Many derivatives end-users have issues with their clearing brokers that prevent or limit their access to central counterparties, a report by international standard-setters shows.
- Incentives to Centrally Clear OTC Derivatives – Financial Stability Board
- FSB and Standard-Setting Bodies Consult on Effects of Reforms on Incentives to Centrally Clear OTC Derivatives – Financial Stability Board
Dealers fear a move by the Chinese authorities to reinstate a deposit requirement on foreign currency derivatives could slow a recent pick-up in hedging from local corporates, despite warnings from regulators that firms need to do more to brace for future market volatility.
- China Tightens Controls to Slow Currency’s Fall – ABC News
- China Uses Lower-Profile Swaps Market to Bolster Yuan – The Wall Street Journal (subscription)
- China Is Asking Banks to Avoid Yuan Market ‘Herd Behaviour’ – Bloomberg
While women may be taking on prominent roles from Wall Street to the City of London, gender equality is still a long way off.
The transparency rules contained in Mifid II were meant to be a gift to investors. But, over seven months into this new information age, it is a gift that keeps on failing to give. The newly required trading data is hard to access and hard to use.
A research note by the Financial Conduct Authority has concluded that the phase-in of initial margin requirements for non-cleared derivatives trades will largely fail to make the process “gradual” and easier to stomach for UK counterparties.
The clearing fund needed “significant modifications”, according to OCC chairman and CEO Craig Donohue.
Eleven financial regulators are teaming up to explore the development of a global innovation sandbox following the success of the initiative in multiple countries.
Australia’s securities regulator will embed supervisors in the big-four banks in a push to get tough on corporate misbehaviour after a string of scandals.
The US Securities and Exchange Commission now has until Sept. 30 to “approve or disapprove, or institute proceedings to determine whether to disapprove” a proposed change from Cboe Global Markets that would allow the fund from VanEck Associates Corp. and SolidX Partners to list.
- Bitcoin Dealt a Blow after SEC Delays ETF Decision – Financial Times (subscription)
- For Wall Street, Bitcoin ETF Decision Could Answer ‘$1 Billion’ Question – CoinDesk
UK-based bank Barclays has denied it is working on opening a crypto trading desk. The statement was made after two employees removed LinkedIn evidence they were working on a digital assets project at the bank.
The safeguarding of cryptocurrencies by custodian banks is the only way institutional investors can begin their journey with the much-hyped digital assets. So will traditional custodians step up to the plate, and could they partner with crypto trading venues?
CLS Group’s FX volumes have confirmed the trend established by the major platforms that report data by revealing that it handled $1.64 trillion per day in July 2018, down 13.7% from the previous month but up 2.6% year-on-year.
Amid heightened US-China trade tensions, the market’s need to hedge exposure to RMB has grown. Trading volumes on SGX are surging, with a record $61.5 billion traded in July. So far in 2018, the total volume of SGX USD/CNH Futures cleared has crossed US$255 billion.
The investment will allow Libra to release new products and services which will support its fund administrator, trading operations and crypto exchange platform clients.
Sterling slid to a nine-month low against the euro on Wednesday as investors sold the currency fearing Britain could soon leave the European Union without securing a trade deal.
The euro rose above $1.16 on Wednesday as the dollar’s recent rally ran out of steam, and traders said solid data out of China had calmed investor nerves about recent Sino-US trade tensions, hurting demand for the dollar.
Turkey’s lira weakened against the dollar on Wednesday, hit by concern about President Tayyip Erdogan’s grip on monetary policy and reports that efforts to resolve a diplomatic row had yet to make tangible progress.
The dramatic decline in China’s currency is about to decelerate, according to the respondents in a Bloomberg survey. Only one of 20 traders and analysts surveyed said the yuan will fall below 7 per dollar in the next three months, a milestone level that was last crossed more than a decade ago.