Top Headlines
China Burns Hedge Funds as $562 Million Yuan Bet Turns Worthless – Bloomberg
The battle over the fate of China’s currency is starting to get bloody for the bears.
Bank of Japan Scrambles to Find Positives in Negative Rates – Reuters
Bank of Japan officials have been scurrying to commercial banks to explain and apologize for its surprise adoption of negative interest rates in January, while Prime Minister Shinzo Abe has distanced himself from a decision that is proving unpopular with the public.
China’s PBOC Flags Stimulus Restraint but Says Policy Should be Flexible – Reuters
China’s central bank won’t resort to excessive stimulus to bolster growth but will keep a flexible stance in the event of an economic shock – domestic or global, Governor Zhou Xiaochuan said while reiterating the authority’s prudent monetary policy.
- China Has Necessary Tools to Manage Flexible FX Rate Risks: IMF Official – Reuters
- Yuan’s Jump Is Sign China’s Policy Succeeds – Wall Street Journal (subscription)
Russia to Propose 7-Year Prison Sentences for Digital Currency Issuers – CoinDesk
The Russian Finance Ministry has reportedly tightened its proposed penalties for the issuance of so-called money surrogates including digital currencies.
FX Spot Head Leaves Citi – Profit & Loss
Richard Bibbey has left Citi, where was head of G10 spot and electronic FX trading.
Aussie Rally Defies China Data as Hedge Funds Raise Bullish Bets – Bloomberg
Australia’s dollar advanced to an eight-month high versus the greenback as a rally in global equities emboldened investment in higher-yielding assets.
The U.S. bond market is starting to think about something it hasn’t considered for months: rate increases.
Survey Finds Increased Bank Bonuses for Junior Staff – Profit & Loss
A new survey of front office bankers finds that junior staff have benefited from increased bonuses at the expense of more senior management.
Regulatory News
Brazil Cenbank Not Considering Reducing FX Swaps Stock – Reuters
The Brazilian central bank is not considering reducing its currency swaps stock at the moment despite a sharp appreciation of the local currency, a senior member of the government’s economic team told Reuters on Friday.
Venezuela Revamps Currency Exchange System – VenezuelaAnalysis
Venezuela announced Wednesday key changes to the country’s currency exchange regime designed to streamline access to dollars for production and essential imports as well as combat inflation.
Banks Forced to Rely on Whisper Network After Register Shrinks – eFinancialNews (subscription)
Banks are being forced to develop their own informal system of background checks on job applicants since the UK authorities have stopped maintaining a register of people approved to do a wide range of jobs in finance.
Company News
Pound’s Swings Complicate Life for Small UK Firms Before EU Vote – Reuters
UK referendum was not a surprise, nor was the timing, but the swings in Sterling ahead of the vote are.
More Cuts at BAML? – Profit & Loss
Bank of America Merrill Lynch has become the latest bank to make cuts to its trading business, market sources suggest.
CalPERS Names Marlene Timberlake D’Adamo as Chief Compliance Officer – CalPERS
The California Public Employees’ Retirement System (CalPERS) announced the selection of Marlene Timberlake D’Adamo as Chief Compliance Officer (CCO). She assumes her new role on April 11.
Why the Strong Dollar Won’t Pack the Same Profits Punch – Wall Street Journal (subscription)
The euro’s gyrations versus the dollar after last week’s ECB meeting mask a general strengthening that will help profits at U.S. multinationals.
Market Savvy
Ignored for Years, a Radical Economic Theory Is Gaining Converts – Bloomberg
In an American election season that’s turned into a bonfire of the orthodoxies, one taboo survives pretty much intact: Deficits are dangerous. A school of dissident economists wants to toss that one onto the flames, too.
Investors and analysts who bet on further weakness from the euro have been repeatedly disappointed over the last year.
- Forecasts Torn Up After Euro’s Whipsaw Run – Financial Times (subscription)
- The European Central Bank Has Lost the Plot on Inflation – Financial Times (subscription)
Osborne Looks to Carney to Do the Heavy Economic Lifting – Bloomberg
Back in 2010, when U.K. Chancellor of the Exchequer George Osborne was kicking off his fiscal squeeze, he rarely tired of saying how his “credible” plans gave the Bank of England flexibility on policy. Six years later and the story hasn’t changed much.
Press Releases
CME Group Announces Record FX Futures and Options Volume
CME Group today announced it reached a trading volume record for total FX futures and options yesterday, March 10, of 2,517,334 contracts, surpassing the previous record of 2,371,202 by 6 % set on May 6, 2010. FX futures also set a new record of 2,350,478, surpassing the previous record of 2,208,417 on May 6, 2010.
SIX Swiss Exchange and SIX Structured Products Exchange Data February 2016
5,100,692 transactions were made on SIX Swiss Exchange and SIX Structured Products Exchange in February, marking an increase of 10.0% from last month’s figure.
Industry Events
FIA: Boca 2016, 15-18 March in Boca Raton, FL
FOW: Derivatives World, 12-13 April in Hong Kong
FX Week FX Invest North America, 12 April in Boston, MA
Profit & Loss Forex Network London, 14 April in London, UK
Profit & Loss Latin America, 20 April in Mexico City
ACI World Congress 2016 – Indonesia, 26-30 April, Jakarta
Eurofinance: Asia Treasury, 18-20 May in Singapore
Profit & Loss Forex Network New York, 26 May, New York City
FIA: IDX 2016, 7-8 June in London, England
Profit & Loss Scandinavia, TBD September, Copenhagen
Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL
Sibos 2016, 26-29 September in Geneva, Switzerland
FIA: Expo, 18-20 October in Chicago, IL