Top Headlines

CFTC Fines JP Morgan Over ISDAFix – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has issued an Order filing and settling charges against JP Morgan for attempted manipulation of the ISDAFix benchmark and requiring the bank to pay a $65 million civil monetary penalty.

Dollar Falls vs Yen After US Threatens Further Tariffs on China – Reuters

The dollar fell against the Japanese yen and Swiss franc after US President Donald Trump’s threats of more tariffs on China heightened fears that an escalating trade dispute could damage global growth.

How to Play a US-China Trade War? Investors Map Out Tactics – Bloomberg

Buying yen proves a favorite thanks to Japan’s net credit position.

Sterling Falls to Seven-Month Lows on Trade, Brexit Concerns – Reuters

Sterling fell to a fresh 2018 low, as concerns about an escalation in the trade dispute between the world’s two biggest economies weighed on risk sentiment.

Renminbi Hits Five-Month Low as Dollar Gains, Trade Tension Mounts – Financial Times (subscription)

The Chinese currency slipped to a five-month low as the dollar strengthened and Chinese equities slumped after the US ratcheted up pressure on Beijing over trade.

Emerging-Markets Currencies Stung by Trade Concerns – Financial Times (subscription)

Emerging-markets currencies are feeling the heat from the latest wave of nerves about a global trade war that has hit stock markets and boosted the appeal of haven assets.

Investors Withdraw Money from Hedge Funds in April – Profit & Loss

With what appears to be immaculate timing, hedge fund investors turned cautious in April 2018 and redeemed $1.9 billion in assets from the industry, just in time for it to produce positive returns in both April and May.

Regulatory News

BoE Paper: Leverage Ratio Disincentivises Client Clearing – Global Capital (subscription)

A new Bank of England working paper argues that leverage ratio for derivatives had a “disincentivising effect” on client clearing, confirming the views of many industry participants.

Tighter HFT Capital Rules Will Only Harm Eurozone Market Trading – Financial Times (subscription)

New standards may trigger exodus of firms from supporting prices in futures contracts.

Mifid II/FCA: Armed and Dangerous – Financial Times (subscription)

Reforms to stop burden of research costs have skewed ecosystem in a different way.

Crypto News

Regulated Crypto Custody Is (Almost) Here. It’s a Game Changer – Bloomberg

Service could open market to bigger investors, boosting prices.

An Ethereum Futures Future? US Commodities Giants Lie in Wait After SEC Surprise – Forbes

Cboe and CME are exploring the ethereum cryptocurrency with a $49.6B market value in a number of different ways.

Square Shares Jump to a Record After Company Gets Regulatory Green Light for Cryptocurrency Trading in New York – CNBC

Regulators grant payment company Square a license allowing New Yorkers to trade cryptocurrency on the rapidly growing Cash app.

Pantera’s 19-Year-Old Whiz Kid Hired by Coinbase Founder’s Fund – Bloomberg

In the cryptocurrency world, if you haven’t made partner before you turn 20, what are you doing with your life?

Company News

Tse Joins Citi – Profit & Loss

Calvin Tse has joined Citi as head of the banks’ North American FX strategy.

Chesterman Joins Stater in COO Role – Profit & Loss

Mark Chesterman has joined Stater Global Markets in a newly created COO role.

Wolf Leaves FlexTrade – Profit & Loss

Bruce Wolf has left his role as head of FX business development at FlexTrade.

Market Savvy

South Africa’s Rand Caught Up in EM Currency Sell-Off – Financial Times (subscription)

South Africa’s rand endured a torrid time in the US session, leaving the currency nursing a two per cent loss on the day as rising trade tensions triggered a resumption of the emerging market sell-off.

Argentina Peso Firms, Stocks Fall After Central Bank Action – Reuters

Argentina’s peso currency snapped its slide as the central bank said it would hike reserve requirements for banks, a move that also sent bank shares tumbling as the country’s stocks had their worst performance since December 2014.

Crowded Trade Watch: No-One Likes the Swiss Franc – Financial Times (subscription)

Safety (the Swiss franc) and economic tedium (a flatter yield curve) are the trades falling out of favour.