Top Headlines

Esma Calls for Extra Powers to Deal with Brexit Uncertainty – Financial Times

Europe’s top financial markets supervisor has called for powers to temporarily waive the application of EU rules and make quick fixes to problematic regulations as he warned of the unpredictable challenges of Brexit.

Should We Do More About the Hour after the New York Close? (opinion) – Profit & Loss

There was quite a lot of chatter around a so-called flash crash in the Swiss franc this week, when EUR/CHF jumped just over 100 points (as did USD/CHF) and although my sources tell me it was a fat finger error, it comes on the back of a bigger event just the month before. These events are starting to occur a little too frequently for some peoples’ liking, so what can we do about it? Actually quite a lot I think.

Beware Pools of Liquidity: They Could Be a Mirage – Financial Times

E-trading, shrunken market-makers and retreating central banks is a triple threat.

‘Flash Boys’-Style Speed Bump Planned for Futures Markets – Bloomberg

Intercontinental Exchange’s futures market wants to join the battle against the fastest traders.

What’s Trendy? Shining a Light on 2018 Derivatives Volumes and Open Interest – John Lothian News

The totals are in. And the winner is…almost everyone! It was a great year for the global exchange traded derivatives industry as for the first time ever annual volume was more than 30 billion contracts.

Ex-Barclays Trader Says Gossip Was That All Banks Fixed Euribor – Bloomberg

A former Barclays trader facing charges of manipulating a key interest rate benchmark said the gossip in London was that many other banks were submitting Euribor rates to benefit derivatives positions.

Regulatory News

Giancarlo’s Last Stand: The Race to Complete Sef Reforms – (subscription)

Even before he became chairman of the Commodity Futures Trading Commission, Christopher Giancarlo had always been vocal about the need to reform the US trading venue regime for swaps. The ambitious proposal from November 2018 could therefore be considered the flagship of his time in office.

London Clearing Chief Warns against Brexit Complacency – Financial News (subscription)

Daniel Maguire says Brexit has handed LCH’s German rival a new marketing strategy.

Brexit Threatens Surge in Market Abuse, Financial Watchdog Warns – Financial Times

Brexit threatens an increase in market abuse as surveillance becomes patchier in the wake of the financial sector shifting business to the EU, the UK’s industry regulator has warned.

Crypto News

Quadriga Accidentally Moved More Bitcoin to an Inaccessible Wallet – Bloomberg

More Bitcoin has been caught in the Quadriga CXX vortex. The shuttered Vancouver-based digital exchange “inadvertently” transferred 103 Bitcoins on Feb. 6 to offline storage accounts known as cold wallets that are protected by passwords held by the company’s founder, who died in December.

Value of Cryptocurrencies is Only in the Eye of Holders – Financial Times

After much hype and soaring valuations in the latter part of 2017, cryptocurrency prices fell back to earth in 2018. While the collapse in valuations vindicated critics, it does not appear to have deterred true cryptocurrency believers from promoting its potential.

ICOs Alive and Well as Crypto Startups Go After Wealthy Buyers – Bloomberg

Checking for a pulse in the world of cryptocurrencies? Look no further than the ICO market.

Company News

BNY Mellon Opens Program Trading Desk in FX Business Reshuffle – FX Week (subscription)

BNY Mellon quietly rolled out a foreign exchange Program Trading Desk package of services across three continents last year, in a bid to boost transparency across its business and make it easier for clients to automate their currency activities.

FX Connect Announces Technology Upgrades – Profit & Loss

FX Connect has announced a range of technology enhancements to its GUI, automated order routers and order blotter.

QuantHouse Adds Fenics US Treasuries – Profit & Loss

Trading solution provider QuantHouse has announced direct access to the BGC-owned Fenics US Treasuries platform through its FeedOS API and QuantLink network.

Credit Suisse Trading Losses Overshadow End of Thiam Turnaround – Bloomberg

Credit Suisse’s Global Markets business posted a larger-than-expected loss of 193 million francs in the fourth quarter, offsetting wealth management and investment banking results that beat estimates.

Former Deutsche FX Trader Sentenced for Fraudulent Activity – Profit & Loss

An Australian court has sentenced former Sydney-based Deutsche Bank FX options and futures trader Andrew Donaldson to 18 months imprisonment after he pled guilty to falsifying entries in Deutsche’s internal financial records and systems.

Market Savvy

Sterling Drops to Four-Week Low Before Brexit Debate in Parliament – Reuters

Sterling fell to a four-week low on Thursday ahead of a parliamentary debate on Brexit that could give investors a sense of which way a forthcoming vote on Prime Minister Theresa May’s deal with Brussels will go.

China Trade Data Props Euro above Three-Month Lows – Reuters

The euro held above a three-month low on Thursday as improved Chinese trade data and hopes of progress in China-US trade talks lifted risk sentiment, with the Australian dollar leading gains by more than half a percent.

Goldman Pushes Back Against Pushback on Short-Dollar Call – Bloomberg

Goldman Sachs is sticking to its guns in calling for the dollar to depreciate, despite criticism that its recommendation’s usefulness has come and gone.

Tale of Two Central Banks Casts Aussie-Kiwi Fight Into Spotlight – Bloomberg

The trade pitting the Australian dollar against its New Zealand peer is gaining unexpected prominence.