Top Headlines

Dollar Up for Second Day as Firmer Yields Support – Reuters

The dollar climbed for a second consecutive day as investors took profits into a recent drop in the greenback in the backdrop of firmer bond yields and a central bank policy decision due this week.

Dollar’s Bounce Means Time to Sell for Global Growth Optimists – Bloomberg

The dollar’s up against all of its major peers right now and that’s a good opportunity to sell, according to some Wall Street forecasters.

Sterling Slips to a One-Week Low Amid Brexit Worries – Reuters

Sterling fell to a one-week low against the dollar amid renewed worries about the impact of Brexit on the UK economy and the progress of talks to exit the European Union.

US Authorities Charge Three Banks, Eight Individuals in Futures ‘Spoofing’ Probe – Reuters

The US Justice Department and the country’s derivatives regulator said they had filed civil and criminal charges against three European banks, which paid $46.6 million to settle the cases, and eight individuals for alleged manipulation in US futures and commodities market.

Australian Regulator Starts Legal Action Against CBA Over Rate-Manipulation Allegations – Reuters

Australia’s corporate regulator said it had started legal proceedings against Commonwealth Bank of Australia over rate-manipulation allegations.

If You’re Looking to Make a Quick Buck Trading Around Australia’s Inflation Report, You’ll Have to Have Reflexes Like a Cat – Business Insider

According to new research from ANZ Bank, around 70% of the total move in the Australian dollar tends to occur just five seconds following its release.

CCP’s Brexit Competition Challenges Mifid II – Investment Europe

One of the most controversial elements of Mifid II, the open access requirement for CCP’s and trading venues may not be implemented until 2020, as local regulators granted last minute extensions.

MiFID II: Brace Yourselves, This Is Only the Beginning – Profit & Loss (subscription)

Although it required a heavy lift from the financial services industry, the Mifid II implementation deadline came and went with minimum disruption.

CCPs Should Pay Twice Into Default Waterfall, Say Researchers – Risk (subscription)

Central counterparties (CCPs) should contribute twice to the cost of covering a member default, argue researchers at the Federal Reserve Bank of Chicago.

Regulatory News

Can Bitcoin Be Regulated? US Courts Are About to Decide – Bloomberg

Federal judges in Brooklyn, New York, are about to rule on the question.

Europe Leaves IM Haircutting in CCP Recovery Crosshairs – Risk (subscription)

Proposals from the European Parliament could leave central counterparties with the power to dip into the initial margin accounts of clearing members during a crisis.

Asia Could See Mifid-Lite Regulations By 2020 – Asian Investor (subscription)

The introduction of tougher fee disclosure rules in Europe spells bad news for high charging fund groups in Asia, as local regulators look to emulate the Mifid II rules. 

Coincheck Quizzed Over Reimbursement Plans After $500m Heist – Financial Times (subscription)

Japan’s Financial Services Agency unsure if hacked exchange is able to repay customers.

Company News

Blackstone in Talks to Buy Majority Stake in Key Thomson Reuters Unit – Reuters

US private equity firm Blackstone Group is in advanced talks to buy an approximate 55 percent stake in the Financial and Risk business of Thomson Reuters, a deal that would value the unit at about $20 billion including debt, three sources familiar with the matter said.

Ex-Merrill Lynch and Icap Pros Launch FX Business – HFM Week

Former RBC Capital Markets managing director Graeme King and ex-London Capital Group FX head Peter Wells are launching an FX-focused investment management business.

Cobalt Delays FX Launch Due to “Expanded Brief” – FOW (subscription)

The London-based technology firm said it has delayed its launch to expand its brief to include credit management.

Market Savvy

Asian Currencies Spooked By Stronger Dollar; Fed Meeting in Focus – Reuters

Most Asian currencies fell as a rise in bond yields prompted a slight recovery in the dollar, while market participants awaited clues on US fiscal policy from a two-day Federal Reserve meeting.

Poland’s MPC Member Says Zloty Has Firming Potential – Reuters

Poland’s Monetary Policy Council (MPC) member Jerzy Zyzynski said that the zloty currency has a potential for further strengthening after it rose to euro recently, but further firming could hurt exports.

Enjoy This Cyclical Emerging Market Rally While It Lasts – Financial Times (subscription)

Politics, protectionism and persistent structural problems cloud rosy outlook.