Wheatley to Stand Down as FCA Chief Executive

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Top Headlines

Wheatley to Stand Down as FCA Chief Executive – Profit & Loss (free story)
Martin Wheatley is to stand down as chief executive of the UK’s Financial Conduct Authority with effect from 12 September 2015.

American is Front-Runner to Head Panel of Global Markets Regulators – Wall Street Journal (subscription)
Paul Andrews, a vice president at the Washington-based Financial Industry Regulatory Authority (FINRA), is the front-runner to lead an international committee of markets regulators called the International Organization of Securities Commissions (Iosco), according to a person familiar with the matter.

Greece Debt Crisis: ECB Raises Funding for Greek Banks – BBC
The European Central Bank says it has increased emergency funding to Greek banks by €900 million (£627 million) for one week.

There’ve Been Some Big Moves in Currencies This Week – Bloomberg
Traders in the $5.3 trillion-a-day foreign exchange market are having a busy week as central bank decisions and falling commodity prices drag currencies to multiyear lows. Here’s a roundup of the latest moves.

Forex Trading Chiefs at Citibank, SocGen See Won Extending Drop –Bloomberg
The won will drop to levels last seen in 2012 this year as overseas investors pull money from South Korean assets, say foreign-exchange trading heads.

Bad News for Canada’s Currency is Good News for Many – Reuters
Canadians’ overseas spending power has taken a hit, but the plunge in the Canadian dollar after the central bank cut interest rates on Wednesday to try to revive a sputtering economy is being cheered by a wide array of businesses.

More FX Banks Increase Prime Brokerage Terms, Hurting Smaller Clients –Finance Magnates
As Citi increased its PB fees by as much as 25% after Black Thursday, now ABN Amro reportedly requires $5 million in minimum capital.

How Corporate Cards Mitigate FX Risk – Euromoney
While much has been said about the liquidity, treasury data and risk management benefits of commercial cards as a source of supply chain financing and cash management – as opposed to merely being used for expenses – the FX benefits should not be understated.

Regulatory News

CFTC Lawyer Disappointed in EU Stance on Equivalence – Risk.net(subscription)
The US Commodity Futures Trading Commission should have already secured a EU equivalence determination for US clearinghouses, CFTC lawyer Lawranne Stewart says.

European Asset Managers Weigh into CCP Debate – Profit & Loss (free story)
Eleven major European asset managers have set out a number of recommendations to enhance the systemic safety and soundness of central clearing in Europe in a letter to EU Commissioner Jonathan Hill.

Dealers Seek EMIR Exemption for Some Derivatives Contracts – Risk.net(subscription)
Dealers are calling for some equity-derivatives contracts to be exempt from margining requirements proposed in Europe. The concern is that the proposal, part of the European Market Infrastructure Regulation, could make offering some equity-finance transactions difficult by limiting collateral too tightly.

Warren Pushes US Regulators to Revisit Wall Street Swaps – Bloomberg
If Wall Street firms thought the backlash to its rollback of stricter derivatives rules had died down, Senator Elizabeth Warren and a colleague in the House have different plans.

Shrinking Ranks of Swaps Clearers Could See New Entrants – Risk.net(subscription)
NFA official says “a couple” of firms have filed applications to open a swaps FCM.

Company News

Citigroup Earnings Climb 18% in Quarter – NY Times
Citi said revenue from its equities group, as well as its fixed income, currencies and commodities trading business – once dependable profit centres – were largely flat from a year ago.

Goldman Profit Drops on Fixed Income, Surge in Legal Costs – Bloomberg
Fixed income, currency and commodity trading revenue was $1.45 billion, excluding accounting adjustments.

Market Savvy  

Dollar Heads for Biggest Weekly Gain Since May on US Rate View
Reuters
The dollar was on track for its biggest weekly gain in two months on Friday as investors bet on the chances of a US interest rate hike by the end of the year.

US Dollar, Equities Move In Same Direction
LMAX Exchange
Fading Grexit risk, solid US Q2 earnings and a Fed Chair signalling rate lift-off in 2015 have been the major drivers of markets this week. Global equities are finding comfort in the mitigated Greece risk and US earnings, while currencies are more focused on the Fed rate lift-off.

EURGBP’s Break Below 0.70 Can be Sustained
BNP Paribas
In a speech late Thursday, Bank of England Governor Carney indicated “the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year”, comments which have been interpreted in the press as suggesting rate hikes could come around that time. With rates markets only fully pricing tightening by Q2 of next year, the comments should keep the GBP under appreciation pressure.

Currency Sledging: Pound Trouncing Aussie Dollar
Financial Times
The England cricket team may have been having a little difficulty dislodging the Aussies in the second Ashes test at Lords, but England die-hards can console themselves with the fact it’s costing the Australian team and travelling fans a small fortune to be in the UK, thanks to the upbeat pound and the troubled Australian dollar.

Press Releases

Aite Report: Buy-Side Post-Trade Realities – Keeping Cool While Under Fire
A new Aite Group report assesses middle- and back-office priorities and challenges for asset managers and asset servicers across the globe, including tipping points for technology investment. At the forefront of the regulatory crackdown on nonbank financial institutions is the potential impact of a large asset manager’s failure in the financial markets. Buy-side-focused regulation may begin to rival that on the sell-side if nonbank reform continues to be drafted at this pace.

Industry Events