Top Headlines

Chinese Securities Regulator Is Out, but Little May Change – The New York Times (subscription)

As China’s economic woes intensified, the nation’s top securities regulator appeared to have the support of the Communist Party leadership, even when his efforts to stabilize the stock markets faltered and in some cases made matters worse. Just weeks ago, he issued a lengthy defense of his record and the securities agency aggressively denied reports he had offered to resign.

Pound Traders Brace for Months of Swings as EU Vote Called – Bloomberg

Pound traders are expecting little respite from the currency’s volatility after U.K. Prime Minister David Cameron called a referendum on the nation’s European Union membership for June 23.

China’s Central Bank Redacts Sensitive Foreign Exchange Data – Financial Times (subscription)

China’s central bank has removed a closely watched foreign exchange data series from its website in a move likely to provoke suspicion that the government is attempting to conceal the extent of capital outflow.

Wildest Currency Swings Since 2011 Curtail Options Strategies – Bloomberg

The highest currency-market volatility in more than four years is depriving investors of a cheap way to protect against risks in financial markets — including Britain’s referendum on its membership of the European Union.

FX Algo Trends: Trading in a Multi-Asset Class World – Finance Magnates

The more FX markets move to electronic trading, the more algos are deployed. And while any discussions of algorithmic trading continue to be dominated by latency, at this point speed has become mostly commoditized.

Banks Keep Cutting Currency Traders as Volatility No Job Saver – Bloomberg

As banks around the world cut sales and trading jobs in an effort to reduce costs, the bloodletting in foreign exchange is proving to be among the deepest and most painful.

Egypt to ‘Think’ About Floating Pound When FX Reserves Hit $25bn –Bloomberg

Egypt’s central bank will consider floating the country’s currency when foreign reserves are almost double their current level, the bank’s governor said in a televised interview.

Regulatory News

Esma Pledges to Ease Reporting Burden on Trading Firms – eFinancialNews
The European Securities and Markets Authority has asked its Market Data Standing Committee to consider how to reduce the burden on the finance industry in the wake of a swathe of different reporting requirements, contained in legislation such as the Markets in Financial Instruments Directive, the Securities Transaction Financing Regulation and the European Market Infrastructure Regulation.

Egypt Signs $500 mln Facility Agreement with Afreximbank to Ease FX Shortage – Reuters

The African Export-Import Bank (Afreximbank) has agreed a $500 million facility with the Central Bank of Egypt (CBE) to help Egyptian importers through a foreign currency crisis.

Company News

XTX Builds Further – Profit & Loss

XTX Markets is adding further to its roster of talent with the hire of Jigar Patel, who will join the company as part of its business development team, heading up the e-commodities business.

Deere to Cut Profit Forecasts on Strong Dollar – Financial Times (subscription)

Deere shares fell sharply after the largest maker of tractors and other agricultural equipment cut its sales and profit forecast for this year.

Market Savvy 

Sterling Hit by ‘Brexit’ Worries, Others Major Currencies Calm – Reuters

Sterling fell in Asia early on Monday as concern grew that Britain would quit the European Union, after London Mayor Boris Johnson threw his weight behind the exit campaign. The dollar, euro and yen were little changed.

Bet Against Dollar at Own Peril, Managers of $365 Billion Say – Bloomberg

The dollar’s weak start to 2016 is showing signs of a turnaround as doubts about the economic outlook fade, according to U.S. Bank Wealth Management and Pioneer Investments.

Yuan Forwards Rise on Bets PBoC to Support Currency Before G-20 –Bloomberg

Yuan forwards rose the most in a week on speculation Chinese policy makers will support the currency before a meeting of the Group of 20 central bankers and finance ministers. Government bonds fell.

Press Release

EBS BroklerTec Sees Further Growth in eFix Matching

EBS BrokerTec, ICAP’s market-leading electronic foreign exchange (FX) and fixed income business, announces today that it has launched 12 new daily WMR fixes through the eFix Matching solution, with plans to provide electronic execution for all 24 hourly WMR fixes by the end of the first quarter 2016.

Statement by Christine Lagarde on her Second Term as IMF Managing Director

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today: “I am delighted to be given the opportunity to lead the IMF as Managing Director for a second term of five years, and I greatly appreciate the continued trust and support of the Fund’s Executive Board and our 188 member countries.

Industry Events