Top Headlines

Central Bank Cryptocurrencies Pose Stability Risk, Says BIS – Financial Times (subscription)

Central bankers risk endangering the stability of the global financial system by jumping on the bitcoin bandwagon and launching their own digital currencies in an effort to destroy competition from rivals from outside the official sphere, the Bank for International Settlements has warned.

US Dollar Weakens as Investors Seek Second Opinion on Inflation – Wall Street Journal (subscription)

The US dollar edged lower as investors sought confirmation about the pace of inflation after last week’s weaker-than expected report on wage growth.

Sterling Struggles to Rise Above $1.39 as Brexit Nerves Grow – Reuters

Sterling climbed and held near the day’s highs as risk appetite prompted investors to buy the currency but concerns over progress in Brexit negotiations limited the gains.

Yen Clings to Gains as Scandal Clouds Abe’s Outlook – Reuters

The yen held firm against the dollar as a political scandal engulfing Japanese Prime Minister Shinzo Abe’s government raised doubts about his ability to continue to pursue his economic policies, including monetary easing.

‘No Deal’ Brexit Could Cost UK, EU Companies 58 Billion Pounds: Report – Reuters

Companies in Britain and the European Union face an extra 58 billion pounds ($80 billion) in annual costs if there is a no-deal Brexit, with Britain’s vast financial sector set to be the worst-hit industry, according to a report.

Brexit: Banks Take the ‘No’ Out of Novations – Risk (subscription)

Swaps clauses stop end-users blocking counterparty switch, making it easier to move trades to EU affiliates.

With UK Banks Hit by Scandal, Regulator Demands Ethics Change – Bloomberg

With British banks mired in scandal a decade after the financial crisis, the country’s markets regulator started a new chapter in the debate over corporate culture, moving beyond financial misconduct and focusing on how bankers act outside the boardroom.

Spot Crypto Market Plays by Its Own Rules – Markets Media

Buy-side firms seeking to enter the cryptocurrency spot market should not confuse the nascent market with other more familiar financial markets despite common terminology, according to regulators and market participants.

Regulatory News

EU Body Strikes Back at Cryptocurrency Regulation – Financial Times (subscription)

EBA suggests preventing banks from holding digital coins rather than regulating asset.

On 10th Anniversary of Bear Stearns’ Near Collapse, Senate Pushes to Rewrite Financial Regulation – CNBC

A bill with strong bipartisan support would loosen regulation for big and small banks.

China to Merge Regulators, Create New Ministries in Biggest Overhaul in Years – Reuters

China is merging its banking and insurance regulators, giving new powers to policymaking bodies such as the central bank and creating new ministries in the biggest government shake-up in years.

Company News

BarclayHedge Confirms Bad February for Hedge Funds – Profit & Loss

Hedge Funds lost 1.53% in February according to the Barclay Hedge Fund Index compiled by BarclayHedge, although putting a good spin on it the firm says this compares to a 3.69% decline in the S&P 500 Total Return Index.

Another Exchange Jumps on Bitcoin Bandwagon – Wall Street Journal (subscription)

Startup trueEX says it plans to offer derivatives on bitcoin.

Cryptocurrency Scammers Run Off with More Than $2 Million After Ditching Their Investors – CNBC

Scammers appear to have made off with more than $2 million in cryptocurrency after carrying out an apparent fake initial coin offering (ICO), and the individuals linked to the incident may be connected to another recent theft.

Market Savvy

Asian Currencies Subdued on Caution Ahead of US Inflation Data – Reuters

Most Asian currencies traded in a tight range ahead of crucial inflation data from the United States due later in the day.

C$ Pulls Back from Recent Rally as Oil Prices Fall – Reuters

The Canadian dollar weakened modestly against the greenback, consolidating gains from last week’s rally and as oil prices slipped on expectations that US output will rise this year.

Yuan to Still Take Backseat to Yen by 2027: Morgan Stanley – Bloomberg

While China’s financial markets are likely to develop significantly over the coming decade, use of the nation’s currency in the global financial system will continue to lag behind, according to Morgan Stanley.