Top Headlines

Apple Warning Triggers Flash FX Move – Profit & Loss

FX markets in early Asia experienced what dealers refer to as a “mini flash crash” today as risk aversion levels were ramped up and volatility ensued following a profit warning from Apple.

• ‘Flash Crash’ Moves Hit Currencies as Yen Spikes on Apple and China – Financial Times
• The Twilight Trading Hour Strikes Currency Markets Again – The Wall Street Journal (subscription)
• Sterling Sent Lower after Asian ‘Flash Crash’ Rocks FX Markets – Reuters
• Yen Soars as Investors Seek Safety on China Growth Fears – Reuters

Top 9 Market Structure Trends for 2019 – Greenwich Associates

Market structure change over the past decade has been directly or indirectly catalyzed by the credit crisis of 2008. It can be argued that everything from cryptocurrency to swaps clearing to ETFs saw change and/or growth due to the market’s reaction to the near collapse of the global economy10 years ago. That post-credit crisis era, however, is now over. 

• 2019: A Year for Innovation and Technology – FX Week (subscription)

ParFX: Transparency to Drive Trading Practices as Code Adoption Grows – FX Week (subscription)

FX Global Code will spur market participants to amend execution terms and conditions.

• Kx Systems: ‘Fill or Kill Year’ for Global Code Adoption – FX Week (subscription)

Here’s (Almost) Everything Wall Street Expects in 2019 – Bloomberg

This is the reader’s digest of research notes for the year ahead – a compendium of more than 200 market themes, bets and threats from many of the biggest financial institutions in the world. 

Regulatory News

Pressure on Small Brokers Grows a Year after New EU Rules – Reuters

A year after new EU rules forced banks and brokers tocharge investors for equity research, the pressure on small brokerages to make ends meet is becoming intense and more look set to merge or even shut up shop in 2019.

• MiFID II: A Year On – IPE.com
• Research Analysts’ Existential Crisis Enters MiFID II Era – Bloomberg

European Post-Trade Still Fragmented Despite T2S – Markets Media

Post-trade securities processing in Europe remains fragmented despite the first year of full operation of TARGET2-Securities, the platform which aimed to harmonise settlement and reduce costs.

Wall Street Goes to War over Market Data and Access – The Trade

A roundtable hosted by the SEC with high-profile market participants highlighted just how divided Wall Street and regulated exchanges are on the issue of market data and access to exchanges.

Crypto News

Crypto Funds Appeal for Patience after Market Rout – Financial Times

Fund managers specialising in cryptocurrencies are appealing for patience from investors, after a year in which huge falls in prices severely dented their performance.

ICE’s Bakkt Completes $182 Million Funding Round – The Trade

Intercontinental Exchange’s cryptocurrency exchange and platform completes first funding round with 12 investors on board.

• Bakkt Has Made 3 New Hires: Here’s Who’s Working on the $182.5M Crypto Project – The Block

Fidelity’s Man: Can Tom Jessop Bridge Crypto and Wall Street for Good? – Coin Desk

Everyone in cryptocurrency has a story about the time they went down the proverbial rabbit hole. Tom Jessop’s takes place in his kitchen.

Market Synergy: Infrastructure Ready for Banks to Trade Digital Assets – FX Week (subscription)

With institutional-grade connectivity and infrastructure now in place, 2019 will see financial institutions enter the crypto market in a fundamental way, says James Banister, chief executive of cryptocurrency connectivity provider Market Synergy.

Novogratz Increases Stake in Galaxy in Wake of Meltdown – Bloomberg

Michael Novogratz is putting more of his money where his mouth is when it comes to cryptocurrencies.

Company News

December FX Volumes Hold Up – Profit & Loss

Data from CboeFX and Fastmatch indicate that while there was an inevitable drop from November, FX activity in December was historically robust.

Northern Trust: Tailoring Algos to Suit Client Needs – FX Week (subscription)

Interest in algorithms is growing across the FX industry.

Bloomberg, Predata Collaborate as Alternative Data Goes Mainstream – Global Investor (subscription)

Predata CEO Hazam Dawani says big players like Bloomberg are positioning themselves for the change.

Market Savvy

Witching Hour for Currencies Strikes Again – Bloomberg

Eruptions of volatility have occurred to a growing number of currencies in the past few years. They have one thing in common – the timing of the outbreaks has been uncannily similar.

Happy Birthday to the Euro, Destined to Stagger On and Condemn Europe to Further Disaster – The Telegraph

The single currency has been an unmitigated catastrophe.

• The Euro is the Most Dysfunctional Currency Ever Created – The Spectator
• Challenging Times Lie Ahead for the Eurozone – FinancialTimes

Turkey’s Lira Kicks Off 2019 on the Wrong Foot – Bloomberg

The Turkish lira is off to a bad start to the year. The currency has shed more than 3.5 percent of its value against the dollar in the first three days of 2019. Not only is that the most in the world, it’s also almost twice as much as the runner up, the Swedish krona.

This Will Be the Year US Exceptionalism Fades for Investors – Financial Times

This year, US exceptionalism looks set to fade on several fronts. For starters, the growth gap between the US and the rest of the world should narrow significantly.