The FX Market’s New Benchmark – $6.6 Trillion – Profit & Loss

The number used globally to measure the size of the FX market will be set at $6.6 trillion per day after the Bank for International Settlements released the results of its Triennial Survey for Foreign Exchange Turnover.

Supreme Court Hears Cases that Johnson’s Parliament Suspension was Illegal – Reuters

Prime Minister Boris Johnson’s government will try to persuade Britain’s top court this week that his decision to suspend parliament until shortly before the date for Brexit was not illegal as Scottish judges concluded last week.

Divided Fed Set to Cut Interest Rates This Week, But Then What? – Reuters

Deep disagreements within the Federal Reserve over the economic outlook and how the US central bank should respond will not stop policymakers from cutting interest rates at a two-day meeting that begins on Tuesday.

ECB Prepared to Cut Rates Again, Says its Chief Economist – Financial Times

The European Central Bank’s chief economist Philip Lane has defended the monetary stimulus package the central bank launched last week, stressing that it stood ready to cut interest rates even further into negative territory if needed.

Trade Talks Seen as Unlikely to Mend US-China Divide – Reuters

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world’s largest economies carve out is expected to be a superficial fix.

Oil Declines as Market Assesses Attacks on Saudi Facilities – Reuters

Oil dropped on Tuesday although the market remains on tenterhooks over the threat of a military response to attacks on Saudi Arabian crude oil facilities that cut the kingdom’s output in half and sent prices soaring by the most in decades.

China Stocks Fall, Yuan Weakens as Central Bank Holds Loan Rate – Bloomberg

China’s restrained approach to easing spooked financial markets Tuesday, with stocks and the yuan dropping the most in weeks.

Investors Pull Gold from Hong Kong as Tensions Rise – Financial Times

Private investors have begun to shift their holdings of gold from Hong Kong, months into the financial centre’s worst political crisis since the handover from British to Chinese sovereignty in 1997.

Regulatory News

US Charges Former JPM Traders with Spoofing – Profit & Loss

The US Department of Justice and Commodity Futures Trading Commission have charged five traders with spoofing and market manipulation offences in precious metals.

Wall Street May Get $40 Billion Reprieve from Trump Regulators – Bloomberg

Wall Street could soon get one of its most consequential wins of the Trump era as regulators are considering ripping up a rule that’s forced banks to set aside billions of dollars for swaps trades, according to people familiar with the matter.

Swiss Libor-Rigging Plaintiffs ‘Do Not Exist,’ Judge Finds – Law360

Several big banks and brokerages escaped a rate-rigging suit Monday after a New York federal judge determined that the investment firm that sued them in 2015 had dissolved before it brought claims, invalidating the entire litigation.

CFTC Revises Volcker Rule – Markets Media

Chairing his first open meeting of the US Commodity Futures Trading Commission, Chairman Heath Tarbert announced that the regulator had already amended the Volcker Rule to lessen its burden on smaller regional banks as well as to benefit the end-users of derivatives.

Crypto News

Facebook Says Central Banks Have Nothing to Fear from Libra – Bloomberg

Facebook is once again defending Libra – this time against fears that the envisioned cryptocurrency could replace sovereign currencies from the US dollar to the Euro and threaten central banks’ control over money creation.

Thai Crypto Scene Still Reeling from Top Exchange Bailout – NewsBTC

Thailand’s vibrant digital asset scene was shaken earlier this month when its most popular exchange unexpectedly announced an imminent closure. The news left crypto traders dazed and confused and fearing a wider crackdown from the military dominated government.

Cryptocurrency Dash to Begin Trading on Coinbase Pro – Coin Desk

Cryptocurrency exchange Coinbase announced its listing of cryptocurrency dash following an exploration period with the exchange that ended last week. 

Bitcoin Volatility Drops to Lowest Since May – Forbes

Bitcoin has been trading within a reasonably tight range, its volatility reaching the lowest point in more than four months.

Company News

Citi Restructures FX Business – Profit & Loss

Citi has announced a new management structure to best align its foreign exchange trading and institutional sales business under the Rates and Currencies umbrella. 

BidFX Taps Chan to Lead APAC Business – Profit & Loss

BidFX has appointed Wai Kin Chan as the company’s new head of APAC.

ECB Has $51 Billion Fund Questioning Future of Inflation Hedging –Bloomberg

The European Central Bank’s latest round of easing sent a signal to institutional investors that their inflation hedges may be growing more pointless by the day.

Fraser Handed COO Role at Lumint – Profit & Loss

Lisa Fraser has been appointed as the new COO of Lumint, a firm which manages passive commodity hedging and passive currency overlay programs for institutional investors and provides a technology service platform for the management of hedging mandates.

Market Savvy

China is Pitting the Yuan Against the Dollar. So Far, It’s Not Going to Plan – Wall Street Journal

The yuan is languishing in currency-trading rankings, highlighting international scepticism about Beijing’s tight control over the renminbi.

Norway Embraces Weak Krone as PM Points to Competition Boost – Bloomberg

The prime minister of Norway has signaled that her government is happy having a weak currency, which she says is supporting the country’s export industry.

Humility and Ambition are Needed to Shake Markets Out of Their Funk – Financial Times

Market pessimism is here to stay. Whether over global economic health or the power of central banks to improve it, the gloom is understandable.

SNB to Keep Its Powder Dry and Brace for Brexit – Bloomberg

Swiss National Bank chief Thomas Jordan is out of the hot seat for now – perhaps until Brexit hits.