Jobs Report Deepens Emerging Market Rout

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Join FXPA at FIA Boca
Attending FIA Boca this week? Please join the membership of the Foreign Exchange Professionals Association (FXPA) for a Meet & Greet session at the FIA Boca conference. Representatives from the FXPA will be in the Lounge Area adjacent to Bar Luna from 5:30-6:30 on Tuesday, 10 March. Please rsvp to jros@profit-loss.com

Jobs Report Deepens Emerging Market Rout – Financial Times (subscription)
The rout in emerging market currencies accelerated after Friday’s better than expected US jobs report sent the US dollar higher and supported investors’ view that the US Federal Reserve could raise interest rates sooner rather than later this year.

What Next for the IDB Industry? – Profit & Loss (free story)
Will BGC’s acquisition of GFI spark further consolidation in the inter-dealer broker industry? It has been a difficult few years for the IDBs as a combination of low volatility and continued regulatory overheads for the banks has muted trading volumes, and therefore the IDB’s profits.

Do News Reading Algos Give an ‘Unfair’ Advantage? – Profit & Loss(subscription)
We had something of a throwback in FX markets on Friday when the US employment report had to be posted the “old-fashioned” way, onto the BLS website, something that was detrimental to the news reading algos.

ICE Chief Jeff Sprecher Warns London Risks Losing Derivatives Lead –Financial Times (subscription)
London risks losing its position as the world’s leading centre for derivatives trading amid an onslaught of new European regulations, one of the world’s biggest exchange operators has warned.

Video: Top British Fund Manager Claims Eurozone Not Viable in Current Form – BBC
In a HARDtalk interview to be broadcast on BBC World News today (9 March), the fund manager Neil Woodford tells Stephen Sackur that he does not believe that the Eurozone is viable in its current form and that he believes that continued uncertainty over a potential British exit from the EU will be damaging to the British economy.

Greece Will Never Quit Eurozone: EU Commission Chief – Reuters
Greece will never leave the euro zone as to do so would cause “irreparable damage” to the EU, the head of the EU’s executive Commission Jean-Claude Juncker said in a German newspaper interview.

European QE May Not Live Up to Draghi’s Hopes – Financial Times(subscription)
So here we go again. Almost exactly six years to the day since the UK launched quantitative easing, the European Central Bank will on Monday start buying bonds in its own version of what was once called extraordinary monetary policy.

Regulatory News

FIA Conference to Delve Into Cross-Border Regulations – FOW (subscription)
Timothy Massad, chairman of the Commodity Futures Trading Commission, is poised to give the keynote address at the FIA conference this week. Cross-border regulation and increased trading costs are on the agenda.

Barclays and Deutsche Traders Face Euribor Questioning – Financial Times(subscription)
UK fraud investigators have called in former traders from Barclays and Deutsche Bank for interview as suspects in their long-running criminal probe into whether a key borrowing benchmark was rigged.

UK Parliament Passes Final Section of Banking Reform Legislation – Profit & Loss (free story)
The UK government has completed its major overhaul of the banking sector, as the last piece of the Banking Reform Act 2013 successfully concluded its passage through parliament.

Practical Approach to Supervision Responsibilities Under New Law – New Zealand FMA
The Financial Markets Authority (FMA) has spelt out its practical approach to its supervision responsibilities, as the financial services and markets regulator increases the emphasis on supervision under the newly effective Financial Markets Conduct Act 2013 (FMC Act).

Boakes Sentenced Following FCA Prosecution for £3.5 Million Fraud – FCA
Following an FCA prosecution, Phillip Boakes was sentenced at Southwark Crown Court to 10 years’ imprisonment for defrauding investors of at least £3.5 million, using false instruments and accepting deposits without authorisation through his company CurrencyTrader.

Company News

Saxo Bank Defends CHF Decisions to Denmark’s FSA – Profit & Loss (free story)
Saxo Bank claims it did not try to stop trading in EUR/CHF after the removal of the 1.20 floor by the Swiss National Bank in January due to concerns that this would leave it open to legal action by clients.

LMAX Exchange Partners With Z.com To Expand Liquidity Solutions Via PrimeXM – LeapRate
LMAX Exchange has partnered with Z.com, a subsidiary of GMO CLICK, to facilitate a no-“last look” liquidity pool to clients via bridging and hosting solutions-specialist PrimeXM.

Market Savvy  

Will Beijing Devalue Its Currency?
Morgan Stanley
Large currency devaluation is not in our base case for People’s Bank of China (PBOC) monetary easing. We have long held the view that sluggish domestic demand and ‘lowflation’ risks warrant more policy easing in China, especially in the monetary area.

Press Releases

SGX Deepens Presence in Greater China
Singapore Exchange (SGX) opened its new Hong Kong office, which is registered as Singapore Exchange Derivatives Trading (SGX-DT). Chew Sutat, executive vice president of SGX, hosted the office opening and reiterated SGX’s continued focus and commitment to its operations in Greater China.

Investment Banks Must Implement Conduct Risk Strategies
Investment banks globally must begin implementing measures to offset the risk that they could be fined by regional or global regulators for employee misconduct, according to a new research report from GreySpark Partners, a capital markets consulting firm.

ESMA and MAS Conclude MoU on CCPs
The MoU establishes cooperation arrangements between the signatory authorities regarding central counterparties (CCPs) established in Singapore, are authorised by the Monetary Authority of Singapore and have applied for recognition under EMIR.

Fidessa Explores Challenges of Global Execution
Fidessa has released a new paper entitled “Shifting Sands – The Harsh Realities of Executing in Today’s Markets”. The paper explores how the electronic execution landscape has evolved over the past 10 years and reveals the challenges that now exist for brokers wanting to trade across global markets.

Industry Events