Top Headlines
British MPs Vote to Seize Control of Brexit – Financial Times
Theresa May on Monday night risked losing control of Brexit after MPs voted by 329 to 302 to seize control of the House of Commons timetable and test support for alternatives to her withdrawal deal.
Banks Ramp Up Plans for ‘Hard Brexit’– Financial Times
JP Morgan has sent new EU employment contracts to more than 200 London-based staff in recent days while Royal Bank of Scotland is gearing up to begin serving clients at its new Dutch entity, as banks intensify preparations for a “hard Brexit”.
US CFTC Agrees on Brexit Fine Tuning, Splits Over Swap Dealer Tweaks – S&P Global Platts
The US Commodity Futures Trading Commission took another step to easing global derivative market uncertainty in light of UK’s exit from the EU by ensuring that certain uncleared swaps would not suddenly face CFTC margin requirements from which they were previously excluded.
Banks Get Break on Hedging – The Wall Street Journal (subscription)
Midsize banks will benefit the most from the revisions because they will be exempt from expensive margin and capital requirements that come with large swap portfolios. The new rules allow banks more flexibility in how they count interest-rate swaps that are intended to hedge the credit risk of loans.
- Statement of Chairman J. Christopher Giancarlo on the Final Rule Regarding De Minimis Exception to the Swap Dealer Definition – Swaps Entered into by Insured Depository Institutions (IDI) in Connection with Loans to Customers – CFTC
- Dissenting Statement of Commissioner Dan M. Berkovitz on De Minimis Exception to the Swap Dealer Definition—Swaps Entered into by Insured Depository Institutions in Connection with Loans to Customers – CFTC
One of the main arguments focuses on the Government’s interpretation of the British Bankers Association rules. According to the defendants, these rules did not prohibit Panel Banks from considering their trading positions; nor was there any evidence that the BBA or anyone else in the industry who had read these rules interpreted them to prohibit this practice at the time of the events in question.
Regulatory News
Unlocking Fixed Income Market Transparency – The Trade
The introduction of the MiFID II regulatory regime has created an array of data issues, compounded by the lack of a consolidated tape for European markets, according to a panel of industry experts
Brexit: LSE Gains Approval for EU Trade Repository – Funds Europe
London Stock Exchange Group has received regulatory approval to operate a trade repository in Amsterdam in case of a no-deal Brexit. The repository will enable LSE to offer trade reporting services in the EU in line with the main capital markets regulations known as Emir and Mifid II.
Crypto News
Bitcoin Critic Warns Against Central Banks Issuing Own Tokens – Bloomberg
Agustin Carstens, general manager at the Bank for International Settlements, once likened Bitcoin to “a bubble, a Ponzi scheme and an environmental disaster.” In a speech on Friday he cited the example of a financial panic, which in a world with a central bank-issued digital currency (CBDC) might lead people to shift money to accounts at the monetary authority from commercial banks, undermining the system.
US a Bigger-Than-Expected Source of Crypto Trades, Firm Says – Bloomberg
US exchanges handle about 29 percent of global Bitcoin trading – much more than previously thought because some unregulated rivals overseas are inflating their volumes, according to estimates from a firm working to create a crypto exchange-traded fund.
Deciphering Americans’ Views on Cryptocurrencies – Federal Reserve Bank of New York
Having witnessed the dramatic rise and fall in the value of cryptocurrencies over the past year, we wanted to learn more about what motivates people to participate in this market.
Crypto Aggregator Says Concerns Over Inaccurate Data Are Valid – Bloomberg
CoinMarketCap.com, one of the biggest aggregators of cryptocurrency market data, said concerns over inaccuracies “are valid” and it will be adding more information to its website to help users make better decisions.
CME’s CEO Explains the Biggest Issue Regulators Have with Bitcoin – Business Insider (subscription)
Terry Duffy, CME Group’s chairman and CEO, says that regulators are more likely to be accepting of cryptocurrencies backed by fiat money.
Nasdaq Looks to Machine Learning for Crypto Surveillance – Global Investor (subscription)
Nasdaq is looking to apply machine learning technology in crypto marketplaces.
Company News
Eurex to Introduce Brexit-Orientated MSCI Derivs – Global Investor (subscription)
Eurex will introduce three derivatives contracts that enable Brexit-orientated trading.
Tradeweb Aims for $5.8bn Valuation in Upcoming IPO – Financial Times
Tradeweb Markets, the US fixed income and derivatives trading venue, is aiming for a valuation of up to $5.8bn as it begins a roadshow to sell investors its initial public offering on Nasdaq.
BAML to Hire 70 Bankers as New Boss Challenges Wall Street Rivals – Financial News (subscription)
After disappointing on its post-crisis ambition to rule investment banking, the Wall Street titan is hiring more staff to achieve a top-three position in league tables.
Cboe Europe Delays Launch of Amsterdam Trading Venue – The Trade
Exchange operator Cboe has postponed the launch of its Amsterdam-based European trading venue in the wake of the EU’s decision to grant the UK an extension on its withdrawal from the European bloc.
Singapore, Australia Fintech Bodies Agree to Collaborate – Regulation Asia
FinTech Australia and the Singapore Fintech Association have agreed to collaborate on fintech initiatives across ASEAN and Australia. The MoU was signed at Money20/20 in Singapore last week.
Market Savvy
Pound Penned in Below $1.32 by Risk of Snap Election, No-Deal Brexit – Reuters
Sterling slipped on Tuesday after the British parliament moved to wrest control of the Brexit process for a day, raising expectations that lawmakers can end an impasse on Britain’s European Union exit, but also the chances of a snap election.
Euro Steadies as Surveys Hint at Economic Recovery – Reuters
The euro steadied on Tuesday after economic surveys showed tentative signs of a recovery in the euro zone economy but warning signs from bond markets continued to unnerve investors.
Turkish Lira Spikes More Than 2% in Course of Seven Minutes – Financial Times
The lira surged more than 2 per cent in a matter of minutes early in the London morning on Tuesday, the latest abrupt move in a jolt of volatility that has taken hold of Turkey’s currency.
China’s Efforts to Make Yuan Rate More Transparent Gain Momentum – Bloomberg
There’s growing evidence that China’s efforts to make the yuan more market-oriented are gathering momentum. The yuan’s daily reference rate needs to be more transparent and rule-based, and the market should be allowed to play a bigger role setting the price, said Pan Gongsheng, head of the State Administration of Foreign Exchange.