Top Headlines

Deutsche Bank Fined $205m by New York DFS for FX Misconduct – Profit & Loss

The New York Department of Financial Services (DFS) has fined Deutsche Bank $205 million as part of a consent order for violations of New York banking law, specifically relating to the bank’s FX business.

Dollar Hits Fresh 11-Month Peak as Rate Divergence Bets Weigh on Euro – Reuters

The dollar rose to a fresh 11-month high and the euro sagged towards its 2018 lows as investors increased their bets on a prolonged period of monetary policy divergence between the US and European central banks.

Sterling Falls to Seven-Month Low Before Bank of England Meeting – Reuters

The pound sank to a seven-month low before a Bank of England monetary policy meeting where officials could indicate if interest rates will be raised this year despite a weak spell for the economy.

Euro Bears Sharpen Their Claws – Financial Times (subscription)

The currency took a sudden lurch lower in very quiet trade earlier this morning after European Central Bank governing council member Ewald Nowotny, of Austria, said he expected to see it weaken.

Renminbi Close to Erasing Gains for 2018 as Dollar Firms – Financial Times (subscription)

The renminbi touched its weakest level since January in the face of a strengthening dollar, nearly wiping out gains made by the Chinese currency during 2018.

EM Sell-Off Set to Continue as Dollar Strengthens – Financial Times (subscription)

Few emerging market investors would disagree that the force driving emerging market assets is the duo of rising US yields and the strengthening US dollar.

Chancellor to Promise a Series of Post-Brexit Financial Partnerships – The Guardian

The government plans to safeguard London’s position as the world’s leading financial centre after Brexit by signing a series of financial partnerships with non-EU countries.

MTFs Still Reluctant to Move Even as Brexit Approaches – Euromoney

With less than 10 months to go until the UK formally leaves the European Union, most FX venues remain content to wait for the outcome of negotiations around key issues such as financial passporting before confirming their future strategy.

Ex-UBS Trader Loses Ban Appeal, Judges Call Case a ‘Tragedy’ – Bloomberg

An ex-UBS Group trader, banned from the finance industry over allegations he manipulated Libor rates, lost a bid to challenge the Financial Conduct Authority’s sanction despite London judges calling his case a “tragedy.”

More Change in the Platform Space? – Profit & Loss (subscription)

There are always noises in the industry about one deal or another, but the last three months has seen the volume increase on the rumour mill around one subject in particular – Thomson Reuters.

Regulatory News

MiFID II LEI Grace Period to End on 2 July – The Trade

ESMA confirms there will be no extension to the six-month grace period implemented just two weeks before MiFID II went live on 3 January this year.

Isda Rebuts Paper Citing Dodd Frank Extraterritoriality Concerns – FOW (subscription)

The Institute for New Economic Thinking claims Isda provided documentation for members to “deguarantee” their status under Dodd Frank.

New US Buffer Triggers Fresh Focus on CCAR Transparency – Risk (subscription)

Banks fear capital volatility and may also push for changes to US G-Sib surcharge.

Crypto News

Goldman Sachs Is Considering Crypto Trades Beyond Futures, Solomon Says – Bloomberg

Goldman Sachs Group is exploring cryptocurrency trades beyond the publicly-traded derivatives that it already handles, according to COO David Solomon.

Exclusive: Broadway Expands to Support Crypto Trading – Profit & Loss

Broadway Technology is extending its full software stack to support firms trading cryptoassets.

UK Crypto Platform Launches Litecoin Futures – The Trade

Crypto Facilities will launch Litecoin futures contracts this week in a move that could open up the market to institutional players.

Cryptocurrency Hedge Fund Gets VC Fred Wilson’s Backing Amid Bitcoin Slump – Fortune

Union Square Ventures, the New York-based venture capital firm, is betting on yet another cryptocurrency hedge fund startup, Multicoin Capital.

Five Theories About Why Crypto Prices Keep Trending Down – Profit & Loss

The price of bitcoin has fallen to $6,671 at the time of writing and other major cryptocurrencies have suffered a similar decline. So what went wrong?

When a Crypto Token Turns Out to be a Security, the Legal Complications Are Dizzying – Quartz

Chris Concannon, president of Cboe Global Markets, on what’s in store for crypto-trading platforms and investors, as well as the projects that issue digital assets to raise money.

Company News

Englander Joins Standard Chartered – Profit & Loss

Steven Englander has joined Standard Chartered as G10 head of FX research and North American macro strategy.

Weisberg Joins OneZero in Advisory Role – Profit & Loss

OneZero Financial Systems has announced the appointment of Phil Weisberg as strategic advisor.

Market Savvy

Kiwi Slips to Weakest Level in 2018 as GDP Growth Slows – Financial Times (subscription)

The New Zealand dollar slipped to its lowest point this year after data showed a slower pace of growth in the first quarter and the US dollar remained near recent highs.

Swiss Central Bank Keeps Close Eye on Italy and oil – Financial Times (subscription)

The Swiss National Bank is not amused by the political shockwaves in Italy that have put pressure on the euro and pumped up the franc.

Iran Feels Sting of US Sanctions Once More – Financial Times (subscription)

For many, the priority is to turn their rials into fixed assets before the currency plummets.