Top Headlines

EU to Ease Derivatives Rules, Holds Fire on Euro Clearing Changes – Reuters

The burden of new regulation for derivatives markets would be eased and competition increased under proposals from the European Union’s executive, a document seen by Reuters showed, which omitted any moves to curb euro clearing in Britain after Brexit.

Dollar Edges Up, European Inflation Data Underpins Euro – Reuters

The dollar shrugged off early modest losses in holiday-thinned Asian trading while solid European inflation data underpinned the euro.

FX Traders Find Trump’s First 100 Days Are Good for Business – Bloomberg

President Donald Trump has given the $5.1-trillion-day currency market a shot in the arm.

How Much Higher Can the Euro Go? – Financial Times (subscription)

Single currency will stay in focus this week ahead of the final French election round.

Marine Le Pen Plays Down Anti-Euro Message – Financial Times (subscription)

Marine Le Pen has attempted to broaden her mainstream appeal ahead of the French presidential election by signalling that her flagship policy of leaving the euro is no longer a priority.

Hedge Funds Slash Bets Against Sterling – Financial Times (subscription)

Hedge funds have slashed their bets against the British pound to the lowest level since the Brexit vote in June last year, after the currency enjoyed its best month against the dollar in two years.

Japan’s Abe Cautions Against Brexit Regulation Cliff Edge – Reuters

Japan’s Shinzo Abe called on Prime Minister Theresa May to ensure a smooth transition for business as the United Kingdom leaves the European Union, to avoid a cliff edge where rules and regulations for firms change overnight.

Asia Markets Finish Monday Higher Ahead of Market Holiday in Europe – Financial Times (subscription)

While many Asia Pacific markets took the day off, the two major bourses still trading managed to close higher despite a downward drag from energy stocks hit by a slide in oil prices.

Mexican Peso Struggles to Recoup US Election Losses – Bloomberg

The Mexican peso’s more than 13 percent rally since Donald Trump took his oath of office and softened his trade talk hasn’t been enough to repair the battering it took after the election.

FX Options Clearing Platforms Finally Nearing Launch – Euromoney

Nine years after FXMarketSpace ceased operations, it appears 2017 will be the year when FX options clearing finally returns to the table – and forwards clearing is also set for a boost.

The Value of Insight – Profit & Loss (subscription)

More evidence that the Flash Crash was not triggered by nervousness over Brexit.

In the FICC of It: The Global Code of Conduct – Profit & Loss (subscription)

Podcast: Lots of people are talking about the Global Code of Conduct, but are they asking the right questions?

Regulatory News

Initial Full Senate Vote on SEC Chairman Nominee Set for Monday – Wall Street Journal (subscription)

President Donald Trump’s choice to lead Wall Street’s top regulator could be approved by the Senate as soon as next week.

How Trump and Brexit Could Change Global Bank Rules – Bloomberg

As two big economies chart a new course, some fear “regulatory arbitrage.”

A Dodd-Frank Fight with Billions at Stake Spurs GOP Friction – Bloomberg

Republicans’ latest effort to kill a Dodd-Frank provision that has cost banks billions of dollars is running into trouble.

The 93 Words That Could Unlock $200 Billion in Bank Capital – Wall Street Journal (subscription)

Proposed changes in the way banks calculate the size of their financial cushion against operational risk could free up a windfall.

Banks Seek Escape from Inter‑Affiliate Margin Burden – Risk (subscription)

Banks caught in the first phase of the global margin regime for non-cleared derivatives say a hefty chunk of their initial margin (IM) requirements are taken up by trades between entities within the same banking group.

Company News

European Bank Trading Slump Worsens; US Rivals Gain Share – Bloomberg

The gap between the biggest European banks and their US rivals is widening even faster than expected.

UBS Chief Says Britain Must Do More to Retain Banks After Brexit – Reuters

The head of UBS, one of Europe’s leading financial groups, has criticised the British government for failing to encourage banks to stay in London after Brexit, predicting that many would soon trigger plans to shift operations elsewhere.

Singapore Bourse Offers to Link Up with Chinese Futures Trading Venture – Financial Times (subscription)

SGX, the Singapore Exchange, is looking to further boost its Chinese derivatives business by offering to collaborate with a planned new local futures venture backed by the founders of one of China’s largest hedge funds.

Hackers Ran Through Holes in Swift’s Network – Wall Street Journal (subscription)

Payment-transfer network left banks largely responsible for their own cyberdefense; old passwords at Bangladesh’s central bank.

Rendon Opts for ‘Moral Victory’ and Follows Bailey Into Fashion – FX Week (subscription)

Crédit Agricole’s global head of FX options retires from FX and looks to launch a line of ‘gentlemen’s undergarments’.

Market Savvy

Brazil Real Weakens in Volatile Trading Amid Nationwide Strikes – Reuters

The Brazilian real weakened in volatile trading as traders assessed the implications of nationwide strikes led by Brazilian unions to protest President Michel Temer’s austerity measures.

C$ Hits New 14-Month Low as Uncertain Trade Outlook Weighs – Reuters

The Canadian dollar weakened against its US counterpart, retaining the defensive bias in the face of an uncertain trade outlook, while domestic data showed the economy stalled in February.

Rouble Moves Higher Despite Russian Rate Cut – Financial Times (subscription)

Russia’s central bank cut its key interest rate, citing the country’s continued emergence from a two-year recession – but the move failed to stop the rouble pushing higher.