Top Headlines

Dollar Tumbles Against Yen After Health Bill Failure – Wall Street Journal (subscription)

The US dollar fell to its lowest level against the yen since late November as the House Republicans’ failure to pass its long-promised health-care bill gave investors another cue to buy other major currencies. 

Will US Healthcare Failure Shake Investor Confidence? – Financial Times (subscription)

Scrutiny of Trump’s tax plans will increase now he has failed to roll back Obamacare.

Sterling Jumps Above $1.25 in Trump Trade Slump – Reuters

Sterling surged almost one percent to a seven-week high against the dollar, gaining with other major currencies after the failure of a Republican healthcare bill weakened faith in US President Donald Trump’s other campaign promises.

Art of the Deal? Swooning Dollar Firing Up Pound and Euro – Financial Times (subscription)

It’s a dour start to the week for the Donald’s dollar, which is heading back down to where it was before Mr Trump was elected president of the US.

Momentum Builds for Yen to Break 110 – Bloomberg

The most oversold Group-of-10 currency since the US election is making a comeback.

SNB Continues to Intervene in FX Markets – Profit & Loss

The Swiss National Bank continued to intervene in foreign exchange markets in 2016 with the intention of averting Swiss franc strength.

Singapore Dollar Bulls Are Gathering in the Swap Market – Bloomberg

Singapore’s interest-rate markets are signaling gains for the local dollar as bets grow the nation’s central bank will avoid easing policy next month and some economists are starting to forecast tightening in October.

A Rogue Trader Blames the System, but Not All Are Persuaded – The New York Times

Kweku M. Adoboli believes that his experience offers a valuable lesson to regulators and financial institutions on the need for robust controls at investment banks and a change in their profits-at-all-costs work culture.

OTC Versus Exchange? – Profit & Loss (subscription)

No matter where you trade, the drivers remain price, relationship, ease of transaction and speed.

Don’t Worry, Be Happy: High Frequency Trading Is Over, Dead, It’s Done – Forbes

We’ve had the entire cycle, the entire economic technology cycle, in only a couple of decades.

What Do the Global Code, Brexit and Flash Crashes Have in Common? – Profit & Loss

On March 29, Profit & Loss Forex Network London takes place against the backdrop of UK Prime Minister Theresa May invoking Article 50, in a day filled with FX industry experts assembled to discuss everything from the Global Code to Brexit to flash crashes to the liquidity crunch and much more.

Regulatory News

Misconduct Rife in Derivatives: Ex-CFTC Enforcement Chief – Reuters

A “massive amount of misconduct” in futures, options and swaps markets goes undetected because of insufficient data mining, Aitan Goelman, who until last month was enforcement chief for the top US derivatives regulator, said in an interview.

May’s Post-Brexit Regulation Plans Readied for Quick Start – Bloomberg

Theresa May will follow her initiation of the Brexit process this week by setting out how she plans to bring thousands of European Union regulations under UK control.

London Banks Need to Move Key Functions to EU to Keep Access: ECB – Reuters

The European Central Bank expects London-based banks seeking to keep access to the European Union’s single market once Britain leaves the bloc to move key functions, branches and dealing operations, the ECB’s top supervisor said.

UK Banks Face $6.7 Million Supervision Tab for Brexit Costs – Bloomberg

The Bank of England plans to boost fees on UK banks to recover 5.4 million pounds ($6.7 million) of regulatory costs associated with Brexit.

CFTC Extends Swap Confirmation Relief – Profit & Loss

The US Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) has issued a no-action letter extending relief associated with swap trade confirmation requirements that was due to expire on March 31, 2017.

Regulatory Arbitrage Fears Over MiFID Post-Trade Reporting – Risk (subscription)

EU regulators may use different reporting deferral periods for large or illiquid trades.

UK’s Biggest Banks Tested for Deep Recession in BOE Scenarios – Bloomberg

The Bank of England will subject the UK’s biggest lenders to a stress test featuring a deep economic slump and a sharp depreciation of the pound as the country prepares for the impact of withdrawal from the European Union.

Company News

Englander Exits Citi? – Profit & Loss

Steven Englander, global head of G10 FX strategy, has left Citi according to market sources.

London and New York Lose Ground to Asian Rivals in Finance Rankings – Financial Times (subscription)

Brexit and Donald Trump raise questions over strength of City and Wall St London remains top of a ranking of global financial centres but saw its overall score slide on concerns about its competitiveness in the wake of Brexit.

How Banks Lost the Ear of Britain’s Government Over Brexit – Reuters

Senior bankers expected special treatment from the government after Britain voted to leave the EU.

Traders Used Poker Games and Food Menus to Make a Killing Off Illegal Trades and Cover It Up But Then AI Found Out – CNBC

After every poker night, there would be a big spike in the profit and loss statement for the traders involved because they would be colluding and tipping each other off about trades.

Market Savvy

Asian Currencies Rise as Dollar Falls Across the Board – Reuters

Most Asian currencies hit multi-month highs as the dollar declined across the board after US President Donald Trump failed to push through a healthcare reform bill.

Rand and Rupee at Fresh 18-Month Highs as EM Currency Rally Rolls On – Financial Times (subscription)

The rand extended its recent rally to hit its strongest level since July 2015, as Donald Trump’s failure to get his flagship healthcare reforms through congress puts further pressure on the dollar.

South Africa’s Gordhan Recalled from International Roadshow, Rand Falls – Reuters

The rand fell as much as 1.7 percent following the report, while bonds weakened sharply.