Top Headlines

Switzerland-EU Row Shows Equivalence Will Not Work for UK – GlobalCapital

The EU’s decision not to extend equivalence to Swiss exchanges and Switzerland’s subsequent retaliation is a perfect example of why the measure is an insufficient framework for future EU-UK financial services relations after Brexit.

London Bankers Brace for Summer Gloom with Mounting Job Cuts – Bloomberg (subscription)

Deutsche Bank, HSBC, Nomura and Stifel are executing redundancy plans while stressed staff contemplate quitting before the axe falls.

Lagarde to Succeed Draghi as ECB Chief as Economy Weakens – Bloomberg (subscription)

Christine Lagarde is set to swap the helm of the International Monetary Fund for that of the European Central Bank, becoming the first woman to run euro-area monetary policy just as the bloc’s economy looks in need of fresh stimulus. Lagarde was nominated to succeed Mario Draghi as president of the ECB when his eight-year term ends on Oct. 31.

Regulatory News

UK Regulator Proposes Ban on Crypto-Based Derivatives – Financial Times (subscription)

The UK financial watchdog has proposed a ban on the sale of crypto-based derivatives amid a resurgence in the price of bitcoin, the most high-profile cryptocurrency. Trading platforms would be banned from selling, marketing or distributing all derivatives linked to “unregulated transferable crypto-assets” such as bitcoin and ethereum to retail customers under the plans, which are still subject to consultation. Contracts for difference, options and futures would all be caught up in the regulations.

CFTC to Hold an Open Commission Meeting on July 11 – CFTC

The Commodity Futures Trading Commission will hold an open meeting on Thursday, July 11 at 10.00 am at its headquarters in Washington, D.C. to consider the supplemental proposal on exemption from derivatives clearing organization registration; the proposed rule on registration with alternative compliance for non-US derivatives clearing organizations; and the proposed rule on customer margin rules relating to security futures.

Crypto News

IMF: Some Central Banks ‘on the Verge’ of Piloting CBDCs – Central Banking (subscription)

The International Monetary Fund has found that around 20% of jurisdictions are “exploring the possibility” of issuing a central bank digital currency (CBDC), with some already beginning on a limited scale. 

BitMEX: A Bitcoin Journey from Bags of Cash to the Cheung Kong Center – Euromoney
Arthur Hayes felt the golden days of finance had gone by the time he got started in investment banking in Hong Kong – until cryptocurrency gave him the opportunity to establish platform BitMEX, now one of the most successful bitcoin exchanges in the world.

Congress Sends Cease and Desist Plea to Facebook over Crypto Plans – Finextra

Congressional lawmakers have called on Facebook to cease work on its proposed cryptocurrency, citing the social media giant’s recent travails over privacy issues as a glaring threat to the functioning of the world economy.

Company News

O’Flaherty Joins Westpac – Profit & Loss

Ian O’Flaherty has joined Westpac as head of digital solutions and client technology. Based in London, he will report to Sydney-based Giulio Katis, managing director and head of financial markets e-commerce.

Galinov Seeks to Lure Liquidity with Low Cost Trading – Profit & Loss

Dmitri Galinov, the founder and former CEO of FastMatch, is preparing to launch a new platform, called 24 Exchange, which he claims will offer market participants a more cost–effective way to trade with one another.

Deutsche Bank Looks to Shed Big Chunk of Wall Street Presence – The Wall Street Journal (subscription)

Deutsche Bank has had discussions with Citigroup., BNP Paribas and others that could lead to a sale or transfer of parts of its once-prized equities business, including operations that serve hedge funds and other big trading customers.

Market Savvy

Pound Falls Further, Pressured By Economic Woe, Rate Cut Expectations – Reuters

Sterling extended losses to hit a two-week low against the dollar on Wednesday, undermined by signals that the Bank of England might be preparing to join its central bank counterparts in cutting interest rates to shore up a worsening economic outlook.

Bond Yield Slump Hits Dollar, Pound; Swedish Crown the Exception – Reuters

The dollar slipped to a one-week low against the Japanese yen on Wednesday, undermined by the steady fall in US Treasury bond yields, fading optimism over the Sino-US trade deal and the possibility of fresh tariff hostilities with Europe.

Roubini Lives Up to ‘Dr. Doom’ Alias with Global Recession Call – Bloomberg (subscription)

The US-China trade war and a spike in oil prices from geopolitical tensions have the potential to push the world into recession next year, according to renowned doomsayer Nouriel Roubini.