Top Headlines

EU and UK Regulators Clash Over Post-Brexit Market Supervision – Financial Times (subscription)

European and British markets regulators clashed on how best to supervise financial markets after Brexit, throwing cold water on UK calls that a bespoke arrangement be designed once the UK leaves the European Union.

Pound Set for Biggest Losing Streak vs Euro as Brexit Plan Disintegrates – Reuters

Sterling fell broadly on Wednesday and was on track for its biggest ever losing streak against the euro as Prime Minister Theresa May’s last-ditch Brexit plan failed to win over either opposition lawmakers or many in her own party.

Turkey Burns Bridges with Markets as Costs of Lira Defense Mount – Bloomberg (subscription)

Turkey is paying the price for its pre-election efforts to tinker with the markets. As a controversial vote rerun looms, a barrage of interventionist policies by President Recep Tayyip Erdogan’s government has backfired, starving the economy of investment, fueling demand for foreign currency among households and businesses and further undermining the lira.

Robots to Take 400,000 Finance Jobs in the Next Decade – Financial News (subscription)

The number of people working across the global capital markets will fall by almost a fifth in the coming decade as a wave of artificial intelligence and automation hits the industry, according to estimates from consultancy Opimas.

Regulatory News

Exchanges Face Higher Hurdles in Boosting Data Fees – The Wall Street Journal (subscription)

The Securities and Exchange Commission dealt a fresh blow to stock exchanges’ lucrative business of selling data and high-speed connections. New guidelines from the regulator, released on Tuesday, will make it tougher for exchanges to boost fees for such services by requiring them to include detailed disclosures each time they seek to adjust a fee.

BOE Regulator Says Freedom from EU Could Improve Bank Oversight – Bloomberg (subscription)

Leaving the European Union could help Britain ward off emerging threats to the financial system, according to the top U.K. bank regulator at the Bank of England.

Mifid II Having Negative Impact on European Equity Liquidity Sourcing – The Trade

The introduction of MiFID II to Europe’s equities markets has made sourcing liquidity a harder task for the buy-side, according to a new report from Greenwich Associates.

Can Bankers Stop the Trading Book Killer? – (subscription)

A wipeout of the trading book has so far been avoided, but banks fear certain niche parts of the business could fall victim to the still-at-large suspect: the Fundamental Review of the Trading Book.

Crypto News

Crypto Assets Have Little Impact on Monetary Policy, Says ECB Team – FX Week (subscription)

Crypto assets do not have any serious implications for either monetary policy or the real economy, and they do not fulfil the functions of money, researchers from the European Central Bank have said.

Bitcoin Enthusiasts Undeterred by SEC Delay of ETF Decision – Bloomberg (subscription)

Bitcoin held most of Monday’s 13% surge as traders took in stride another delay by US regulators to approve a Bitcoin exchange-traded fund.

Trading Technologies Launches Connectivity to CoinFLEX – Profit & Loss

Trading Technologies is now offering connectivity to CoinFLEX, a cryptocurrency exchange for physically delivered futures, for traders outside the US.

Company News

P&L Talk Series with BNY Mellon’s John Arabadjis – Profit & Loss

John Arabadjis, head of markets macro strategy product and analytics at BNY Mellon, talks about the challenges associated with mining different data sources to produce new insights for investors.

Swift Announces Trials with ECB Instant Payment System – FX Week (subscription)

International payments consortium Swift has launched a trial to link its ‘global payment initiative’ to the European Central Bank’s Target Instant Payment Settlement (Tips) system.

LCH RepoClear Appoints UnaVista as Trade Repository Ahead of SFTR Implementation – The Trade

LCH’s RepoClear is to use UnaVista as its trade repository for reporting obligations under the Securities Financing Transaction Regulation

Argentex Reports Record Revenue, Profit Growth – Profit & Loss

Argentex, which provides FX services to corporate and private clients across EMEA, reported revenue and profit growth over the last 12 months.

Market Savvy

Yen, Franc Firm as Trade Tensions Fester; Pound Sinks – Reuters

The Japanese yen and the Swiss franc firmed on Wednesday as risk appetite remained weak in the backdrop of festering trade tensions between the United States and China.

Short Aussie, Long Yen Is the Hot New FX Bet for Trade War – Bloomberg (subscription)

Short Australia’s risk-sensitive currency against the haven yen. That is emerging as one popular currency trade as investors look to profit from the US-China trade war.

South Korea Mulls ‘Disorderly Movements’ After Won Dive – Financial Times (subscription)

South Korean officials are concerned that large-scale foreign exchange deals are creating distortions in trading of the country’s currency, as concern mounts over the won’s steep fall this year.