Top Headlines
Does TCA Really Need to be Independent? – Profit & Loss
Mike Harris, president of Campbell & Company, discusses the pros and cons of independently-provided transaction cost analysis (TCA).
FX: Wary Investors Still Suspicious of Currency-Hedged ETFs – Euromoney
Investors continue to shy away from currency-hedged ETFs despite their positive short- and medium-term performance.
Pound Stuck Near 20-Month Low as UK Gov’t Rules Out Second Brexit Referendum – Reuters
The pound languished near 20-month lows on Monday, with reports that more politicians are calling for a second Brexit referendum doing little to force the currency out of a narrow trading range.
- Pressure Mounts on May to Let MPs Vote to End Brexit Impasse – Financial Times
- Brexit Disarray Sends a Shiver Through the Financial Sector – The Wall Street Journal (subscription)
In the FICC of It (podcast) – Profit & Loss
The podcasters take a look at the first in-depth analysis from a broker of the CME-NEX deal and discuss the recent changes at
Regulatory News
Regulators Need Joined Up Thinking to Spot Derivatives Risks : BIS – Reuters
Regulators should
- Yet More Bumps on the Path to Normal – BIS
- BIS Fears Financial Seizure at the Heart of the World’s Clearing System – The Telegraph
FCA Taps
US-based
Crypto News
The Trade’s Best of 2018: Crypto – The Trade
If 2017 was the year that crypto burst into the mainstream consciousness with the biggest of bangs, then 2018 could be viewed as the year it imploded.
The Bitcoin Price is Wrong – Financial Times
After the heart-attack in crypto-thingies over the past year, you’d think some corners of the financial world would have dialled down on giving airtime to those pushing a
Mapping Out the Coinbase Mafia – The Block
Coinbase, the $8 billion cryptocurrency exchange, is the1,000-pound gorilla of the crypto world. One of the largest effects that Coinbase has had on the industry is through its former employees. These employees have started multi-million dollar hedge funds, venture firms, and billion dollar protocols and are so influential in the industry that they have been unofficially dubbed the “Coinbase Mafia”
Crypto’s Market Structure Forcing Institutions Back to 80s – Markets Media
Market fragmentation has made trading crypto far more reminiscent of the 80s’ Wall Street propelled by slate grey brick phones, printed trade tickets and double-breasted blazers than any modern market.
Company News
Swedbank Rejects Nasdaq Bid for Cinnober – Global Investor (subscription)
Swedbank Robur, which owns 9.7% of Cinnober’s shares, said the offer does not reflect Cinnober’s value.
Barclays, a Hedge Fund and Two Traders’ Hidden $400 Million Loss – Bloomberg
A hedge fund’s lawsuit has unearthed some trading losses that Barclays might have preferred to forget. Two metals traders at Barclays were dismissed seven years ago after racking up losses of $396 million, according to documents disclosed in a court case.
Deutsche Bonuses Evaporate as Bank Shares Tank – Financial News (subscription)
Deutsche Bank faces an uphill battle to hold on to its star performers after a slump in the German lender’s share price has left key staff sitting on paper losses of millions of dollars.
A Buy-Side Swaps Order Book – With a Difference – Risk.net (subscription)
The euro swaps market is beginning an experiment with e
BNY Mellon Hires Government Affairs Boss from CME Group – Financial News (subscription)
Ben Pott, who is known for his expertise on a range of EU trading rules, will be based in Frankfurt.
Malhotra Back to Barclays – Profit & Loss
Gaurav Malhotra has joined Barclays in Singapore as director with responsibility for the e-FX business in the Asia Pacific region.
Brexit Woes Spur $376 Billion Manager to Shut London Swap Trades – Bloomberg
Union Investment, which manages 333 billion euros ($376billion) of assets, is the first to declare that it will close existing euro-denominated swap trades at London’s LCH – the world’s largest clearinghouse and probably among the City of London firms most vulnerable to disruption over the next few months.
Market Savvy
Dollar Index Near 18-Month High on Safe-Haven Bid Amid Global Growth Worries – Reuters
The dollar held near an 18-month high on Monday, bolstered by safe-haven buying as heightened concerns of a global economic slowdown reduced appetites for riskier assets such as stocks and Asian currencies.
China’s Yuan Trading Likely to Get More Volatile, Goldman Says – Bloomberg
China’s exchange rate is likely to get more volatile intime as the country pushes greater international use of the yuan, according to Goldman Sachs.
Investor Sentiment Sours as Outlook for Dollar Goes into Reverse – Financial Times
Sentiment among leading investors is souring rapidly as they become more convinced that the global economy is likely to deteriorate over the coming year, according to new research on asset managers.
Fed’s Powell Poised to Set Rates Policy Tone for 2019 – Financial Times
Wednesday’s meeting of Federal Reserve policymakers is their last of 2018 and, arguably, the most important. They are widely expected to raise rates for the fourth time this year to a range of between 2.25 and 2.50 percent, but it is what they signal for next year that should help shape asset allocation decisions for 2019.