Top Headlines

Euro Jumps as Investors Cheer French Election Results – Wall Street Journal (subscription)

Analysts and investors see increased appetite for European assets.

Charts Show Traders Writing Down Chances of a Le Pen Presidency – Bloomberg

Markets trimmed their hedges against a Marine Le Pen victory, judging that the outcome of France’s first-round presidential poll reduced the odds of her winning office and seeking an exit from the euro.

Sterling Dives Against Euro After French Election – Reuters

Sterling fell sharply against the euro as investors favoured Europe’s currency over Britain’s in a wave of relief sweeping financial markets following results of the first round of France’s presidential election.

Dollar Reverses Gains Ahead of French Election – Wall Street Journal (subscription)

US currency had risen earlier on fresh hopes Donald Trump will be able to push through tax cuts.

Report Shows Growth in FX Derivatives Market…Or Does it? – Profit & Loss

The World Federation of Exchanges (WFE) has released a new report showing that trading in currency derivatives grew 10.4% year-on-year in 2016, but this figure doesn’t quite tell the whole story.

CME Europe, What Went Wrong? – Profit & Loss

On the exchange side rather than the clearing side, one issue seems to be that, rather than offering new contracts, CME Europe was replicating FX contacts that it already offered via its US infrastructure.

Lessons in Listening to Client Demand – Profit & Loss (subscription)

The CME Europe story is a good parable for the changing nature of the FX market.

How Does FX Get Back to Growth? – Profit & Loss (subscription)

After the Bank for International Settlements (BIS) Triennial FX Survey revealed last year that the industry has shrunk in terms of notional volumes for the first time in 15 years, speakers at Forex Network London outlined the factors that could help this market get back to growth.

De-Mystifying Blockchain – Profit & Loss (subscription)

Speakers at Profit & Loss’ Forex Network London tried to “de-mystify” blockchain technology as they talked about its practical applications within the financial services industry.

Nigeria Central Bank Introduces FX Trading Window for Investors – Reuters

Nigeria’s central bank will now allow investors to engage in foreign exchange trading at rates the buyers and sellers set, a move it hopes will increase the amount of dollars available in Africa’s biggest economy.

Regulatory News 

Mnuchin Urges IMF to Enhance FX Surveillance – Reuters

US Treasury Secretary Steven Mnuchin called on the International Monetary Fund to enhance surveillance of its members’ exchange rates and external imbalances, as large trade imbalances would hamper “free and fair” trade. 

Trump Puts Two Dodd-Frank Powers on Hold in Symbolic Move – Wall Street Journal (subscription)

The powers put on the shelf during a 180-day review.

Brexit May Not Stop the EU Having Control Over the City – Business Insider

Finance companies want the government to let Europe’s top court remain supreme in the City post-Brexit, in exchange for continued access to the EU’s Single Market.

SEC Should Write Fiduciary Rule, Acting Chairman Says – Wall Street Journal (subscription)

Rule governing the advice that brokers provide retail investors has been handled by Labor Department.

ESMA Aims for Level Playing Field with Trade Repository Fee Changes – Global Investor (subscription)

European securities regulator says that refining fee structures will ensure a level playing field for trade repositories operating under Emir and Sftr.

Company News

Northern Trust Outlines New e-FX Growth Strategy – Profit & Loss

The bank has implemented a new e-commerce strategy, which Torrey explains by initially tracing the evolution of Northern Trust’s FX business.

Citadel Securities Steps Up Push Into Disclosed Trading Space – FX Week (subscription)

Non-bank market-maker hires three to expand its direct client business and European coverage.

Global Blockchain Market to Hit $5.4 Billion by 2023 – Global Custodian

New research says global blockchain market could grow by up to 58% over the next six years.

TradingScreen Signs Commercial Deal with Tethys Technology – Automated Trader (subscription)

TethysAlgo suite provides TradingScreen customers broker-neutral algos for equities, futures, options and FX.

Market Savvy

Emerging Stocks, FX Jump as French Vote Whets Risk Appetite – Reuters

Emerging assets shifted up a gear as markets cheered the French election results, pushing developing stocks to a near-three week high and sending most emerging currencies surging against the dollar and euro.

CEE Stocks, FX Gain in Relief Rally After French Vote – Reuters

Central European stocks and currencies rose after centrist Emmanuel Macron won the first round of France’s presidential elections, taking a big step towards becoming president.

Canadian Dollar Weakens After Inflation Data Miss Views – Financial Times (subscription)

The Loonie came under selling pressure after fresh data showed an unexpectedly sharp cooling in Canada’s consumer price growth.