Deutsche Bank will exit global equities trading, cut 18,000 jobs and transfer €75bn of risk-weighted assets into a so-called bad bank as part of a major overhaul of the German lender’s business. The bank has also entered into preliminary talks over the sale of its electronic trading and prime finance divisions with French rival BNP Paribas.
- Deutsche Bank Outlines Significant Strategic Transformation and Restructuring Plans – Deutsche Bank
- Deutsche Bank Shares Rise after Shake-Up to Cut 18,000 Jobs – Reuters
- After Deutsche Bank Cuts, Where Will the Growth Be? – Reuters
- Inside Deutsche Bank’s Cuts: Christian Sewing’s Private Letter to Staff – eFinancialCareers
Donald Trump’s obsession with currency manipulation has reached a new high. The president’s latest tweet on the subject last week suggested the US should “match” what he called a “big currency manipulation game” played by Europe and China. Worryingly, his outburst followed recent moves by US institutions to focus more on currency manipulation.
Over the past few months I have had many conversations with FX traders about market conditions. Those who are unhappy have generally had either a rigid trading framework placed upon them or they grew up in the high volume days of just a few years ago. The happier ones are those traders who can ride out the threat of a drawdown or two and generally hang in there with their positions – in other words, old-fashioned, macro traders.
News that FastmatchFX founder Dmitri Galinov is planning a return to the FX industry dominates this week’s podcast, which leads into a broader discussion around the NDF market in general. On the subject of disruption, the podcasters take a look at a novel approach to recruitment by XTX Markets.
For three years European asset managers have kept their fingers crossed for luck, wishing hard that the UK’s exit from the EU will do minimum damage to the €25tn investment industry. But a dispute between the EU and Switzerland, in which financial services is a casualty, is making London and continental traders even more jittery.
International Monetary Fund head Christine Lagarde is “uniquely qualified” to lead the European Central Bank in the face of challenges from both inside and outside the euro area, according to ECB Executive Board member Benoit Coeure.
The MiFID II commodity derivatives position limits regime is an entirely new regime in the EU and has no equivalent in other jurisdictions. For this reason, it was a long and difficult implementation exercise and it is still early to see whether the application of limits have effectively met the objectives behind the legislation. FIA and ISDA members therefore consider that ESMA and policy makers, in their review, should concentrate on a few features rather than a comprehensive re-writing of the regime.
The first trades using utility settlement coin (USC), a digital currency designed by a group of banks to speed up financial transactions, are expected to take place later this year, according to one of the project’s most senior technologists.
Cryptocurrency is on the agenda in Washington. The Internal Revenue Service is expected to update its 2014 guidance on cryptocurrencies in coming weeks, following an April request from a bipartisan group of 20 lawmakers. It is part of a broader push to boost the nascent cryptocurrency industry.
As little as six months ago, Bitcoin was moribund, with prices languishing at a fifth of their record high, disappointing a mass of cryptocurrency enthusiasts who had grown use to extreme — and often upwards — moves in the virtual currency. But the Asia Blockchain Summit in Taipei highlighted how volatility is back, reviving the excitement around crypto trading.
Shockwaves have been felt through the foreign exchange prime brokerage business since Citi gave notice to several high-frequency trading firms, according to industry sources – with market participants now nervous about relying on any one bank and looking to add to their PB relationships. BNP Paribas, Deutsche Bank, HSBC and NatWest are said to be onboarding Citi’s former clients.
Qantas has become the first Australian corporate treasury to sign a Statement of Commitment to the FX Global Code. The SoC has been listed on the AFMA/ACI Australia FX Global Code Register.
Record Currency Management is building a synthetic foreign exchange prime brokerage offering in response to the toll such services place on banks’ balance sheets. If successful, it will introduce an alternative form of collateral management to secure the credit that banks provide market participants trading in the $5 trillion-a-day currency markets.
As part of the restructure, Societe Generale said that it has simplified its global banking and investor solutions unit to streamline its markets activities. The global markets division, headed up by Jean-François Grégoire since February, now consists of two main business lines, equities and equity derivatives, and fixed income and currencies.
ECN and FX technology provider Spotex has unveiled new functionality that will enable brokers to configure discrete liquidity pools for clients that will run on the firm’s modular broker technology.
Bank of America has hired traders from rivals Morgan Stanley and Credit Suisse Group for its new European hub in Paris as it moves some trading operations away from London in the wake of Brexit.
Sterling hovered near a six-month low against the dollar on Monday as investors continued to bet on lower British interest rates and added to their short positions on the currency.
The dollar held near three-week highs in early trading on Monday, holding on to its gains after last week’s strong US jobs data lowered expectations for a sharp Federal Reserve interest rate cut.
The Turkish lira suffered its worst day in months on Monday after President Recep Tayyip Erdogan sacked the country’s central bank governor over a dispute about interest rates.