Top Headlines
Dollar Below Three-Month Highs as US 10-Year Yield Pulls Back – Reuters
The dollar held steady against a basket of major currencies after pulling back slightly from a three and a half month high last week, pressured by a decline in the benchmark US 10-year Treasury yield.
Investors Slash Long Sterling Positions by Second Biggest Amount in Eight Months: CFTC – Reuters
Currency investors sharply unwound their bullish expectations on sterling as weak economic growth data and recent comments from the Bank of England prompted traders to cut bets for a rate hike at a policy meeting next week.
European Currencies Crushed as Faltering Growth Quashes Optimism – Bloomberg
European currencies are facing an inflection point as investors call into question the region’s rosy growth outlook.
RBC Fights £13 Million Whistleblower Claim – FX Week (subscription)
Ex-trader John Banerjee is suing RBC for unfair dismissal and aims to claim whistleblower status.
CFTC Brings Charges Against Alleged FX Prop Shop Fraudster – Profit & Loss
The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against three firms and an individual alleging they misappropriated FX traders’ funds as part of a fraudulent scheme to establish a proprietary FX trading business.
UBS Delays Brexit Plans to Shift Jobs from London – Financial News (subscription)
UBS has pushed back plans to relocate up to 200 London-based employees to continental Europe, in order to avoid unnecessary expenditure while it waits for clarity on a Brexit trade deal.
- Banks Seem Oddly Unconcerned About Brexit – Bloomberg
- Campaigner Warns of Huge Risks to the City of Higher Barriers to Dealing with the EU – Financial Times (subscription)
Ficc Revenues Bounce Off Lows but Still Down – FX Week (subscription)
European banks bounce off lows in Ficc revenues in the first quarter of the 2018, but year-on-year earnings remain negative.
Goldman Sees the Australian Dollar Falling to 72 Cents – Bloomberg
Australia’s dollar is poised to drop another five percent this year as the central bank stays on hold while the Federal Reserve keeps raising interest rates, Goldman Sachs Asset Management says.
Bitcoin Frenzy Settles Down as Big Players Muscle Into Market – Reuters
After bouncing up, falling down and keeping investors on the edges of their seats, bitcoin may be maturing into a period of relatively boring stability, experts say.
- Virtu Veteran’s New Crypto Market Has a $1 Million Debut – Bloomberg
- ‘The Guardrails Haven’t Been Found Yet’: The Execs Behind a Big Wall Street Bitcoin Partnership Say Crypto Is Still in Its Infancy – Business Insider
Regulatory News
Research Paper Takes Aim at “Unrealistic” Non-Cleared Margin Requirements – Profit & Loss
The International Swaps and Derivatives Association (ISDA) has published a new academic paper that analyses the regulatory initial margin framework for the non-cleared derivatives market and argues that the 10-day liquidity horizon applied under the framework is “not realistic”.
Cryptocurrencies Pose a Threat, Must Be Regulated, CEOs Say – Bloomberg
Nasdaq chief executive officer Adena Friedman and Bank of America CEO Brian Moynihan rang alarm bells about the nascent cryptocurrency market, calling for regulation of certain trading and warning about the potential to abet criminal behavior.
- Iran Cryptocurrency Project on Track Despite Central Bank Ban, Minister Says – Reuters
- Switzerland Wants to Be the World Capital of Cryptocurrency – Wall Street Journal (subscription)
In the unusual circumstances of the financial crisis aftermath, a regulatory crackdown benefited the US industry.
Mifid II Regime Shines Light on Trading Relations – Financial Times (subscription)
Fund managers in Europe may face tough conversations with some brokers this week after a regulatory drive to publicly disclose more information on their trading relationships begins.
Company News
Societe Generale Partners with BestX – Profit & Loss
Societe Generale Corporate and Investment Banking (SG CIB) has announced a partnership with BestX, an independent transaction cost analysis (TCA) provider for algo FX spot execution.
Deutsche Boerse Eyes Bigger Slice of OTC Swaps Market – FOW (subscription)
Deutsche Boerse is targeting a 25% market share of the OTC euro-dominated interest rate swaps market.
Asian Flows Bloom Post-Mifid II, TR’s Penney Says – FX Week (subscription)
Neill Penney, co-head of trading at Thomson Reuters, says the arrival of Mifid II was a lightbulb moment for foreign exchange markets.
R5 Selects Kx Technology – Profit & Loss
R5 has implemented Kx technology to power R5-SHCH Connect, a new service that links banks in China with London’s FX market.
Vela Adds Eris to DMA Solution – Profit & Loss
Connectivity provider Vela, has added swap futures trading venue Eris Exchange to its direct market access platform.
Market Savvy
Treasury Yield Above Three Per Cent Dents Demand for Risk Assets – Bloomberg
The MSCI Emerging-Market Currency Index fell for a fourth week, the longest losing streak since October.
Russia Holds Rates Steady at 7.25% on Inflation Concerns – Financial Times (subscription)
Russia’s central bank held interest rates steady following seven straight months of cuts as the pressure from tough new US sanctions on the rouble has created new inflation risks.
Argentina Increases Rates in Response to Dollar Strength – Financial Times (subscription)
A strengthening dollar pushed Argentina to raise its policy interest rate three percentage points to 30.25 per cent, underscoring the mounting pressure on emerging market currencies.