Top Headlines

European Regulators Push Mifid II Deadline Back to 2018 ­– Profit & Loss

The European Commission has proposed a one-year delay to the implementation of MiFID II.

Yellen – Fed Not Likely to Reverse Course on Rates Despite Risks – Reuters

The Federal Reserve is unlikely to reverse its plan to raise interest rates further this year, but tighter credit markets, volatile financial markets, and uncertainty over Chinese economic growth have raised risks to the U.S. economy, Fed Chair Janet Yellen told U.S. lawmakers on Wednesday.

Currency Turmoil Casts Doubt on Forex Pegs – Financial Times (subscription)

Market turmoil often radiates from currencies and showdowns between central banks and aggressive investors. A burning question in early 2016 is how long countries such as China, Saudi Arabia and other can continue to rely on currency reservces to spare their currencies from a pronounced drop in value.

Stocks Decline With Crude as Rout Resumes; Yen, Gold Advance – Bloomberg

Stocks dropped around the world as investors shunned risk and crude extended losses, while the yen and gold gained.

Finance Ministers, Central Bankers Seen Taking Up Forex Stability – Nikkei Asian Review

Steps to address the turmoil in foreign exchange markets are expected to be on the agenda when finance ministers and central bank chiefs of the Group of 20 nations meet in Shanghai on Feb. 26-27.

Kyle Bass Steps Up Attack on China’s Currency – Wall Street Journal (subscription)

Investor Kyle Bass stepped up his attack on China’s currency, arguing in an investor letter distributed Wednesday that the second largest economy’s foreign reserves are “already below a critical level”.

City of London’s Relations With Eurozone Confounding Brexit Talks –

Draft European Council conclusions suggest that the relationship between eurozone countries and the City of London remains a sticking point in negotiations on a series of reforms to keep the United Kingdom in the EU.

To Stave Off Currency War, is it Time for a Coordinated Response to the Chinese Yuan? – MarketWatch

With investors fearing a further, significant fall in the value of China’s yuan currency could send more shock waves through international financial markets, some strategists think it’s time for global policy makers to come up with a coordinated plan that would help ease China’s transition to a weaker—and more free-floating—currency.

Sweden Cuts Rates Deeper Into Negative Territory, Says May Go Further – Bloomberg

Sweden’s central bank lowered its key interest rate even further below zero and said it’s prepared to use its full toolbox of measures as it battles to revive inflation and keep the krona from appreciating.

Regulatory News

The United States Commodity Futures Trading Commission and the European Commission: Common approach for transatlantic CCPsi

The European Commissioner for Financial Stability, Financial Services and Capital Markets Union, Jonathan Hill, and United States Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad today announced a common approach regarding requirements for central clearing counterparties (CCPs).

APRA Steps Up Culture Crusade as ASIC Rate Probe Heats Up ­– Sydney Morning Herald

The prudential regulator has called on bank chiefs to lift their game as a series of scandals engulf the banking system as it works with other regulators to improve corporate culture.

Company News

CME Appoints Global Head of FX – Profit & Loss

 Paul Houston is set to join CME Group in April as its new global head of FX, according to market sources.

BGC’s 2015 FX Revenues Up 44.4% YoY – Profit & Loss

 BGC Partners’ FX revenues grew by 44.4% in 2015 to reach $310.6 million, according to its end of year financial results. Additionally, its Q4 2015 FX revenues were $71.6 million, up 33.12% from the $56.7 million reported in Q4 2014.

Open-Source Blockchain Group Announces 30 Founding Members – Profit & Loss

The Hyperledger Project, an open source project dedicated to advancing blockchain technology, has announced its 30 founding members, a formal open governance structure and a series of technical updates to the project.

CLS Volumes Rebound from December, Down YoY – Profit & Loss

The average daily value of trades submitted to CLS in January was $4.84 trillion, up 8.3% from December 2015, but down 8.9% year-on-year.

Market Savvy 

Assessing Yellen’s Warning That Markets Pose a Threat to Economy – Bloomberg

Investors were pleased Wednesday when Federal Reserve Chair Janet Yellen said weakening stock prices pose a risk to the economy, convinced she won’t rush into more rate hikes. But how should everyone else feel with stocks down 10 percent in a year?

US Yield Curve Narrows to Eight Year Low – Financial Times (subscription)

The most accurate financial market predictor of recession is starting to blink more ominously in the US.

How Japan’s ‘Abenomics’ Reached an Impasse – Wall Street Journal (subscription)

Prime Minister Shinzo Abe’s program for economic revival has failed to generate a sustained upswing.

What’s Going On in the Markets? 5 Theories to Explain the Chaos – Wall Street Journal (subscription)

Fast money, China’s currency and oil prices are among factors influencing markets

Press Release

Website Technical Details for Planned Changes to the Effective Federal Funds Rate and Publication of the Overnight Bank Funding Rate

On January 6th, 2016, the Federal Reserve Bank of New York announced the implementation date of March 2nd for the planned changes to the effective federal funds rate (EFFR) and the first publication of the overnight bank funding rate

SEC Adopts Cross-Border Security-Based Swap Rules Regarding Activity in the U.S.

The Securities and Exchange Commission today voted to adopt rules that require a non-U.S. company that uses personnel located in a U.S. branch or office to arrange, negotiate, or execute a security-based swap transaction in connection with its dealing activity to include that transaction in determining whether it is required to register as a security-based swap dealer.

Industry Events