Top Headlines

BOE No-Deal Planning Won’t Stop Market Volatility, Cunliffe Says – Bloomberg

The Bank of England’s efforts to ensure financial stability in the case of a no-deal Brexit won’t prevent market volatility, according to policy maker Jon Cunliffe.

Yet Another Example of How US Authorities Do Not Have an Understanding of How the FX Market Works (opinion) – Profit & Loss

Scepticism is apparent in Judge Breyer’s order dismissing the Bogucki case when he states, “A hypothetical is a thin reed indeed on which to hang criminal charges,” but that seems to be exactly what the US government is relying upon in most of these cases. 

Why Macro Hedge Funds Keep Praying for a Return of Volatility – Financial Times

Hedge funds betting on big moves in global currency, bond and stock markets have not enjoyed the best of times of late.

There’s Life for Bond Traders Amid the Carnage – Bloomberg

The fixed income business may be dying in New York and London, but it’s thriving in Asia.

Regulatory News

Brexit Relief Aids Singapore on EU Swaps Trading Equivalence – (subscription)

The European Commission’s long-awaited equivalence decision on Singapore’s swaps trading venues could come within the next few weeks, helping to maintain a global liquidity pool that includes Asian and European players, according to three people familiar with the situation.

Regulatory Bodies Issue Guidance on Initial Margin Rules as Industry Continues to Call for Further Amendments – The Trade

Industry bodies including SIFMA, ISDA, ABA and GFMA criticise final initial margin thresholds, recommending raise to EUR/USD 100 billion.

Regulators Move to Ease Post-Crisis Oversight of Wall Street – The New York Times

Federal regulators moved on Wednesday to ease oversight of the country’s largest banks and other financial firms, continuing a push by the Trump administration to reverse rules that were put in place following the 2008 financial crisis.

Drop Margin on Swaps Leaving Libor, Basel Says – (subscription)

Joined by Iosco, Basel says moves to Libor successors should not be saddled with margin requirements.

Volcker 2.0 to Face Do-Over After Wall Street Complaints – Bloomberg

US regulators are poised to scrap their proposal for revising Volcker Rule restrictions on banks’ trading in favor of a newer version as they respond to a misstep that drew fire from Wall Street lobbyists, according to people familiar with the effort.

Crypto News

Blockchain Start-Up Setl Appoints Administrators – Financial Times

Setl, the blockchain firm founded by Chi-X founder Peter Randall has appointed administrators, according to documents filed in Britain’s High Court of Justice on 1 March.

Ripple CEO Brad Garlinghouse on JPM Coin: Other Banks Won’t Use It – CoinDesk

Brad Garlinghouse, the CEO of San Francisco blockchain startup Ripple, gave JP Morgan Chase qualified praise Wednesday for creating its own stablecoin, before dismissing the product’s likelihood of adoption by other banks and questioning its usefulness.

Why True Digital’s New CEO Left the Hedge Fund World for Crypto – The Block

The path from Wall Street into crypto – and indeed vice-versa – has been well-trodden by now. But what is it these traditional financiers are looking for? What is it about this alternative space that draws them?

Digital Securities: The Exchange Revolution of the Next Decade – Tabb Forum

Digital tokenization enables illiquid assets to serve as collateral for securities, offering a powerful means of democratizing investments. Broad adoption seems inevitable, and today’s exchanges must prepare for tomorrow’s assets.

Company News

ParFX: More of the Same – Profit & Loss

In 2010 the FX Pure initiative was launched, which recognised that there were participants in the market who were getting a systematic advantage by using platforms that allowed them to get an advantage just by being fast. There were a number of other factors that formed an important part of the project: trading and pricing transparency and creating a trading platform with fairness and equality at its core. In 2013, the FX Pure initiative resulted in the launch of ParFX.

FX Volumes Drop Sharply In February: Platforms – Profit & Loss

The three primary FX venues to report average daily volume data have reinforced data from a second group that activity in the market was low in February.

Eurex Explores “Speed Bump” Expansion – Global Investor (subscription)

Eurex will consider rolling out its passive liquidity protection scheme to all options and FX futures six months after June go-live.

MahiFX to Exit Retail FX Space – Profit & Loss

The move signals a strategic change as the company pivots away from providing retail FX brokerage services towards what it says is “core competency as a B2B technology provider to banks and brokers”. 

INTL FCStone Subsidiary to Expand Access to FX Platform – Profit & Loss

The Global Payments Division of INTL FCStone’s London based subsidiary has announced plans to roll out its FXePrice platform to its entire network of counterparties.

Cinnober Chief to Step Down Following Nasdaq Takeover – The Trade

Peter Lenardos IS to leave company after six months as chief executive following the closure of Nasdaq’s takeover.

Deutsche Bank Is Making Deep Cuts to 2018 Bonuses – Bloomberg

Deutsche Bank employees learned what bonuses they would receive on Wednesday, with many facing deep cuts and some bankers in New York and London receiving zero payouts, people with knowledge of the decisions said.

Market Savvy

Sterling Below 8-Month Highs as Brexit Talks Drag – Reuters

The pound held below an eight-month high hit last week on Thursday as investors waited for some clarity to emerge out of Brexit negotiations between Britain and the European Union.

Euro Clings to $1.13 as ECB Stimulus Signal Awaited – Reuters

The euro paused just off three-week lows versus the dollar on Thursday’s European Central Bank’s meeting, which many hope will signal fresh stimulus for the economy and inject some life into currencies stuck in trading ranges.

For Clues on the Dollar Watch Beijing, not Washington – Financial Times

Is the multiyear period of US dollar strength over? Not yet. But when the turn does come, it will depend more on China than on the US Federal Reserve.