76% of EU Traders Lose, Deutsche Profits from Turkish Crash – Best of the Week

Catch up on last week's top stories.

Analysis – 76.1 percent of customers of EU brokers lose money trading

Pan-European regulator ESMA introduced new laws for foreign exchange companies in August, which include many restrictions which are likely to harm their profits.

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One new obligation is that the firms reveal what percentage of their customers make and lose money. The primary goal of this new regulation is to put a halt on misleading advertising.

Which broker has the most winners and which has the most losers? Finance Magnates presents the statistics of the top 30 European brokers for your perusal.

Analysis – why won’t the SEC approve Bitcoin ETFs?

Various entities have been unsuccessfully trying to get approval from the Securities and Exchange Commission to sell Bitcoin exchange-traded funds, a kind of financial derivative, since 2013. The latest to apply is a New York-based blockchain company called SolidX in conjunction with a money management company called VanEck.

Despite two rejections, some believe that VanEck, which manages $46 billion in customer assets, will be successful on its third attempt. Why is the SEC not putting out?

Analysis – no more open source?

Open source code has always been one of the defining characteristics of cryptocurrency, and the code was usually published on a website called GitHub. This site allows people to view and review other people’s work, and it still is the most popular such platform on the internet.

However, lately, a trend has emerged in which developers are not publishing their work, or at least not on GitHub. This can be seen as negative because if projects cannot be reviewed, more scams could result.

Analysis – Plus500 statistics

Plus500, a CFD broker from Israel, attracted a record number of clients last year because of the cryptocurrency craze but lost a lot of money recently.

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This analysis finds that this was the result of cryptocurrency volatility, and goes into detail about the firm’s financial sources and results.

Interview – Coinfloor and market manipulation

Coinfloor is a British cryptocurrency exchange which was the first to offer cryptocurrency-based futures contracts in the UK. Finance Magnates spoke with co-founder Mark Lamb about the problem of market manipulation.

The Bitcoin market is suspected by some to be the subject of a lot of price manipulation. Lamb explained how an “incredibly time-intensive problem” could be made more manageable with technology.

German bank profits from Turkish misery

Deutsche Bank traders reportedly made $35 million profit in two weeks by taking advantage of the recent crash in the value of the Turkish lira.

Traders working for the bank’s regional team reportedly waited until the currency was at its least valuable before profiting from the low prices of certain assets. It was set up in 2016 and has made $135 million this year.

The crash of the lira has been attributed to sanctions applied by the US to Turkey.

A bank buys an FX analysis company

State Street Corporation of Boston is a global custody bank. Last week, it purchased BestX of London.

BestX was created in 2016 by people that used to work at Morgan Stanley. It sells software that analyses transaction costs of financial derivatives.

State Street Corporation will benefit because it can now offer this information to its customers.

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