Top Headlines

Swaps Rules Aimed at Curbing Risk to Go Into Effect in US – Wall Street Journal (subscription)

The rules, which concern swaps that aren’t routed through clearinghouses, require written agreements detailing collateral arrangements.

Dollar: Picking Up Before Payrolls After Rare Six-Month Slump – Financial Times (subscription)

After six full months of consecutive declines – a rare rough patch – the US dollar is seeing a little support.

Euro Slips After Report ECB Officials are Concerned with Currency’s Rise – Financial Times (subscription)

The common currency fell about 0.5 per cent from Thursday’s highs above $1.19 after a report that a rising number European Central Bank officials are concerned about the euro’s sharp climb this year.

Data Props Up Sterling After Worst Month Since October – Reuters

Sterling steadied above $1.29, gaining back some initial losses in morning trade in London after the PMI index of sentiment among manufacturers came in well above forecasts.

Mark Johnson’s Trial to Start on September 25 – FX Week (subscription)

Jury selection to begin in alleged front-running case; judge postpones original date by a week at status conference hearing.

Mixed News on August FX Volumes – Profit & Loss

The first three platforms to report FX average daily volume (ADV) for August have presented a mixed picture, with one matching record highs, one dropping and one remaining stable.

FX Traders Going ‘Quantamental’ – Euromoney

A growing number of FX traders are extolling the virtues of combining quantitative and fundamental analyses into an approach known as quantamental.

August, a Month That Gave Markets a Shake – Wall Street Journal (subscription)

The Nasdaq gained, volatility re-emerged, Harvey hit a slumping energy sector and the euro rallied.

Regulatory News

MiFID II Swaps Transparency Limited – Markets Media

Four-fifths of euro swaps will not be subject to pre-trade transparency under new reporting requirements despite the European Union’s aim of improving price and volume data.

White House Set to Tap Columbia Law Professor for SEC on Friday – Wall Street Journal (subscription)

The White House is expected to nominate Columbia University law professor Robert Jackson to a vacant slot on the Securities and Exchange Commission, according to people familiar with the matter.

Citigroup’s Pekin Questions Leverage Ratio, Euro-Clearing – Global Investor (subscription)

Bank’s head of futures, prime and securities services said leverage ratio methodology was “excessive”.

Company News 

JP Morgan Clears First Trades with LCH ForexClear – The Trade

JP Morgan has cleared its first non-deliverable forward (NDF) trades with LCH ForexClear since the implementation of uncleared margin rules.

CME Europe Has Its Last Trading Day, Routes to US – FOW (subscription)

CME shut its London-based derivatives exchange, CME Europe, and clearing house, CME Clearing Europe. All positions that were still open on August 30 have now been closed and settled. 

PAG Signs for STP Framework – Profit & Loss

Derivitec and Messer Financial Software are collaborating to provide straight through risk processing for Asian asset management firm PAG.

Pan Joins EasyMarkets – Profit & Loss

CFD and FX broker EasyMarkets has announced the appointment of Jimmy Pan as head of sales, Asia Pacific.

Aldridge Joins SafeScribe – Profit & Loss

Steve Aldridge has joined SafeScribe as managing partner, sales and strategy.

Market Savvy

China’s Yuan Hits Fresh 14-Month High After Best Month – Reuters

China’s yuan strengthened to a fresh 14-month high against the US dollar after its best month on record, buoyed by strong guidance while the dollar remained under pressure.

Traders Are Girding for a Political Shake-Up in New Zealand – Bloomberg

New Zealand’s dollar spiked lower as an opinion poll put the country’s opposition Labour Party, under new leader Jacinda Ardern, in front of the ruling National Party for the first time ahead of the September 23 election.

SEB Criticises Riksbank Dovishness as Krona Hits Five-Month High – Financial Times (subscription)

Sweden’s krona touched a fresh five-month high as traders bet that the central bank will be unable to maintain its commitment to keeping record-low interest rates, with local bank SEB warning that the Riksbank’s current attitude “increases the risk of a new crisis”.