Tsipras Heads to Brussels With Greek Future in Euro at Stake

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Top Headlines

Tsipras Heads to Brussels With Greek Future in Euro at Stake – Bloomberg
Greek Prime Minister Alexis Tsipras heads to Brussels in a last-ditch attempt to secure a rescue from European leaders and keep his country in the euro region.

Central Banks Across the World Pressured to Fight Against Euro Depreciation – Bloomberg
Greece’s debt turmoil has found a favourite conduit for spreading contagion: the $5.3 trillion-a-day foreign-exchange market. From Sweden to Switzerland, central banks are battling to contain an appreciation of their currencies versus the euro. Greek risks are also infiltrating markets in Eastern Europe after Greece’s decisive vote against austerity this week.

Currency Skirmishes Become Pitched Battles – Financial Times (subscription)
The Riksbank’s decision last week to cut its policy interest rate by 10 basis points to minus 0.35% was widely seen as the latest skirmish in renewed currency warfare. Memories of the competitive devaluations of the 1930s are being stirred, while the threat of protectionism is becoming more real.

Greek Finance Minister Resigns; Euro Holds Strong – Profit & Loss (free story)
The euro finished only marginally down against the US dollar after the first day of trading following Greece’s historic referendum decision to reject Eurozone bailout terms and the resignation of its finance minister.

Markets Prepare for New Greek Currency as Grexit Prospect Grows – Financial Times (subscription)
For months “Grexit” has been a regular topic for speculation among foreign currency specialists. But the working assumption has been that all parties in Greece’s drawn-out saga would find a way of resolving their differences and keep the country in the Eurozone.

All Volatility and No Trend Makes FX Funds a Dull Play – Reuters
Howls of anguish from currency fund managers about a lack of volatility have given way to complaints that, while big price swings in exchange rates are back, a directionless market means it is no easier to make money.

Banks Devise Nifty Little Uses for Their Big Brother Systems – Financial News(subscription)
Putting surveillance systems on trading floors to curb market abuse after the financial crisis may have been a necessity, but as institutions sweated to get it done on time, some may have harboured uncharitable thoughts towards the regulators that had imposed demanding deadlines. Perhaps, they are more grateful now.

Regulatory News

FCA Unveils Final Rules to Hold Bankers to Account – Profit & Loss (free story)
UK watchdog, the Financial Conduct Authority (FCA), has today published the final rules of its new personal liability regime that will see senior bankers held to account if misconduct happens on their watch.

Big US Banks Refile ‘Living Wills’ After Regulatory Rebuke – Wall Street Journal (subscription)
Twelve of the largest US banks are trying yet again to persuade regulators they can safely navigate bankruptcy without tanking the broader financial system.

Russian, Chinese Finance Ministries to Sign Memorandum on National Currency Settlements – TASS
Russia’s and China’s finance ministries and central banks plan to sign a financial cooperation memorandum to stimulate settlements in national currencies, Russian Finance Minister Anton Siluanov said on Monday.

Company News

GMEX Constant Maturity IRS Contracts Ready for Launch – Profit & Loss (free story)
From 7 August 2015, GMEX will provide a euro-denominated IRS Constant Maturity Future (CMF) for trading and clearing on Eurex.

Insch Launches Actively Managed Gold/Currency Strategy – Institutional Asset Manager
Insch Capital Management, the investment adviser to the Insch Insight funds, has launched Kintore – an actively managed gold/currency investment strategy.

Feig Leaves Fortress – Profit & Loss (free story)
Jeff Feig has left Fortress Investment Group, less than a year after joining the firm from Citi.

ICE Reports June 2015 Volumes, FX Contracts Undergo Relentless Growth –Finance Magnates
ICE released its June 2015 volumes, which once again underscored an outperformance of FX contracts.

Market Savvy  

Video: How Are Currency Traders Pricing in Greece?
Bloomberg
UniCredit Head of Global FX Strategy Vasileios Gkionakis discusses the Greek crisis and the euro and dollar.

Euro Down 0.8%; Commodity Currencies at Multi-Year Lows
Reuters
The euro fell nearly 1 percent against a buoyant dollar on Tuesday, as German 10-year Bund yields edged lower and interest rate differentials moved against the common currency.

Mexico’s Peso is Stung by Bets on US Rates
Wall Street Journal 
Mexico’s currency fell to a record against the dollar Monday, illustrating the downside of popular emerging-market trades at a time of anxiety about higher interest rates in the US.

Will Hope Spring From Eurogroup Meeting?
LMAX Exchange
The market has done a great job avoiding panic in the early week, despite all the uncertainty surrounding Greece’s fate. It seems investors have found a way to play down the threat of systemic risk, while looking for signs of progress out of the Eurogroup meeting later today.

Press Releases

Bank of Russia, State Bank of Vietnam Discuss Settlements in National Currencies
The Bank of Russia and the State Bank of Vietnam have conducted consultations on organising mutual settlements in national currencies. The participants considered preliminary plans to launch trades in the RUB/VND currency pair at the Moscow Exchange.

Industry Events