Fed Keeps Interest Rates Unchanged; Signals No More Increases Likely This Year

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Fed Keeps Interest Rates Unchanged; Signals No More Increases Likely This Year – The Wall Street Journal (subscription)

Federal Reserve officials indicated Wednesday they are unlikely to raise interest rates this year and may be nearly finished with the series of increases they began more than three years ago now that US economic growth is slowing.

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FXPA Submits Comments to CFTC on SEF Reforms

Last week, the Foreign Exchange Professionals Association (FXPA) submitted a comment letter to the Commodity Futures Trading Commission (CFTC) regarding its proposed rulemaking on SEF reforms. 

FXPA’s letter was focused on the need for the CFTC to exempt NDFs and exchange-traded or cleared swaps from de minimis threshold calculations as part of any SEF reform.  

As FXPA’s letter noted, “[E]xempting exchange-traded and cleared swaps from AGNA calculations can improve SEF and DCM market volume and liquidity…Such an action would be a market-oriented solution to the problem of low SEF volume and liquidity.” 

FXPA also expressed appreciation for the CFTC’s interest in comprehensively updating its SEF regulations, “which were last comprehensively reviewed over five years ago”.

FXPA’s comment letter can be found here.

FXPA Announces New Officers, Board Members

The Foreign Exchange Professionals Association (FXPA) voted in a slate of new Board and Officers members at its annual meeting on February 5. 

In roles that took effect March 1, 2019, Lisa Shemie, Associate General Counsel of Cboe Global Markets and Chief Legal Officer of Cboe FX and Cboe SEF, was elected as the group’s new Chair; Jill Sigelbaum, Head of FXall, Refinitiv, was elected Vice Chair; Paul Houston, Global Head of FX, CME Group, was tapped as Treasurer; and Jason Vitale, Managing Director, Chief Operating Officer FX & Head of Client Execution, BNY Mellon, was re-elected as Secretary.

Shemie succeeds two-term Chair Chip Lowry, Senior Managing Director at State Street Global Markets.  “Chip has been a fantastic Chair of the FXPA, and his energy, ideas and leadership have resulted in a stronger and more visible organization poised to be even more impactful going forward. I look forward to continuing to work with Chip during the years ahead and to leaning on him for his assistance and guidance as I take on this role.” 

Sigelbaum replaces Jonathon O’Donnell, Investment Manager at CalPERS, in the Vice Chair role, while Houston succeeds Sean Tully, Senior Managing Director at CME Group, who has held the Treasurer role for the past two terms.

Members new to the Board include Lauren Rosborough Watt, Economics & Investment Manager, CalPERS; Mark Bruce, Head of FICC, Jump Trading; Laine Litman, Global Markets Group, Virtu Financial; and Houston of CME. David Goone, Chief Strategy Officer at ICE, Jessica Sohl, President, HC Technologies;Tod Van Name, Global Head of FX Electronic Trading at Bloomberg; and Vitale of BNY Mellon, were re-elected to the Board. The latest appointments join current Board members Christopher Matsko, Head of FX Trading Services, Portware; Tahreem Kampton, Senior Director, Microsoft; KC Lam, Head of FX and Rates, Singapore Exchange (SGX); as well as Lowryof State Street; Sigelbaum of Refinitiv; and Shemie of Cboe.

During the annual meeting, Shemie, FXPA’s new Chair, shared a proposed vision of the group’s mission, as well as ideas for efforts in the year ahead, including working groups focused on micro FX issues of interest to its membership, as well as advocacy, education and collaboration with other industry groups so as to secure a meaningful role in the continued development of global currency trading market structure and norms.Launched in September 2014, FXPA is a Washington, DC-based organization that represents the collective interests of a full array of professional foreign exchange industry participants. The group was developed to engage key regulators, policymakers, the news media and general public through education, research and advocacy, with the goal of advancing a sound, liquid, transparent, and competitive global currency market. 

Who Are the Potential Buyers of Refinitiv?

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Who Are the Potential Buyers of Refinitiv? – Profit & Loss

In October 2018 a consortium, led by the private equity firm Blackstone, concluded a deal to acquire 55% of the equity in Thomson Reuters Financial & Risk business, now rebranded as Refinitiv. No one in the market is under the illusion that Blackstone intends to maintain its ownership of Refinitiv, least of all the staff who work there.

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A Waste of Two Years’ – City Reacts to Crushing Defeat of May’s Brexit Deal

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A Waste of Two Years’ – City Reacts to Crushing Defeat of May’s Brexit Deal – Financial News

Reaction from UK finance as Theresa May fails to get her Brexit deal across the line at the second attempt.

FIA Warns of Increased Market Fragmentation Caused By Regulation – FIA

FIA President and CEO Walt Lukken has released a white paper that expresses FIA’s concerns about increased fragmentation of the global listed and cleared derivatives markets due to inconsistent and duplicative regulatory frameworks.

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