Top Headlines
ECB Minutes Reveal Fears Over Trump Currency Wars – Financial Times (subscription)
Eurozone concerns over the weakness of the dollar were laid bare in a set of European Central Bank minutes that highlighted fears the Trump administration was deliberately trying to engage in currency wars.
Euro Set for Second Biggest Weekly Drop Since October as Risk Looms – Reuters
The euro slipped and is set to post its second biggest weekly loss in nearly four months as investors trim positions before a big week for global currency markets from a European politics perspective.
Strong Euro a “Point of Attention” for ECB: Smets – Reuters
The strong euro currency is a “point of attention” for policymakers at the European Central Bank, Belgium’s ECB Governing Council member Jan Smets said.
US Dollar Falls as View on Fed Policy Unchanged – Wall Street Journal (subscription)
The US dollar fell as optimism about the economy isn’t leading to bets that the Federal Reserve will accelerate its expected pace of rate increases.
Sterling Edges Up as Soft Data Is Offset by BoE Hike Expectations – Reuters
Sterling edged up against the dollar and euro but finished the week in much the same place as it had started, with weaker-than-expected economic data being offset by hawkish comments from Bank of England policymakers.
Ex-JPMorgan FX Salesman Says Dismissal Cost Him $2.8 Million – Bloomberg
A former JPMorgan currency salesman, fighting the bank for a second time over what he claims was his unfair dismissal, said he lost about 2 million pounds ($2.8 million) in compensation after he was let go for a practice that was previously commonplace at the bank.
Buy Side Group Releases Last Look Guidelines – Profit & Loss
The UK’s Investment Association (IA) has published a number of guidelines regarding the use of last look, seeking to address concerns that this practice can negatively affect the ability of asset managers to meet the needs of their clients.
Edging Towards the Exit? – Profit & Loss (subscription)
The use of a last look window by market makers will decrease in 2018, but don’t expect the practice to disappear any time soon.
The Top Cryptocurrency Traders Are Asking for a Big Shake-Up to Bitcoin Futures – Business Insider
Numerous market participants are calling on exchanges to switch from cash settlement to physical settlement.
A $232 Million Cryptocurrency Fight Comes to a Close – Wall Street Journal (subscription)
Tezos team can move forward after nonprofit foundation chief who was locked in a battle for control of funds steps down.
Regulatory News
Federal Reserve Bank of New York President William Dudley warned that investing in privately issued digital money such as bitcoin could end in big financial losses for those involved.
French Regulator Tightens Net on Cryptocurrency Derivatives – Global Capital (subscription)
Tighter regulation an advertising ban for the products.
Patchwork Crypto Laws Offers ICOs Opportunity, If Not Clarity – Bloomberg
No country has drafted specific legislation governing the popular method startups are using to raise funds, according to a survey of law firms across 18 global jurisdictions posted on Lex Mundi’s website.
Democrats Get Campaign Cash from Banks Ahead of Deregulation Vote – Financial Times (subscription)
A number of key Democrats in the US Senate are finding pockets of financial support for re-election races this year from a cluster of banks that have stepped up campaign contributions ahead of a vote on industry deregulation.
CFTC no-action relief to be codified, but big changes on de minimis and position limits still distant.
Company News
MAS Consults on Moving OTC Derivatives onto Exchange – FOW (subscription)
The proposal would bring Singapore in line with US and European regulators.
Blockchain ‘Could Save Asset Managers $2.7 Billion a Year’ – Financial Times (subscription)
Blockchain could save asset managers $2.7bn a year if the investment industry shunned the laborious manual practices involved in buying and selling funds in favour of using online ledger technology, according to research.
IPC, GreenKey Team for AI Service – Profit & Loss
IPC, a provider of communications and networking systems, and GreenKey Technologies, creator of voice software with integrated speech recognition, have signed an agreement for a collaboration between the firms.
Market Savvy
Yen Strength Conversation Changes if Dollar Weakness Is Systemic – Financial Times (subscription)
World’s largest net creditor nation means currency faces upward pressure for years.
As Volatility Returns, This Is How Emerging Markets Stack Up – Bloomberg
The specter of volatile financial markets is prompting investors to be more selective in emerging markets and Asia is stacking up to be among the most resilient when it comes to economic measures.