Top Headlines

Brexit Agreement Reached to Bolster London Derivatives Clearing – Bloomberg

The Bank of England and European Union regulators have agreed to cooperate on oversight of clearinghouses, in the latest move by authorities to prevent problems stemming from a no-deal Brexit scenario. The deal will help business continue at the LSE, clearinghouses run by the London Metal Exchange and Intercontinental Exchange, as well as securities depositories based in the UK.

The Difference in Pay at US and European Banks – Financial News (subscription)

European investment banks in the City of London are facing tough conversations with their employees around bonuses, as the gap in pay between them and their US-based rivals is widening.

RBC Ordered to Pay £1.2m to London Whistleblower – Financial News (subscription)

Former FX trader sued the Canadian bank for £13m, claiming he had been fired in 2016 after raising concerns about a box-ticking compliance culture.

CME, EBS Volumes Decline in January – Profit & Loss

Although EBS volumes rose month-on-month, average daily volume data for CME Group weakened in January from the year before.

Regulatory News

UK Finance Chiefs Give Downbeat Verdict on Brexit – Financial News (subscription)

Four-fifths of chief financial officers at UK companies say the country will be worse off after leaving the EU, in the latest gloomy assessment of the country’s post-Brexit prospects.

Buy Side Do Not Want SEF Benefits to Fall Away – Global Investor (subscription)

The buy side will not want to lose pricing benefits under the current swaps execution facilities system, an expert says.

SOFR, So Bad: Liquidity Lags Transition Ambitions – (subscription)

Sometimes timing is everything. US derivatives dealers are moving inexorably towards a post-Libor world but, some argue, not fast enough, affecting the industry’s preparations for the day the disgraced benchmark ceases to exist.

US Regulator Reports Record Surge in Trade Data – Financial Times

The US market watchdog chewed through record amounts of data last year, amid a surge in volatility and the steady rise of automated trading.

What to Expect from the SEC in 2019 – Tabb Forum

Digital assets and cybersecurity continue to dominate the headlines, but the SEC consistently delivers the message that traditional market risks, such as fraud and liquidity management, remain at the forefront.

FCA Orders More Fund Disclosure from Asset Managers – Financial Times

UK asset managers will have to provide investors with more information about how their funds perform under new rules introduced by the markets regulator.

Crypto News

Crypto Exchange Kraken Seals Largest Deal to Date with Swoop for UK Rival – Financial Times

Kraken, the US cryptocurrency exchange, has made its largest acquisition to date, pushing into futures trading with the purchase of London-based Crypto Facilities.

Crypto CEO Dies Holding Only Passwords That Can Unlock Millions in Customer Coins – Bloomberg

Digital asset exchange Quadriga CX has a $200 million problem with no obvious solution – just the latest cautionary tale in the unregulated world of cryptocurrencies.

Bitcoin Technical Indicators Suggest a Retest of December Low – Bloomberg

After five consecutive weekly price declines, technical indicators suggest the outlook isn’t too bright for Bitcoin.

US SEC Seeking Big Data Tool for Major Blockchains – CoinDesk

The US Securities and Exchange Commission is seeking a tool to provide a Big Data view across major blockchains.

Company News

Here’s What Happens When a Hedge Fund’s Star Walks Away – Bloomberg

Andrew Fredman hit the hedge fund lottery. For a decade and a half, he made a fortune as the investment brains behind Fir Tree Capital Management. Then, at 53, he walked away.

CurveGlobal Sees Volumes Surge 350% after MiFID II – The Trade

CurveGlobal set several new records on the platform in January, following a 350% increase in volumes since MiFID II was introduced.

Australia Banks Surge as Misconduct Report Delivers `Soft’ Blow – Bloomberg

Australia bank shares surged after an inquiry into decades of wrongdoing stopped short of demanding a structural overhaul of the scandal-plagued industry or tighter lending rules that threatened to crunch profits.

Market Savvy

Sterling Dives to Two-Week Lows on PMI Scare – Reuters

The British pound fell on Tuesday after a survey showed firms in the dominant services sector reporting job cuts for the first time in six years, while uncertainty over the progress of Brexit negotiations also weighed on the currency.

Dollar Clings to Gains Before State of Union Address, Aussie Climbs – Reuters

The dollar held on to recent gains on Tuesday ahead of US President Donald Trump’s State of the Union address which investors say could hint at progress in US-China trade talks.

The Dollar Can Only Escape Bad US Policy for So Long – Financial Times

Having the world’s reserve currency has allowed the US to make policy mistakes with near impunity.

Traders Jittery About EM’s Rally Seek Central Bank Guidance – Bloomberg

Just as investors were beginning to ponder if emerging market assets have risen too far, too fast, the spotlight shifts to central banks.