All posts by Julie Ros

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Where Now for the Rules that Rocked European Finance? – Financial Times (subscription)

Helping small and medium companies access capital markets was at the heart of Mifid II but more than 16 months on, bankers and regulators are worrying that Europe’s flagship securities-industry overhaul has become more of a problem than a solution.

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Platform Volumes Plummet Amid Low Volatility – Profit & Loss

The average daily volumes on Cboe FX, FXSpotStream and Euronext FX in April were down 18.2%, 15.3% and 23.8%, respectively, compared to March. This sizable drop in volumes does not come as a surprise given the low market volatility last month and anecdotal evidence that suggested trading activity was subdued.

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Firm Data Pushes Euro Higher; Dollar Resumes Fall – Reuters

The dollar resumed its decline on Thursday, shrugging off Fed Chair Jerome Powell’s relatively confident comments on the US economy as survey figures suggested fears of a broadening economic weakness in Europe could be exaggerated.

• Fed Holds Rates Steady, Signals Concern Over Sluggish Spending, Low Inflation – The Wall Street Journal (subscription)
• Pound and Euro Steady After Falling in Wake of Fed Pause – Financial Times (subscription)

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Big Banks Are Struggling to Get to Grips With Life After Libor – Financial Times (subscription)

Scrapping Libor is a noble and sensible aim. But replacing a number embedded in everything from derivatives prices to households’ monthly mortgage repayments and banks’ internal transfer systems, in the timeframe available, is a mind-bendingly tricky task. The complications for internal systems of banks, investors and companies have barely even been considered outside of the dark rooms where spreadsheet warriors are still trying to understand what happens when the music stops.

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Brexit Threatens Pound’s Status as Global Currency, Surveys Says – Financial Times (subscription)

Brexit is likely to threaten the pound’s status as a global reserve currency according to a survey of central bank money managers who say Britain’s departure from the EU will alter their views on sterling.

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Dead Calm in Currency Markets Unnerves Investors – Financial Times

Corporate treasurers tend to like nothing more than a stable exchange rate, allowing them to budget and plan with a measure of confidence. But for Wall Street strategists and traders who earn a living from market movements, extreme calm can be unsettling.

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Shaving Milliseconds Off Currency Trades Could Make Singapore Billions – Bloomberg

Singapore is grabbing an opportunity measured in milliseconds to win a bigger slice of the world’s $5.1 trillion-a-day foreign exchange market. The Southeast Asian nation is encouraging major FX players to build systems in the country that would remove the sub-second delay caused by routing trades via Tokyo or London. 

• Technology to ‘Transform’ a Third of Singapore Finance Jobs: Study – Regulation Asia

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FCA Chief Eyes ‘Lower Burden’ Regulation After Brexit – Financial Times

Britain would favour a “lower burden” approach to financial regulation after leaving the EU, the head of the UK’s market watchdog has said as the regulator looks to reshape the rule book for financial services.

• UK Watchdog Urges EU to Make Financial Market Access Flexible – Reuters
• Halloween Brexit Gives JP Morgan Bankers With ‘Suitcases By the Door’ Extra Time – The Telegraph (subscription)

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Trading Firms Cry “Last Look” in the Futures Market – Profit & Loss

As a futures exchange proposes a new speed bump mechanism, a number of market participants are coming out in opposition to it. Some of the arguments they’re making will sound familiar to those in the FX markets.