Top Headlines

EU Agrees to Short Brexit Delay – The Wall Street Journal (subscription)

European leaders allowed Prime Minister Theresa May to postpone the Brexit deadline beyond next week, but warned the UK could still crash out of the trade bloc in mid-April unless the British political stalemate over the withdrawal agreement was broken.

What Factors Will Drive Allocation Decisions This Year? – Profit & Loss

Institutional allocators, wealth managers and family offices want the best performance possible from their portfolios, but what does “best” really mean for these firms?

The Scariest Hour in FX is Keeping Hong Kong Peg Defenders Busy – Bloomberg

The early part of the Asian trading day – when currency flash crashes tend to happen – seems to be when intervention happens too. All five instances the Hong Kong Monetary Authority has recently bought the local currency to keep it from falling below the weak end of its trading band have been around 5 a.m. to 6 a.m. local time.

The Fed’s New ‘Normal’ Looks Worrisome – The Wall Street Journal (subscription)

The Federal Reserve now believes its monetary policy is back to normal. That should worry you: if this is normal, then the Fed has precious little ammunition for when economic conditions again turn abnormal.

Regulatory News

Brexit: A Painful Lesson in the Limits of Sovereignty, and Integration – Financial News

Despite all the extra information about costs and complications, the debate over Brexit has not really advanced from 2016.

Q&A: Japan Regulator Aims to Be Glue for Fragmented Rules – Risk.net (subscription)

“Unintended and unnecessary” splits in regulation damage financial markets, says FSA’s Ryozo Himino.

Mifid II in Asia: Big Buyside Clashes with Regulators, Domestic Firms – Practice Insight (subscription)

Although global buyside firms support Mifid II’s unbundling rule across all their operations, various Asian regulators and smaller domestic investment firms say they’re unhappy with the new dynamic.

ESMA Adds New Venues to Register of Derivatives to be Traded On-Venue Under Mifir – EU News

The European Securities and Markets Authority (ESMA) has updated today the public register of those derivative contracts that are subject to the trading obligation under the Markets in Financial Instruments Regulation.

Crypto News

Elwood Offers a New Way to Invest in Digital Assets – Profit & Loss

London-based Elwood Asset Management, which is backed by Brevan Howard co-founder, Alan Howard, has partnered with Invesco to launch its first product aimed at investors looking for exposure to digital assets, the Invesco Elwood Global Blockchain UCITS ETF.

ICE’s Bitcoin Futures Launch Hits Regulatory Road Bump – Financial News (subscription)

Government concerns about cryptocurrencies have snarled a plan by the owner of the New York Stock Exchange to launch the first futures contract that would pay out in bitcoin.

Blockchain Enables Payments to be Faster and Cheaper: JP Morgan – CNBC

Ron Karpovich of JP Morgan says there is a difference between trading cryptocurrencies and using technology to enhance payment infrastructures. The bank sees the technology as a means of doing things faster and cheaper, he says.

Custody in a Digital Asset World – The Trade Crypto

Institutional money requires institutional-level custody. Third-party custody of traditional assets is an established and secure service offering, but these services are not readily applicable to digital assets.

Company News

Refinitiv Launches Cloud-Based FX Tool – Profit & Loss

Refinitiv has introduced Deal Tracker as a Service (DTaaS), a Cloud archiving and compliance tool for FX post-trade flow sourced from Refinitiv FXT.

SIs Add Value, But No Evidence for Speed Bumps – Global Investor (subscription)

Panellists say there is no evidence as yet to demonstrate the value of speed bumps.

JPX-TOCOM Merger Agreement Expected by End-March – Regulation Asia

JPX and TOCOM plan to merge this year to create an all-in-one bourse that handles stocks, derivatives and commodities futures, but challenges will remain even after a final agreement is reached.

ISDA Publishes Full Version of Derivatives Lifecycle Blueprint – Regulation Asia

The ISDA Common Domain Model for interest rate and credit derivatives has been published, part of a push to standardise global derivatives trading and automate market practices.

Market Savvy

Sterling Recovers as PM May Gets ‘Last Chance’ for Orderly Brexit – Reuters

Britain’s pound held above $1.31 on Friday after recovering overnight when European Union leaders gave Prime Minister Theresa May a two-week reprieve, until April 12, to decide how to leave the European Union.

Euro Set for Biggest Drop in Two Weeks on German PMI Miss, Yields – Reuters

The euro tumbled more than half a percent on Friday below the $1.13 level as a big miss in German manufacturing survey data and falling bond yields prompted traders to cut their positions.

Dead Calm in Markets Unsettles Wall Street as Fed Vows No Action – Financial Times

Volatility across several major asset classes has fallen to its lowest level in years as both the Federal Reserve and European Central Bank indicate they will hold off from raising interest rates in the face of waning economic momentum.