Top Headlines

Euro Heads for Worst Quarter on Record – Reuters
The euro fell against the dollar on Tuesday, leaving the single currency on track for its worst quarter ever as investors bet on an increasingly divergent monetary policy outlook between the eurozone and the United States.

Biggest Loser from the Strong Dollar: Emerging Markets – CNNMoney
On top of currency woes, developing countries are facing political problems, fears of a Federal Reserve rate hike and the commodity bust. The result is that investors are getting out of dodge.

China’s Yuan Posts Biggest Monthly Advance Since December 2011 – Bloomberg
China’s yuan posted its biggest monthly advance since December 2011 as policy makers stepped up efforts to make it a global reserve currency and took measures to boost the property market.

Bank of England to Stress Test Banks for Global Slump Scenario – Reuters
Britain’s seven biggest lenders will have to show they can cope with a global economic slump triggered by a sharp slowdown in China and a crash in the eurozone in this year’s round of stress tests conducted by the Bank of England.

Global FX Committees Release New Market Guidelines – Profit & Loss (free story)
The Australian FXC, Canadian FXC, ECB’s FX Contact Group, Hong Kong Treasury Markets Association, London FX Joint Standing Committee, New York FXC, Singapore FX Market Committee and Tokyo FX Market Committee have approved new guidelines at the annual global FX committees meeting held in Tokyo on 23 March.

Time to Unbend the Pipes that Carry the Money – Financial News (subscription)
Corporate treasuries across Europe look set to change the way they manage their payments, liquidity and foreign exchange – as well as how they work with their banking partners.

Norway to Sell NOK 700 Million of FX Per Day in April – Reuters
Norway’s central bank will sell foreign exchange equivalent of 700 million Norwegian crowns per day in April because the government’s transfers to its $870 billion sovereign wealth fund have been smaller than earlier expected and the budget is spending more of its oil related income.

Turkey Ready to Settle Deals with Russia in Local Currencies – Economy Minister – RT
Turkey’s Ministry of Economy is to consider using local currency, either the Russian ruble or Turkish lira, in major investment projects with Moscow.



Regulatory News

European Parliament Backs Benchmark Rules – FOW (subscription)
The European Parliament’s economic affairs committee (Econ) voted Tuesday to accept new legislation to enhance the robustness and reliability of market benchmarks to better guard against future manipulation. The committee voted to accept the draft legalisation with an overwhelming majority of 47 to 10, removing another block before it goes before entire parliament for approval. The European Commission proposed the original draft law in September 2013.

Lack of Clearing Members Could Increase Counterparty Risk, says NY Fed – Profit & Loss (free story)
The Federal Reserve Bank of New York has released a paper warning that too few participants in a central clearing system could increase counterparty risk.

ECB, Bank of England Reach Accord on UK Clearers Handling Euro Trades – Reuters
The European Central Bank and the Bank of England have reached a deal that strengthens the financial backing of British clearinghouses in their handling of euro-denominated securities, ending a long-running legal battle.

ESMA Publishes Updated EMIR Q&A
The European Securities and Markets Authority has today issued the 12th update of its Q&A document on the implementation of the European Markets Infrastructure Regulation. The update includes further guidance on the authorisation of CCP services, the clearing obligation and the Regulatory Technical Standards (RTS) on direct, substantial and foreseeable effect of contracts within the Union.



Company News

Profile: Citadel’s Hamill on the fight for swaps market share – Risk Magazine (subscription)
The arrival of swap execution facilities was supposed to herald a new era of swap market competition. Citadel Securities was the first new entrant to take the challenge, and its fixed income execution head talks about how the firm is trying to make its mark.

Global Head of FX James Ellery Parts Ways with JP Morgan – Forex Magnates
JP Morgan has a key vacancy to fill, following the recent departure of its global head of foreign exchange, James Ellery.

LCH.Clearnet Outlines Stress Testing Plans – The Trade
LCH.Clearnet has proposed a stress testing framework for central counterparties in order to increase transparency into the risk management systems within clearinghouses.

Deutsche Boerse, China’s CCB Agree Strategic Partnership – Reuters
Germany’s Deutsche Boerse and China Construction Bank have agreed to examine potential for cooperation in their respective geographical markets.



Market Savvy  

FX Flows: Neutrality Sought
Positions have stabilised ahead of a holiday week. With the exception of the Canadian dollar, G10 markets failed to show a clear directional bias. Volumes have also dipped below recent averages as investors appear reluctant to establish fresh positions ahead of a holiday week, even with US payrolls due. In addition, the prospect of Greece-related headlines running in the background ahead of key redemption dates in mid-April may have also dampened risk appetite, which until recently had been enjoying a minor recovery after the March FOMC decision. In emerging markets, KRW buying was the only stand out flow.



Press Releases

RMB Internationalisation is Increasingly Fuelled by Offshore Countries Beyond Hong Kong: Swift
SWIFT’s RMB Tracker shows that offshore countries, excluding Hong Kong, represent 25% of RMB payments compared to 17% two years ago.

SGX Consults Public on Introduction of Position Accounts for CDP Clearing Members
Singapore Exchange (SGX) is consulting the public on the proposed introduction of Position Accounts for Clearing Members of the Central Depository (CDP) as an operational step to further improve the post-trade environment of the Singapore securities market.



Industry Events