Top Headlines

Erdogan Says Bankers Will Pay After Election for Currency Frenzy – Bloomberg

Turkish President Recep Tayyip Erdogan warned that bankers deemed responsible for creating excessive demand for hard currency and making misleading predictions on foreign exchange rates will “pay a heavy price” after next week’s elections.

Smaller Prime Brokers Find New Ways to Gain Foothold on Slippery FX Ladder – Euromoney

Bundling FX and non-FX services has become an established strategy for smaller prime brokers seeking a foothold in a market where the barriers to entry remain dauntingly high.

In the FICC of It (podcast) – Profit & Loss

The podcasters discuss how prime brokers and their preferred target customers are poles apart on what the PB service should look like. They also look at a new ETF launched in the crypto space, a strange FX market survey, and discuss how the FX market is radically different from 15-20 years ago.

Regulatory News

Theresa May Survives But Struggles to Win Over Tory Brexit Rebels – Financial Times

Theresa May fended off a challenge to her leadership on Sunday but struggled to win over some of her most ardent Conservative opponents to her Brexit plans during a tumultuous weekend that raised new questions about whether she can long survive as prime minister.

Wall Street Says It’s Ready for MiFID-Style Changes to Come to the US – Bloomberg

Wall Street brokers have taken the unprecedented step of urging US regulators to let them charge clients separately for stock and bond analysis, a change that would upend the industry if it happened.

EU Swap Users Still Hope for Single-Sided Reporting, One Day – (subscription)

When the European Union first revealed plans to cut back unnecessary regulation through its Refit programme in 2015, derivatives users were quietly optimistic that authorities would take the pruning shears to the much-maligned swaps reporting rules.

FCA Under Fire After Staff Take 25,887 Sick Days – Financial News (subscription)

‘Alarming’ figures come as the UK’s financial regulator faces a rise in bullying and harassment claims.

Crypto News

P&L Talk Series with Integral’s Harpal Sandhu – Profit & Loss

Harpal Sandhu, CEO of Integral, talks about the launch of his new cryptocurrency exchange, and how he sees the crypto markets evolving in the future.

Most Bitcoin Trading Faked by Unregulated Exchanges, Study Finds – The Wall Street Journal (subscription)

Nearly 95% of all reported trading in bitcoin is artificially created by unregulated exchanges, a new study concludes, raising fresh doubts about the nascent market following a steep decline in prices over the past year.

FTSE Unveils Digital Assets Index – Profit & Loss

FTSE Russell, the global index, analytics and data provider, and DAR Data Services have announced their intention to launch a new indicative FTSE Digital Assets Index. The new index will be used to evaluate and test a benchmark for the most actively traded digital assets.

Crypto Futures and Institutional Interest: Looking in the Wrong Place – CoinDesk

If a significant venue like the Cboe doesn’t see a future in offering a product that institutional investors allegedly require, then obviously there’s no demand, right? And if the institutions don’t bring their money and legitimacy into the market, where is the much-needed liquidity going to come from? As usual, the reactions are overblown.

Company News

CME FX Link One Year On – Progress But More to Come – Profit & Loss

March 25 marks the one year anniversary of the launch of CME’s FX Link, probably the most significant attempt by a market intermediary to establish a bridge between OTC and futures markets.

Banks Use AI to Catch Rogue Traders Before the Act – Financial Times

imagine if you could stop rogue trading when it was just the spark of an idea – a stray thought sparked by a trader’s expensive divorce, a big loss suffered at a poker game, or growing disillusionment with the daily grind.

Major Dealers Back DTCC-Euroclear Collateral Management Project – The Trade

A joint project between the DTCC and Euroclear designed to streamline collateral settlement and reporting processes has gone live four years after its initially planned launch date.

Central Banks Highlight Value, Embrace Fintech – Profit & Loss

Two central banks have signalled increased engagement with the fintech industry with the Bank of England publishing a detailed report in its latest Quarterly Bulletin into the potential for fintech and the Federal Reserve Bank of New York establishing a Fintech Advisory Group.

Eurex Repo Adds Soc Gen and BBVA to Partnership Programme – The Trade

Eurex now has 28 participants signed up to the repo partnership programme including JP Morgan, Deutsche Bank and Morgan Stanley.

Deutsche Bank’s Investment-Banking Arm Looms Large Over Commerzbank Merger Talks – The Wall Street Journal (subscription)

The fate of Deutsche Bank’s global investment bank, including its embattled US operations, has emerged as a focus of debate following the first week of formal merger talks with Commerzbank, according to people familiar with the matter.

Eris Takes Aim at Europe with Revamped Swap Futures – MarketVoice

Intercontinental Exchange and Eris Innovations are revamping the pricing structure of their European interest rate swap futures to make the contracts more user-friendly. A similar change has already proved highly successful in the US, and the two companies are now working to roll out the new pricing structure in the third quarter.

Market Savvy

Mayday? Sterling Falls as Pressure Grows on PM to Step Down over Brexit – Reuters

Sterling fell on Monday as pressure grew on Prime Minister Theresa May to give a date for leaving office ahead of parliamentary votes on Brexit.

Yen Lifted, Dollar Undermined by US Yield Curveball – Reuters

The yen held near six-week highs against the dollar on Monday as fears of economic recession, fanned by inversion of the US bond yield curve, sapped demand for higher-yield, growth reliant assets and drove investors towards “safe” destinations.

Lira Rebounds as Turkey Central Bank Moves to Allay Market Fears – Bloomberg

The Turkish lira rebounded, recouping losses after its worst day since a crash last year, as the central bank raised rates borrowing costs and signaled it was taking steps to bolster its foreign currency reserves.