Top Headlines

‘Cartel’ Traders Weigh Surrender to Face US Rigging Charges – Bloomberg

Some of the UK currency traders whose online chats led to guilty pleas by four of the world’s biggest banks are weighing whether to present themselves to the US to fight charges against them.

Dollar Wavers as Manufacturing Growth Stalls – Wall Street Journal (subscription)

The dollar stalled after data indicated that growth in US factory sector cooled in March.

Hurrah, Dollars Are Now Flowing (Almost) Normally Again – Wall Street Journal (subscription)

A global shortage of dollars that distorted the money markets for the past two years is easing, even as the Federal Reserve is trying to tighten monetary policy.

Sterling Slips on Brexit, BoE Policy Uncertainty – Reuters

Sterling slipped against the dollar, euro and yen, kept under pressure by uncertainty over the terms of Britain’s exit from the European Union and by doubts over how soon the Bank of England will start raising interest rates.

Yen Hits Strongest Level Since Mid-November – Financial Times (subscription)

The Japanese currency has now recouped 60 per cent of the losses incurred since Donald Trump became US President, with analysts pinning the move on increased scepticism on a global reflation trade.

China’s Currency Takes a Twist Ahead of Trump-Xi Meeting – Wall Street Journal (subscription)

While the yuan is down against a large basket of currencies this year, it has gained versus the dollar.

Rand Falls as Much as 1.9 Per Cent – Financial Times (subscription)

South Africa’s rand slid as much as 1.9 per cent in early European trading as a cut to the country’s credit rating by S&P weighed on the currency.

Hedge Fund Bulls Breathe New Life Into World’s Hottest Currency – Bloomberg

The world’s best currency rally this year is finding fresh support from hedge funds.

Icelandic PM Pushes Back After Finance Minister Calls for Currency Peg – Financial Times (subscription)

The prime minister of the Nordic nation has pushed back after his finance minister (and cousin) told the FT that it will almost certainly need to peg the krona to another currency after it lifted capital controls last month.

This Volatility Warning Has a Different Ring to It Today – Wall Street Journal (subscription)

Extreme volatility hasn’t played out like James Dimon predicted a year ago, but low volatility is creating a whole bunch of new concerns.

Will 2017 Be the Year that Blockchain Becomes Real? – Profit & Loss (subscription)

Part of the challenge regarding the adoption of distributed ledger technology within the financial services industry has been figuring out where the most effective place to implement it is.

Regulatory News

SEC Pick Communicated with Thiel, Mercer Before Nomination – Bloomberg

Jay Clayton, the deals lawyer nominated to lead the US Securities and Exchange Commission, said he had “substantive” communications with several wealthy backers of then-President-elect Donald Trump before he was offered the job in January.

Busch to Head New CFTC Market Intelligence Unit – Profit & Loss

Andrew Busch has been named as the first ever Chief Market Intelligence Officer (CMIO) of the US Commodity Futures Trading Commission (CFTC).

Dodd-Frank Overhaul Vote Unlikely Before Summer, Lawmaker Says – Wall Street Journal (subscription)

The House won’t vote until this summer at the earliest on changes to the 2010 Dodd-Frank financial-overhaul law, a senior Republican said.

Prop Trading to Return Under Trump? – The Market Mogul

Assessing the probability of a specific part of Dodd-Frank being reversed is not particularly easy, so it is important to look at what was actually said by Trump and his team.

Regulatory Blitz Weakening Model Risk Management, Say Banks – Risk (subscription)

Smaller banks’ modelling practices under growing scrutiny, but ability to comply is stretched.

ESMA Scales Back Best Execution Reporting Plans for 2018 – The Trade

Best execution reporting under MiFID II has been scaled back for the first year of implementation, as investment firms may not have access to “full and granular data”.

Company News

Citadel Securities Taps Former Goldman Trader – Profit & Loss

Citadel Securities has hired Evran Ozkul, a former trader at Goldman Sachs, as an e-FX trader in New York.

ICE Rule Change Will See Members Post More Cash – Risk (subscription)

Changes pinned on CCP’s lack of access to Fed deposit account.

Brexit or Not, Goldman Sachs Expanded in London Last Year – eFinancial Careers

Goldman Sachs might be about to cut staff in London because of Brexit, but last year it was still adding staff in the City and increasing their pay.

Trading Technologies Extends Futures Trading Platform in London – The Trade

Trading Technologies has extended access to its futures trading platform in Europe through a London-based data centre connection.

Market Savvy

Australian Dollar Hits Three-Week Low as RBA Backs Mortgage Crackdown – Financial Times (subscription)

The Australian dollar fell to a three-week low after the country’s central bank used its April policy meeting to back recent steps by regulators to crack down on risky lending practices.

Mexico Stocks Up as Airport Operators Soar, Real Gains – Reuters

Mexican stocks gained, helped by gains in shares of airport operators that have been boosted by bets that a weak peso will keep tourists flooding into Latin America’s No. 2 economy this year.

CEE: FX Ease, Bonds Firm on Weaker Data, Crown Positions Concern – Reuters

The crown, the zloty and the forint eased in tandem by about 0.1 percent against the euro.