Top Headlines

Dollar Drops as Trump’s ‘America First’ Speech Unnerves Traders – Bloomberg

The dollar extended losses when Donald Trump’s inauguration speech offered scant details on his fiscal policies while emphasizing an “America first” approach to foreign policy, spurring concerns of rising trade protectionism.

Gauging the “Trump Factor” – Profit & Loss

What impact will the election of Donald Trump have on the regulatory landscape for foreign exchange?

History Suggests Trump Month Will Be Stocks Down, Dollar Up – Reuters

For financial markets, the Trump era begins on Monday, and if history is any guide the following month should be a rocky one for Wall Street but positive for the dollar.

Pound Keeps Momentum Ahead of Supreme Court Ruling – Financial Times (subscription)

Sterling hits a fresh high for 2017 as it benefits from dollar weakness and anticipation of Brexit ruling.

Sterling’s Future Under a ‘Clean’ Brexit – Financial Times (subscription)

The sharp drop in sterling that has followed the Brexit referendum has imparted a major shock to anyone doing business, or owning assets, across the UK border.

The Dollar’s Trump Trade Approaches an Inflection Point – Bloomberg

If you want to know whether the Trump trade has legs, keep an eye on dollar-yen.

Mexico’s Peso Extends Friday Rally to Hit Two-Week High – Reuters

Mexico’s peso extended its rally and strengthened 0.8 percent to trade at 21.4064 pesos per dollar – its strongest level in two weeks.

Trump Trade Risks Seen Spreading Peso Woes to Canadian Dollar – Bloomberg

While the currency market fixates on the Mexican peso every time US President Donald Trump tweets about trade, the Canadian dollar may have more at stake if protectionist policies materialize.

Giancarlo Officially Named Acting CFTC Chairman – Profit & Loss

Christopher Giancarlo has been designated per seriatim as Acting Chairman of the US Commodity Futures Trading Commission (CFTC).

Turkey’s Lira Eases as Investors Pause Before Critical Central Bank Meeting – Reuters

Turkey’s lira weakened slightly as investors took a cautious tack a day before a central bank meeting widely seen as a major credibility test in the face of a tumbling currency.

EU Said to Warn Deutsche Boerse-LSE Merger May Crush Rivals – Bloomberg

European Union regulators told Deutsche Boerse and London Stock Exchange Group that their $12 billion deal to create the region’s dominant exchange operator combines two direct rivals that may eliminate clearing services competitors, according to two people who’ve seen the EU’s statement of objections.

Wall Street Struggles to Cash in on Yuan’s Swoon – Wall Street Journal (subscription)

High cost of borrowing in China, country’s effort to punish short sellers are cited.

The FX Aggregation Issue – Profit & Loss

Will the liquidity provider still be there in torrid times?

Once Again in Circularity and Potential Leading Indicators – Financial Times (subscription)

The US dollar and 10yr USD Treasury yields peaked in mid-December, while equity markets have lost their upside momentum.

2017 To Be Year of Independent Broker-Dealer Mergers – Investment News

A looming fiduciary rule, combined with regulations limiting product sales, have experts predicting more consolidation is inevitable.

Regulatory News

Margin Deadline Could Lead to Swaps Market Disruption – Profit & Loss

The swaps market could suffer disruption if buy side trading firms aren’t ready for the March 1 deadline for the implementation of new margin requirement rules, speakers at SefCon VII warned.

Massad: Cost-Benefit Bill Makes CFTC Rulemaking ‘Very Difficult’ – Risk (subscription)

Departing chairman says the CFTC already does “a good job” of analysing costs.

China Clamps Down on Banks Moving Currency Overseas – Financial Times (subscription)

Regulators bar bankers from making net renminbi outflows as part of capital controls regime.

Canadian OTC Clearing Mandate Set for April – The Trade

Mandatory clearing of OTC derivatives will come into force in Canada from April this year.

Company News

Wells Fargo Restructures: FX Into Securities – Profit & Loss

Wells Fargo is disbanding its International Group, which includes foreign exchange, and switching the components into areas of its Wholesale Banking Group.

ICE Clear US Files to Accept Only Dollars as Margin – FOW (subscription)

ICE Clear US has applied to change its collateral policy to only accept US dollars from clients giving up cash as original margin.

Simela Joins 360T Sales Team in New York – Profit & Loss

360T has hired Sipho Simela to work in its real money sales team in New York.

Aston Capital Goes Live in LD4 – Profit & Loss

Aston Capital Management has gone live in the LD4 Equinix data centre, conducting the first test trades on Thursday last week.

China Bitcoin Exchanges to Impose Trading Fee – Wall Street Journal (subscription)

Under regulatory pressure to rein in speculation, three largest exchanges will charge 0.2% per transaction starting at noon Tuesday.

Market Savvy

Emerging Currencies Strengthen on Scant Signs of Trump Stimulus – Bloomberg

Emerging-market stocks and currencies headed for the highest levels in 11 weeks as US President Donald Trump’s first days in office produced no policy announcements to buoy the dollar.

Inflation Data Offer Chance to Trade Antipodean Dollars – Financial Times (subscription)

Australian quarter-on-quarter CPI expected to rise 0.7%, and New Zealand’s 0.3%.

Rupee Opens 13 Paise Higher at 68.05 Against Dollar – Economic Times

The rupee opened 13 paise higher at 68.05 against dollar on account of selling in American currency by banks and exporters.