Top Headlines

Ex-HSBC Forex Trader Goes on Trial in New York – Financial Times (subscription)

The British banker on trial in the US on charges he schemed to front-run a $3.5bn currency deal “threw his client under a bus to make more and more money”, prosecutors argued.

CFTC Fines Citigroup Over Swaps Reporting – Wall Street Journal (subscription)

Regulators ordered Citi to pay $550,000 for failing to report necessary identifying information for swap trades.

Euro Hits One-Month Low After Worst Day of 2017 – Reuters

The euro slipped to a one-month low on after its worst day so far this year, as investors worried that months of coalition talks in Germany could weigh on the economy and would make closer euro zone integration difficult.

Sterling Hits 10-Week High Against Weakening Euro – Reuters

Sterling hit a 10-week high against the euro, as worries over a period of political uncertainty in Germany following elections on Sunday continued to drag the single currency lower.

Brexit Trades: Not as Simple as They Looked – Financial Times (subscription)

Sticking with some popular Brexit trades since the EU vote has proved painful.

Dollar Jumps to One-Month High vs Euro Ahead of Yellen Speech – Market Watch

The dollar climbed against most other currencies, rising to a one-month high against the euro as traders continued to digest the German election and looked ahead to a speech on monetary policy from Federal Reserve Chairwoman Janet Yellen.

What Makes a Good FXPB Provider? – Profit & Loss (subscription)

In a recent survey by Profit & Loss, 29% of respondents cited balance sheet strength as the most important factor when selecting a prime service provider.

Brexit Conundrum: What to Do with Thousands of Derivatives Contracts – Wall Street Journal (subscription)

Leaving the EU will mean redrafting the contracts one-by-one – or getting EU legislation to protect the deals.

‘Crypto’ Hedge Funds Spring Up in Crowded Field – Financial Times (subscription)

Managers lured by soaring value of bitcoin and other cryptocurrencies.

Regulatory News

CFTC Looks to Blockchain to Transform How It Monitors Markets – Wall Street Journal (subscription)

Agency now struggling to manage data would be able to see firms’ trading activities in real time – but plan would have to survive procurement process.

Banks Lobbying to Stem MiFID’s Spread Spark a US Client Revolt – Bloomberg

Wall Street brokerages are quietly lobbying regulators to ensure new European rules that will upend banks’ investment research operations don’t spread to America.

Clayton Says SEC Needs ‘Substantial Time’ to Unravel 2016 Hack – Financial Times (subscription)

Criminal hackers gained access to the Securities and Exchange Commission’s online corporate filing system in 2016 by exploiting “a defect in custom software,” SEC Chairman Jay Clayton plans to tell the Senate Banking Committee.

US Regulators Stick with Existing Policy for ‘Systemic’ Firms – Reuters

A panel of US regulators decided after meeting on Friday to stick with its existing policy for stricter rules on a handful of large financial institutions it deems “systemically important.”

Japan’s Regulators Are Putting Bitcoin Exchanges Under Heavy Surveillance – Fortune

Japan’s financial watchdog will soon pay very close attention to the internal systems of exchanges for virtual currencies such as bitcoin.

Company News

FastMatch Launches FX Consolidated Tape – Profit & Loss

FastMatch has launched a consolidated tape for FX in a bid to bring more transparency to the market.

New Paper Advocates for Managed Futures – Profit & Loss

Portfolios that include managed futures funds perform better and reduce more risk than those without them, according to research jointly published by the Alternative Investment Management Association (AIMA) and Societe Generale.

Barclays Joins CLS Blockchain Consortium in Search of Swift Alternative – Coin Desk

Barclays has become the latest major financial institution to join the foreign exchange-focused blockchain consortium founded by cash settlement system provider CLS Group.

SDRs Want to Put Onus on Counterparties to Check Swap Data – Risk (subscription)

CME, ICE and DTCC oppose duty to reach out to non-reporting party for data verification.

Market Savvy

China’s Yuan Rebounds as Market Gets Cautious About Rapid Losses – Reuters

China’s yuan rebounded against the dollar, clawing back losses from the previous session as market participants grew wary of regulators’ tolerance for recent selling after the currency breached a key level.

Havens Off Highs But Trade Stays Cautious – Financial Times (subscription)

Among haven currencies, the Swiss franc is 0.2 per cent weaker at SFr0.9687 per dollar, while Japan’s yen is 0.1 per cent stronger at ¥111.60 per dollar.