Top Headlines

Are Traders Getting an Early Glimpse at UK Government Data? Currency Markets Suggest Yes – Wall Street Journal (subscription)

A comparison of trading data for the Swedish krona and British pound may provide further evidence that some investors could be trading with knowledge of UK official statistics before they are published.

Ex-Deutsche Bank Trader Bittar, Others Drop FCA ‘Identity’ Suits – Bloomberg

Ex-Deutsche Bank trader Christian Bittar and at least four other high-profile individuals caught-up in regulatory probes have withdrawn lawsuits against the UK Financial Conduct Authority over claims they were improperly identified in penalty notices, according to court records.

Softwood Import Tariffs Harden Dollar – Financial Times (subscription)

Canadian dollar takes a tumble on threat of US trade war over wood and milk.

Trump’s Tariffs Bring Peso and Loonie Bears Back to Life – Bloomberg

Concern Donald Trump would move to enact trade barriers with his Nafta counterparts returned to the fore after the US slapped tariffs of up to 24 percent on imported softwood lumber from Canada.

Pound Slips Versus Euro, Investors Await Fresh UK Impetus – Reuters

Sterling dipped versus the dollar and euro, struggling for direction ahead of first quarter growth numbers due on Friday in a week so far dominated by events in the euro zone.

Le Pen Ducks Euro Exit Question Knowing French Want the Currency – Bloomberg

French presidential candidate Marine Le Pen sought to soften her position on Europe, insisting she feels European and “understands” the concerns of many French that their savings could lose value should the country return to the franc.

Yen Sags as Risk Sentiment Recovers; Euro Holds Firm – Reuters

The dollar edged higher against the yen, while the euro held firm near a five-and-a-half month high due to receding concerns about the risks posed by the French presidential election.

Beijing Promises Currency Reforms, But on Its Timetable – South China Morning Post

Chinese officials in US say yuan will be made more convertible, but only after capital outflows are cut and corporate debt is curbed.

StanChart Financial Markets Revenues Dip 10%, Hurt by FX – Reuters

Standard Chartered’s financial markets revenues fell 10% last quarter from a year earlier as it suffered a sharp drop in FX income, lagging other investment banks and taking the shine off a rise in profits due to lower loan losses.

Volatility Easing Gives Shot in Arm to Carry Traders – Financial Times (subscription)

Turkish lira is a good target to invest yen funding, argues MUFG.

Scarred Investors Want Proof Naira to Really Float on Window – Bloomberg

Nigeria’s latest attempt to ease the dollar shortage choking its economy is dependent on traders trusting the central bank.

Sweden Shifts from Jumbo Jets to Historic Warships in Coin Quest – Financial Times (subscription)

Sweden’s Riksbank is still pressing on with its quest to convince people to exchange their soon-to-be obsolete coins and banknotes, but it is at least making great strides in the use of inventive measurements.

Regulatory News

CFTC Adds 71 Names to RED List – Profit & Loss

The US Commodity Futures Trading Commission has more than trebled the number of names on its Registration Deficient (RED) list.

CFTC Counsel Warns of Threat to Clearing Portability – Risk (subscription)

Leverage ratio seen as biggest impediment to porting client positions.

ITG’s Selway Eyed to Run Markets Division at US SEC: Sources – Reuters

Jamie Selway, head of execution services at agency brokerage Investment Technology Group, is a front runner to head the Trading and Markets division at the US Securities and Exchange Commission, according to three sources familiar with the matter.

European Bank Executives Push Back at Regulators – Wall Street Journal (subscription)

European bank executives told regulators they were taking too long to complete the postcrisis financial rule book in a shifting political environment, leaving lenders at competitive disadvantage and putting the bloc’s economic recovery at risk.

Should MiFID II be Reviewed Post-Brexit? – City Wire

A week after prime minister Theresa May triggered Article 50 and Brexit negotiations officially got under way, New City Initiative (NCI) warned MiFID II needs to be reviewed.

Wall Street is Buzzing About the Possibility of Gary Cohn Someday Replacing Janet Yellen – CNBC

Should President Donald Trump choose to replace Fed Chair Janet Yellen when her term expires next year, he could well turn to someone close by to fill the void.

US Regulators to Review Decision Denying Bitcoin ETF: Filing – Reuters

The US Securities and Exchange Commission plans to review its decision last month to block the listing of the first US exchange-traded fund tracking the digital currency bitcoin, a regulatory filing showed.

Company News

Eurex to Launch OTC FX Clearing Service – The Trade

Eurex will begin clearing OTC FX derivatives following the launch of new systems changes to clearing swaps, as it looks to compete in new asset classes with LCH.

CTAs Challenged by Divergent Trends – Profit & Loss

Managed futures traders lost -0.44% in March, according to the Barclay CTA Index compiled by BarclayHedge.

Redline Relocates Lau for European Sales Role – Profit & Loss

Redline Trading Solutions has named Patrick Lau as its director of EMEA sales, relocating him from his previous sales role in New York to London.

Squarepoint Capital Expands Agreement with Kx – Profit & Loss

Squarepoint Capital, a global systematic investment manager, has significantly expanded its use of Kx technology for investment research, according to Kx Systems, a subsidiary of First Derivatives.

Exchanges Compete for Dominance in Derivatives – Nikkei Asian Review

Record trading worldwide but Japan falls behind.

New Tools Give Better Picture, Literally, of Financial-System Risk – – Wall Street Journal

Some envision the technology eventually could be used to build a dashboard of the global financial system that regulators could monitor to spot crises before they hit.

A for Investors Will Bypass Banks to Gain CEO Access – Bloomberg

A group of upstarts is seizing on new European Union rules to shake up banks’ matchmaking role between investors and corporate executives.

Market Savvy

LatAm Currencies Weaken as Trump Tax Pledges Spark Inflation Bets – Reuters

Latin American currencies weakened as US President Donald Trump’s promise to announce “big tax reform and tax reduction” invited bets that US interest rates could rise faster than expected.

Aussie Hits Two-Week Low After Soft Core Inflation – Reuters

The Australian and New Zealand dollars sank, leading moves among major developed currencies after Australian inflation data pointed to an economy under strain from mediocre growth in China.

Zloty Benefits from Calmer Nerves and Higher Growth Forecasts – Financial Times (subscription)

The euro may have jumped against most of its peers since the first round of France’s presidential election on Sunday, but one currency in the region is managing to buck the trend.