Top Headlines

US Justice Department Brings Charges Against Two FX Traders – Profit & Loss

Mark Johnson, the head of global FX cash trading at HSBC and Stuart Scott, former head of FX cash trading for EMEA at HSBC, have been officially charged by the US Justice Department with conspiring to defraud HSBC clients by front running orders.

Euro Traders Tell Draghi That ECB’s Policy Is Going Nowhere Fast – Bloomberg

Euro traders are sending Mario Draghi a clear message: Monetary policy is reaching a dead end.

No reason for a yuan devaluation, China’s vice finance minister says – CNBC

China has no reason to devalue the yuan, as economic fundamentals remained strong, with growth at 6.7 percent in the first half, the country’s Vice Finance Minister Zhu Guangyao told CNBC.

RMB Sixth Most Popular Payments Currency in June, Down YoY – Profit & Loss

The Chinese Renminbi has seen a slight slowdown in terms of global payments by value in June, being surpassed by the Canadian dollar and standing as the sixth most popular currency, according to Swift.

Hedge Funds Face More Scrutiny as They Expand FX Market Making – Bloomberg

Be careful what you wish for — that’s the advice from State Street Corp. to the newest market makers in the $5.3-trillion-a-day foreign-exchange market.

Global stocks slip from highs; focus on G20, PMIs – Reuters

Shares fell on Friday after soft U.S. corporate results pulled Wall Street back from record highs, and as a string of data gave investors one of the first glimpses of the impact on global economic activity of Britain’s vote to leave the EU.

Hammond says Britain to reset fiscal policy in strongest hint to change – Reuters

Britain could reset fiscal policy if necessary in the wake of the Brexit vote, finance minister Philip Hammond said on Friday in his strongest comments to date on how policy may change after Britain’s historic decision to leave the European Union.

Hollande Tells May to Choose EU Market or Migrant Curbs for U.K. – Bloomberg

French President Francois Hollande told U.K. Prime Minister Theresa May that Britain faces a choice: Accept unlimited immigration from the European Union or lose access to its single market.

Trump Blasts China for Trade, Currency Actions – ABC News

Donald Trump accused China of stealing copyrights and unfairly manipulating its currency as he accepted the Republican Party’s presidential nomination, charges likely to fuel anger in a country already upset at criticisms of Beijing in the party’s new policy platform.

Regulatory News

CFTC Issues CCP Recovery, Wind-Down Guidance – Profit & Loss

The US Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) has issued guidance to clearinghouses to further the development of recovery plans and wind-down Plans.

Sell Side Trade Execution Businesses Pressurised by MIFID II Compliance Costs – FTSE Global Markets

MiFID II’s trade and transaction reporting rules require banks to generate, store and report to the European Securities and Markets Authority vast amounts of new pricing and execution data related to every single equities and equity-like instruments, bonds or exchange-based or OTC derivatives trade that they carry out for their asset management and institutional investor clients, including trades executed by banks against their own balance sheets.

Company News

Coinbase Offers Digital Currency to Consumers – Reuters

Bitcoin exchange Coinbase said on Thursday it is now offering the ether digital currency to consumers.

SABMiller Board to Take Into Account Currency Moves After Brexit Vote – Chairman – Reuters

SABMiller chairman Jan du Plessis, asked on currency moves since Britain’s vote for Brexit, says it’s one of many things people are taking into consideration, lots of facts and risks to consider, when board meet we will take into consideration all the facts.

AngloGold Sees Profit Return on Higher Bullion, Weak Currencies – Bloomberg

AngloGold Ashanti Ltd. said it returned to profit in the first half as the world’s third-biggest producer of the metal benefited from higher bullion prices and weaker currencies in the countries it operates in.

Small British Companies Are Less Wary of an Exit From EU – WSJ (subscription)

Tony Bastock, co-owner of the 100-employee Contract Chemicals Ltd. in Prescot, England, expects to spend more than $500,000 over the next few years complying with European Union regulations, and says that outside the bloc, the U.K. could develop “more sensible” rules.

 Virtusa Says Co Purchased Multiple Foreign Currency Forward Contracts – SEC Filing – Reuters

Says on July 18, co purchased multiple foreign currency forward contracts designed to hedge fluctuation in Indian rupee against U.K. pound sterling

Market Savvy

Ruble Drops Most in Week Since May After Putin Warns on Currency – Bloomberg

The ruble headed for its biggest weekly decline in two months after Russian President Vladimir Putin drew attention to the currency’s strength, prompting speculation the central bank or finance ministry will seek to influence the exchange rate.

Carry Trade Wins Again in Currencies Amid Post-Brexit Stability – Bloomberg

A bit of calm and prospects for more stimulus from some of the world’s largest central banks are creating a window of opportunity for one of the most popular trading strategies in the $5.3 trillion-a-day foreign-exchange market.

Sterling Drops, Gilts Rise After PMIs Point to Contraction – Reuters

Sterling dived and gilts rose on Friday after surveys showed business activity had wilted in the wake of the Brexit vote, bolstering expectations the Bank of England will have to do more next month to stimulate growth.

Stocks Retreat With Commodities as Japan Stimulus Optimism Fades – Bloomberg

Global stocks extended Thursday’s retreat from an eight-month high and commodities declined amid signs central bankers in Japan are becoming wary of expanding record stimulus. Malaysia’s ringgit dropped to this month’s low, while the yuan strengthened.

Industry Events

Profit & Loss Scandinavia, 13 September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL