Top Headlines

Where Now for the Rules that Rocked European Finance? – Financial Times (subscription)

Helping small and medium companies access capital markets was at the heart of Mifid II but more than 16 months on, bankers and regulators are worrying that Europe’s flagship securities-industry overhaul has become more of a problem than a solution.

How Mifid Has Made its Mark in the US – Financial Times (subscription)

The launch of Mifid II represented Europe’s biggest shake-up in the relationship between banks and investors in a generation. Now an unusual switch from US regulators may help elements of it to spread across the Atlantic.

Top China Trade Negotiator to Visit US to Face Tariff Threat – Bloomberg (subscription)

China’s top trade negotiator Liu He will visit the US this week for a new round of high-wire talks, in a sign Beijing is battling to keep negotiations on track after President Donald Trumpp ratcheted up pressure with plans to raise tariffs on Chinese goods Friday.

Regulatory News

SEC May Allow Wider Cross-Margining of Single-Name CDS – (subscription)

Banks are pressing US regulators to permit cross-margining of single-name credit default swaps against not only CDS indexes but also cash products and options. 

London Looks to Asia for its Post-Brexit Survival – Financial News (subscription)

Depending on your political outlook, Brexit will either open up a host of fresh business opportunities around the world, or force the UK to look further afield to make up for new trade frictions with the European Union. Either way, Britain is set to have a greater international presence – and for financial services, that means addressing the dragon in the room.

London Clearing House Shift Heads off UK-EU Regulatory Battle – Financial Times (subscription)

As Brexit has unfolded, London has fought a rearguard action for nearly three years to prevent one prized business – the clearing of euro-denominated interest rate swaps –  from moving to Europe. But quietly, another part of the clearing market is shifting to the eurozone.

Crypto News

Fidelity Will Offer Cryptocurrency Trading Within a Few Weeks – Bloomberg (subscription)

Fidelity Investments, which began a custody service to store Bitcoin earlier this year, will buy and sell the world’s most popular digital asset for institutional customers within a few weeks.

Regulators Ready to Approve Ethereum Futures, CFTC Insider Says – CoinDesk

The US Commodity Futures Trading Commission is willing to approve an ether futures contract – provided it ticks all the right boxes, a senior official has told CoinDesk.

Binance’s Compliance Drive Continues with New Elliptic Partnership – CoinDesk

Cryptocurrency exchange Binance is continuing to ramp up its regulatory compliance efforts. The exchange has just partnered with blockchain analytics startup Elliptic to boost its compliance and security capabilities.

Bitfinex: NYAG’s Order Is Hurting Our Customers and the Crypto Market – CoinDesk

Bitfinex’s customers might suffer if it can’t access a line of credit from stablecoin issuer Tether, the exchange’s attorneys have argued.

Company News

Yuan Trading Finally Goes Global as Bots Displace `Voice Market’ – Bloomberg (subscription)

As China’s integration with global financial markets intensifies, some of the most sophisticated electronic traders are stepping up to buy and sell more of the country’s currency. Jump Trading and XTX Markets say they are boosting volumes in the offshore yuan market as well as Asian non-deliverable forwards.

Refinitiv Improves Latency for its FX Matching Clients – Traders Magazine

Users of Refinitiv’s FX Spot and Forwards Matching now have access to lower latency and opportunities for cost savings following the migration of the solution to a new data centre. 

Citigroup Forms Lab for Traders to Code and Coders to Trade – Bloomberg (subscription)

Citigroup has invited second- and third-year analysts from across its markets and technology teams to apply for Citigroup’s newly formed Markets Acceleration Lab. The firm hopes to select around 12 people to be part of the lab, which kicks off this fall, and use technologies such as machine learning and artificial intelligence to help solve problems in the firm’s trading business.

Deeper Cuts in Store for Asset Managers, Consultants Warn – Financial News (subscription)

Asset managers left reeling after a painful 2018 could see profits drop by around 30% over the next four years, and are being urged to slash costs further to cope.

LCH Basis Swap Templates May Aid Libor Conversion – (subscription)

A new suite of basis swap templates being rolled out by LCH could take some of the pain out of the Libor transition, making it easier for compression providers to tear up existing Libor contracts and replace them with trades referencing new risk-free rates.  

Market Savvy

Aussie Jumps as RBA Holds Rates Steady; Dollar Drifts Lower – Reuters

The Australian dollar sharply rose on Tuesday after the country’s central bank held rates at a record low, dashing speculation it may ease policy following a below-par reading of inflation.

Pound Steadies Near $1.31 as Brexit Talks Resume – Reuters

The pound remained stuck near $1.31 as Brexit talks resumed on Monday between the British government and the main opposition party and traders refrained from taking positions on the currency.

Turkish Lira Hits 7-Month Low after Istanbul Election Annulled – Financial Times (subscription)

Turkey’s currency dropped to its lowest level since October, while its bonds came under pressure, after a decision by the country’s election council to nullify a mayoral election in Istanbul sharpened investor concerns.