Top Headlines 

China Changes the Way It Manages Yuan After Currency’s Jump – Bloomberg

China’s central bank has made a change to the regime used to manage the yuan, effectively removing a component used by banks to calculate their submissions to the currency’s daily reference rate, according to people familiar with the matter. 

Sterling Snaps Three-Day Rally but Outlook Improves – Reuters

Sterling snapped a three-day rising streak and weakened as investors took profits after a rally although expectations that Brexit talks will have a positive outcome continued to underpin the British currency.

Euro Bulls Unbowed by Resilience of Dollar – Financial Times (subscription)

Buying single currency remains favoured forex trade despite risk of early year correction.

Yen Climbs as BoJ’s Move Fuels Tightening Speculation – Reuters

The yen reached a five-day high, after the Bank of Japan trimmed its purchases of long-dated government bonds in market operations, stoking speculation the central bank could start to wind down its huge stimulus policy this year.

Here’s a Sign Traders Are Getting a Little Nervous About the Italian Election – Bloomberg

Two-month euro puts have become more expensive than calls for the first time since August as investors begin to hedge against risks surrounding Italian parliamentary elections on March 4.

Former RBS Trader Banned, Fined, By FCA – Profit & Loss

The UK’s Financial Conduct Authority (FCA) has fined former Royal Bank of Scotland (RBS) interest rate derivatives trader, Neil Danziger, £250,000 and banned him from performing any function in relation to any regulated financial activity.

Two Big Futures Exchanges Call for Post-Brexit Rethink on Mifid – Financial Times (subscription)

Two of Europe’s leading derivatives exchanges have called for a rethink of the EU’s new rules for futures exchanges, arguing Brexit will cause a breach between Europe’s largest financial market and the rest of the continent.

Global Derivatives Industry Rolls Out Brexit Back-Up Plan – Reuters

The global derivatives industry has begun work on fundamental changes to cope with a “hard” Brexit by allowing any disputes involving trillions of euros of swaps contracts to be resolved under French and Irish law.

Cryptocurrency May Be Getting Quietly Channelled to North Korea University: Report – Reuters

A cybersecurity company said it has found software that appears to install code for mining cryptocurrency and sends any mined coins to a server at a North Korean university, the latest sign that North Korea may be searching for new ways to infuse its economy with cash.

Regulatory News

How Much of a Systemic Risk Is Clearing? – Financial Times (subscription)

Critics of central counterparties claim the CCP structure is unstable.

Fund Managers Say US Regulator Told Them to Suspend Bitcoin Bids – Reuters

Two US companies withdrew proposals to launch bitcoin-based exchange-traded funds pending before the Securities and Exchange Commission (SEC), citing ongoing concerns by the regulatory agency, filings showed.

Trump Close to Decision on Fed Vice Chair Pick: Administration Official – Reuters

US President Donald Trump is close to making a decision on who to nominate as vice chair of the Federal Reserve, an administration official said.

Company News

Year-End Volumes Showing MoM Dip – Profit & Loss

Thomson Reuters (TR) and Singapore Exchange (SGX) have today released year-end FX trading volumes, which each show year-end dips from the previous month.

LCH Reports Record Year as FX Stands Out – Profit & Loss

Clearing house LCH has announced record volumes across multiple clearing services in 2017, with FX leading the way, registering the greatest pace of growth across established products.

GAIN Capital Continues Rollout of Bitcoin Trading, Plans Ethereum and Others – Finance Magnates

The company’s Singapore and Australian subsidiaries are next to begin offering the hot asset class.

Compliance Rethink Urged as Banks Face Up to Mifid II – Euromoney

The demands of post-crisis regulation mean that banks need to take a more flexible approach to the compliance function.

Market Savvy

Bitcoin Slides as Website Drops South Korea Prices from Virtual Currency Rates – Reuters

Bitcoin sank after website CoinMarketCap removed prices from South Korean exchanges from its calculations of digital currency rates without any warning, resulting in a steep drop in all virtual coins they track.

Angola Plans Currency Auction Tuesday as It Ends Peg – Bloomberg

Angola’s central bank will hold an auction to sell foreign currency to commercial banks, its first since saying it will abandon a dollar peg, according to three people familiar with knowledge of the matter.