Top Headlines

Ex-HSBC Currency Trader Deserves Decade in Prison, US Says – Bloomberg

US prosecutors say former HSBC Holdings currency trader Mark Johnson deserves a decade or more in prison based on his fraud conviction for front-running a $3.5 billion client order and lying on the witness stand at his trial.

Dollar Slips to One-Month Lows as Fed’s Views Disappoint – Reuters

The dollar dropped to a one-month low against a basket of currencies after the Federal Reserve issued a forecast for future policy that was less hawkish than expected.

One of Europe’s Biggest Funds Is Betting on the Dollar – Bloomberg

It’s cheap and just about every investor is short the currency. That makes the dollar a screaming buy for Allianz Global Investors.

Sterling Hits Seven-Week High Ahead of BoE Meeting; Retail Sales Jump – Reuters

Sterling rose to a seven-week high as retail sales beat expectations and traders prepared for a Bank of England meeting at which the central bank is expected to flag a rate rise in May.

Why the Canadian Dollar and Mexican Peso Have Diverged Recently – Wall Street Journal (subscription)

The currencies of Mexico and Canada have gone their separate ways this year, an unexpected outcome for two countries whose economies may be hurt by trade tensions with the US.

FMSB Details Trading Error Compensation Standard – Profit & Loss

The FICC Markets Standards Board (FMSB), has published its Transparency Draft Standard on Secondary Market Trading Error Compensation.

Europe’s Banks Told to Keep Planning for Full Brexit in 2019 – Financial Times (subscription)

The eurozone’s top financial supervisors have told banks to keep planning for Brexit without any transition arrangements, despite this week’s deal to delay the UK’s exit from the EU’s single market.

France Plans Rules to Lure Cryptocurrency Business – Financial Times (subscription)

France is planning a regulatory framework for companies that raise funds using cryptocurrencies in a bid to attract more financial start-up business, even as most countries continue to exercise caution over what has been dubbed the “digital wild west”.

CME Pursuit of Nex Reflects Shift in US Money Markets – Financial Times (subscription)

Deal would strengthen Chicago exchange’s hegemony of US dollar-denominated trading assets.

JSCC Margin Changes Ease Japan Interest Rate Pain – Risk (subscription)

Negative rates prompted switch in the CCP’s margin calculation model for interest rate swaps.

The Problem of Regulator Hastiness – Profit & Loss (subscription)

Not only should we be looking at the bank’s actions in the Fotheringhame case, there could also be a case for questioning the motivation and the approach of the New York Department of Financial Services (DFS) in this matter.

Regulatory News

UK Launches Task Force to Scrutinize Cryptocurrency Risks and Benefits – CNBC

The UK’s finance department, the Treasury, announced that the task force includes Britain’s central bank, the Bank of England and the Financial Conduct Authority watchdog.

Volcker Rule Change Backed in House Panel’s Dodd-Frank Remedy – Bloomberg

Bill would leave Fed as sole arbiter of trading restrictions.

US Swap Trading Overhaul May Reinforce Market Split, Users Warn – Risk (subscription)

New rules on trade execution likely to halt any unifying shift of liquidity to order books.

‘Sending Firm Messages’: BoE Studies How to Write Tough Letters to Banks – Financial Times (subscription)

Missives sent by the Prudential Regulation Authority to banks after their annual review are “more directive, forward-looking, complex and formal” than those sent by its predecessor before the financial crisis, according to a blog post by Bank of England staff.

Company News

Three Depart Nomura – Profit & Loss

Mark Rossi, managing director, Kurt Magnus, head of real money FX sales, and Paul Lynn, managing director, head of macro sales, EMEA, for rates, FX, EM and F&O, have all departed Nomura in London, according to market sources.

Euronext US Names Mandelzis as Non-Exective Director – Profit & Loss

Gil Mandelzis, CEO and founder of Capitolis, has been appointed as a non-executive director of Euronext US.

Bloomberg Unleashes ‘Kungfu’ on Chinese Dollar Bond Market – Waters Technology (subscription)

The data provider will continue developing new tools and will also be rolling out analytics tools for the offshore dollar Chinese credit market.

Survey Sees Advanced Tech as “Essential” to Fixed Income Trading – Profit & Loss

Liquidnet has published the results of a recent survey of global asset management firms that explores how MiFID II impacts the role of technology in trading corporate bonds.

Market Savvy 

Dollar Extends Losses, HKD Near 33-Year Low After Rate Hikes – Financial Times (subscription)

The dollar extended losses in Asia trading after falling in the previous session in reaction to the Federal Reserve’s rate rise and statement and the Hong Kong currency neared the weaker end of its trading range.

Turkey’s Lira, Down 3% in March, at Risk of ‘Depreciation Spiral’ – Financial Times (subscription)

Turkey’s currency has sustained a beating this month amid concerns that its economy is running too hot and is vulnerable to external shocks.

New Zealand Dollar Holds Gains After RBNZ Interest Rate Decision – Financial Times (subscription)

The New Zealand dollar held gains against the greenback after the US Federal Reserve hiked rates and New Zealand’s own central bank left interest rates unchanged.