The European Union will insist that Britain pays a £39 billion bill and implements the Irish backstop before beginning emergency talks to prevent an economic crash after a no-deal Brexit.
- Softer, Later Brexit Likely if Parliament Defeats Withdrawal Agreement – Goldman – Reuters
- Brexit and Trade to Haunt Europe’s Investment Banks in Nightmare Quarter – Reuters
Theresa May will put her Brexit divorce deal to a vote in Parliament on Friday, but she’s holding back the part of the package that focuses on the future trade and security relationship.
In late 2017, the International Swaps and Derivatives Association produced a data standardisation model that could save dealers $3 billion a year on reconciling data on post-trade, back-office processes for swaps. But interest in the project – the common domain model (CDM) – has been underwhelming in some quarters.
Measures put in place by Europe’s top securities watchdog to safeguard over-the-counter derivatives transactions in a no-deal Brexit will no longer apply since Britain’s exit date has been extended.
Update on the UK’s withdrawal from the European Union – preparations for a possible no-deal Brexit scenario on 12 April.
The European Securities and Markets Authority (ESMA) has added new Questions and Answers and updates on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/MiFIR).
The crux of the matter is that the incident at Nasdaq Clearing proved that the system works, even if it raised a number of pertinent questions about how current rules need to be fine-tuned.
Randal Quarles took over as FSB chair from Mark Carney in November.
When Ethereum debuted in 2015, it was hailed as the more savvy successor to Bitcoin because it offered tools that allowed programmers to create apps that could perform transactions automatically rather than just serving as a means of exchange.
Libra rebrands to Lukka after the Renaissance-era mathematician widely known as the father of modern accounting.
Crypto exchanges may still be struggling with compliance, according to regtech startup Coinfirm.
After almost three decades in senior compliance roles at large financial firms including Bank of New York Mellon’s Pershing and Goldman Sachs Group Inc, Jeff Horowitz made an unconventional career move.
Nomura Holdings Inc. is planning to cut dozens of jobs across its trading and investment-banking businesses in Europe and the U.S. as the brokerage struggles to make a profit overseas, people familiar with the matter said.
FastMatch to Launch Singapore Matching Engine– Profit & Loss
FastMatch is setting up a new matching engine in Singapore, which is expected to be fully operational in the fourth quarter of 2019. In addition, FastMatch has opened a new commercial office in Singapore.
Ex-Barclays Plc trader Colin Bermingham was convicted of helping to manipulate a benchmark interest rate by a London jury, the ninth conviction secured by UK prosecutors in a seven-year probe of rate-rigging.
TOCOM will become a wholly-owned subsidiary of JPX, and together they will launch a consolidated exchange for stocks, financial and commodity derivatives by September 2020.
The pound edged higher in Asia trading on Friday, nudging above the weekly lows it hit overnight, ahead of Theresa May’s third attempt to win MPs’ backing for her Brexit deal.
Turkey’s currency resumed its slide in Asia trading on Friday despite apparent moves by the country to shore up the lira.
A jumbo wager on an Australian interest rate cut has emerged again, stoking speculation the same trader is hoping to strike gold at the third attempt. A splurge of buying has seen open interest in Australia’s April bank bill futures jump almost 30 percent so far this week to the highest since May 2016.
The UK increasingly resembles an “emerging market” and risks a currency crash should it leave the EU without a deal next month, according to one of the pioneers of investing in developing economies.
- Theresa May to Make Last-Ditch Effort to Save Brexit Deal – Financial Times
- The Biggest Brexit Loser This Time Wasn’t May – Bloomberg
MPs are preparing to vote for their preferred Brexit option on Wednesday evening, while Prime Minister Theresa May is due to meet anti-EU rebels in her own party to persuade them to back her deal, so she can schedule a third attempt to gain parliament’s approval.
- Tusk Tells EU Lawmakers Be Open to Long Brexit Delay – Law360 (subscription)
- The Brexit Delusion of Taking Back Control – Financial Times
Theresa May on Monday night risked losing control of Brexit after MPs voted by 329 to 302 to seize control of the House of Commons timetable and test support for alternatives to her withdrawal deal.Read More
Turkish President Recep Tayyip Erdogan warned that bankers deemed responsible for creating excessive demand for hard currency and making misleading predictions on foreign exchange rates will “pay a heavy price” after next week’s elections.
- Turkey Probes JP Morgan After Lira’s Worst Slide Since 2018 Crash – Bloomberg
- Even I Have to Draw the Line at FX Strategists Being Labelled Market Manipulators (opinion) – Profit & Loss
European leaders allowed Prime Minister Theresa May to postpone the Brexit deadline beyond next week, but warned the UK could still crash out of the trade bloc in mid-April unless the British political stalemate over the withdrawal agreement was broken.
- EU Imposes New Brexit Timetable Allowing May Last Chance for Deal – Financial Times
- Brexit Risks Could Still Disrupt European Finance – Bloomberg
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.Read More
FXPA’s letter is 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.Read More
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.