
The Shanghai Gold Exchange, the physical gold exchange, will grant CME Group a license to use, create and list futures contracts based on SGE’s Shanghai Gold Benchmark PM Price.
Market Savvy
Sterling Pulls Back from One-Month High vs Dollar – Reuters
Sterling pulled back from a one-month high on Monday hit largely on the back of a selloff in the dollar, with traders reluctant to take big positions on the pound until the conclusion of the Conservative Party leadership contest.
Dollar Slips after Biggest Weekly Drop in Four Months on Dovish Fed – Reuters
The dollar fell against its rivals on Monday after sustaining its biggest weekly drop in four months last week as the US central bank opened the doors for a likely rate cut as early as next month.
An Anomaly in Rupee Forwards Has Traders Search for RBI Hand – Bloomberg (subscription)
An anomaly in India’s currency forwards market is piquing the curiosity of traders. The 12-month implied yields on rupee forwards, which reflect interest-rate differentials between India and the US surged to near a two-year high this month even after the Reserve Bank of India cut interest rates for a third time this year.