Top Headlines

Bloomberg Terminals Experience Outage – CNBC
Bloomberg’s trading terminal experienced an outage on Friday morning, with some users saying they were unable to perform their usual trading activity.

BoA the Latest Bank to Settle in FX Litigation Case – Profit & Loss (free story)
Bank of America has become the third bank to agree a settlement in the US antitrust litigation lawsuit that accuses 12 major banks of manipulating the FX market.

Bernanke to Advise Hedge Fund Citadel – New York Times
For eight years, Ben Bernanke, the former Federal Reserve chairman, was steward of the world’s largest economy. Now he has signed on to advise one of Wall Street’s biggest hedge funds. Bernanke will become a senior adviser to Citadel, the $25 billion hedge fund, offering his analysis of global economic and financial issues to Citadel’s investment committees. He will also meet with Citadel’s investors around the globe.

UK Poll Uncertainty Holds Back Sterling – Financial Times (subscription)
Election uncertainty has spooked currency investors and forced sterling to retreat, making a mockery of the pound’s exalted position against the dollar last summer.

Greece Enters Twilight Zone as Visions of Euro Exit Take Shape – Bloomberg
With Greek officials hinting they could be forced from the euro and the country’s creditors growing frustrated with the government’s foot-dragging, analysts are asking what might happen if talks break down.

Everyone Hates the Euro – Bloomberg View
Currencies are the equivalent of company share prices, only for countries or regions. In the same way as investors favor the stocks of well-run companies with healthy profit outlooks in expanding industries, money managers lean toward the currencies of nations with growing economies, political stability and well-run monetary policies. On that basis, the euro region is in trouble.

Dollar Heads for Worst Week in a Month on Weak US Data Run – Reuters
The dollar fell for a fourth straight day on Friday, coming close to its one-week low, after a run of weak US economic data cast doubt on prospects for a Federal Reserve interest rate rise in coming months.

Australian Dollar Rally May Not Last – The Sydney Morning Herald
The Australian dollar hit a three-week high early Friday in the wake of surprisingly strong local jobs data and as the greenback weakened further, but analysts doubt the rally will last.

Rouble Leads Emerging Currency Losses on Rate Cut Hints – Reuters
The prospect of deeper interest rate cuts took Russia’s rouble more than 2 percent lower on Friday, knocking it off 4-1/2-month highs against the dollar, while Russian equity markets also slipped.



Regulatory News

Hillary Clinton Said to Hire Former Wall Street’s Gensler as Campaign CFO – Bloomberg
Hillary Clinton is planning to name Gary Gensler, a former top federal financial regulator and strong advocate for strict Wall Street rules, as the chief financial officer of her campaign, according to a Democrat familiar with the decision.

Trader Charged With Spoofing Market Loses Dismissal Bid – Bloomberg
The first high-speed trader charged with a method of market manipulation known as spoofing lost a bid to dismiss the case based on an argument the new law is too vague to be enforced.

FINRA Board Approves Changes to Communications with the Public Rules, Trading Activity Fee (press release)
The Financial Industry Regulatory Authority (FINRA) announced that its Board of Governors approved proposed changes to FINRA’s Communications. With the Public Rules, as well as amendments to the Trading Activity Fee for firms with no customers that are engaged solely in proprietary trading activity for their own accounts.



Company News

FX Volatility Helps Goldman Sachs’ Revenues Hit Four Year High – Profit & Loss (free story)
Goldman Sachs is the latest bank to highlight the impact of higher volatility levels in fuelling “significantly higher” revenue from currency and rates trading in Q1.

Citi’s FX Revenue Growth Not Enough to Stem Decline – Profit & Loss (free story)
Citi reports an 11% decline in Q1 from its fixed income trading revenues, which it says is primarily driven by lower spread product revenues, but was “partially offset by growth in rates and currencies”.

First Digital Currency Broker-Dealer Launches – CNBC
Genesis Trading, which claims to be the first broker-dealer specializing in digital currencies, launched Thursday amid reports of increasing institutional interest in bitcoin.

SGX, Bank of China to Extend RMB Collaboration – Channel News Asia
The Singapore Exchange, Bank of China and BOC International are extending their collaboration on renminbi (RMB) initiatives and joint marketing initiatives.

Flax Appointed New FX Head at BNP Paribas in New York – Profit & Loss (free story)
Catherine Flax has been appointed as head of FX/local markets at BNP Paribas in New York, in addition to her current role as managing director and head of commodity derivatives at the bank.

Tradition Appoints Former ISDA CEO to TraditionSEF Board – Profit & Loss (free story)
Robert Pickel, the former chief executive of the International Swaps and Derivatives Association (ISDA), has joined Tradition as non-executive director to the board of TraditionSEF, the swap execution facility operated by the interdealer broker in the US.



Market Savvy  

The Morning Track – Wash, Rinse, Repeat
Anyone chasing trends will be a bit frustrated today except in fixed income. The ECB hold the course on QE drives German average bond yields to 0%. That is great for Germany but not clearly working for Greece and the Greek default jitters are the main story overnight with the Australian jobs surprise a sideshow for carry players. The FT reported: “Greek officials have made an informal approach to the IMF to delay repayments of loans, but were told that no rescheduling was possible.” William Hill stopped taking bets on the Grexit. All that and markets are in consolidation mode as they wash out stale longs, rinse away risk correlations and then repeat the game. The EUR is the best example as it drops to 1.05 pre ECB bounces back towards 1.0750 in Asia and then revisits 1.0650. This isn’t a trend but a chop fest.



Press Releases

Mercer Enhances FX Trading Analytics Capability Through Agreement with Abel Noser Solutions
To support its European and Middle Eastern clients in monitoring the activities of their custodian banks, Mercer has entered into an agreement with Abel Noser Solutions, to offer its Foreign Exchange Trade Cost Analysis (FX TCA) solution.



Industry Events