Top Headlines

Danger Lurks for Dollar Bulls in Outcome of Trump-Xi Dinner – Bloomberg

The eyes of the global currency market will be on Saturday’s meeting between US President Donald Trump and Chinese leader Xi Jinping, with some analysts seeing even a modicum of progress toward easing trade tensions as enough to sink the dollar.

Are the Firms Bringing Lawsuits against Banks Justifying Their Move as a Defensive One? (opinion) – Profit & Loss

Although the plaintiffs didn’t join the legal action that took place – and perhaps crucially was settled – previously, they feel they have to now bring one so that their investors don’t ask potentially tricky questions. It’s a kind of reverse “me too” that says, “why not me?”

Brace for More Nasdaq-Like Losses, HKEx CRO Warns – (subscription)

A Hong Kong Exchanges and Clearing executive has called for greater focus on default auction processes in light of the recent losses at Nasdaq Clearing, and warns that growing global instability means it won’t be the last of its kind.

Regulatory News

Financial Firms Have Quietly Prepared for Brexit – The Economist

Four months before Britain is due to quit the EU, financial firms have long ago given up hoping for the best (for most, that Britain would remain after all) and are still not sure they will avoid theworst—a sudden, no-deal Brexit on March 29th 2019. But they have been quietlybracing themselves for it.

FCA to Curb Regulatory Arbitrage Risk Post-Brexit – Global Investor (subscription)

Different rules could apply to the same financial instrument in the UK and EU after Brexit, the FCA says.

Libor: Banks Don’t Want to be Calculation Agents – Practice Insight

Despite public opinion – or because of it – major investment banks say they would rather not be tasked with choosing the new rate for legacy contracts

G20 Financial Regulatory Reform Agenda On Track: FSB – Regulation Asia

Basel III and OTC derivatives reforms were on track and broadly achieving their intended goals.

Nasdaq’s Friedman Elected to Sit on New York Federal Reserve Board of Directors – The Trade

Chief executive of Nasdaq Adena Friedman has been elected to sit on the board of directors at the Federal Reserve Bank of New York.

Crypto News 

Which Firms Will Drive the Next Wave of Crypto Adoption? – Profit & Loss

One of the interesting characteristics of the cryptocurrency markets is that trading in these assets has predominantly been driven by retail players, with proprietary trading firms being the first institutional size firms to start getting involved. So which firms are likely to enter the market next, and will theypropel the mainstream adoption of crypto trading?

Fidelity Looking to Expand Digital Asset Trading Beyond Bitcoin and Ether – CoinDesk

Fidelity Investments is looking to expand its institutional crypto asset platform to include trading services for the top five to seven cryptocurrencies by market capitalization.

Bitcoin Becomes a Story of Boom and Bust – Bloomberg

The world’s premier cryptocurrency has bounced back from selloffs before but this time may be different. Regulators are cracking downand investors’ fear of losing everything is overtaking their fear of missingout.

Company News 

Eight Ex-Berenberg Bankers Build $1.7 Billion Asset Manager – Bloomberg

The company focuses on quantitative investment strategies for the hedging of currency risks, so-called currency overlay.

Blue CrestSeeks Direct Membership at LCH’s SwapClear – (subscription)

BlueCrest Capital Management is pursuing direct membership at LCH’s interest rate swap clearinghouse SwapClear as its first buy-side member.

Tradeweb Expands Refinitiv Data Redistribution Agreement – The Trade

Tradeweb has announced it is extending its market data redistribution agreement with Refinitiv to include new datasets.

CME Chief’s Push to Shrink Board Rejected – Crain’s Chicago Business

CEO Duffy says he knew the “hurdles were extremely high” to shrinking the 21-member board. Some shareholders questioned whether the $10 million payment was enough.

Avelacom Adds Tokyo Connection – Profit & Loss

Avelacom has launched a new point of presence in Equinix’s Tokyo (TY3) International Business Exchange data centre, providing trading firms with faster and more reliable connectivity between TY3 and Equinix’s London (LD4/5) data centre facilities.

Scott Becomes Head of e-FX at ANZ – FX Week(subscription)

Paul Scott has taken up a new role as head of e-FX at ANZ in Sydney, Australia. He will be responsible for maximising trading acrossall electronic FX products, including spot, forwards, non-deliverable forwards andclient algo offerings.

Senior Macro Strategist Leaving Deutsche Bank for the Buy-Side – eFinancialCareers

New York-based Sebastien Galy announced the news of his impending move on LinkedIn as he thanked his former colleagues at Deutsche Bank and Societe Generale. Galy declined to comment on his next destination.

Market Savvy 

The Fed’s Chair Sent the Markets Soaring – The New York Times

Jay Powell spoke, and the markets went wild. The Fed chairman brought smiles to trading floors yesterday with a speech at the Economic Club of New York: He needed only two words. Mr. Powell said that the Fed’s benchmark interest rate was “just below” the neutral level. Investors took that to mean that the central bank would stop raising rates soon.

Sterling Set for Third Weekly Drop on Brexit Concerns – Reuters

Sterling steadied on Friday but was on track for a third consecutive week of losses as investors moved to the sidelines before the British parliament’s vote on Brexit next month.

G20: Financial Difficulties Weaken Argentina’s Summit Clout – Financial Times (subscription)

Recent months have brought a devaluation of the Argentine peso against the dollar of more than 50 per cent, 60 per cent interest rates and a $56bn IMF emergency bailout. Such factors have combined to tarnishPresident Mauricio Macri’s image as the man who would return Argentina toeconomic health.

South Africa’s Rand Is Seen as Emerging-Market Proxy, SARB Says – Bloomberg

The rand’s wild swings whenever there is good or bad news elsewhere in the developing world is due to its status as a proxy for emerging markets, rather than to domestic factors, said Francois Groepe, a deputy governor at the South African Reserve Bank.