Top Headlines

Fed Holds Steady, Eyes Two Rate Hikes This Year – Reuters

The Federal Reserve held interest rates steady on Wednesday and indicated that moderate US economic growth and “strong job gains” would allow it to tighten policy this year, with fresh projections showing policymakers expected two quarter-point hikes by the year’s end, half the number seen in December.

Man With Longest History of Negative Rates Says We Can Go Lower – Bloomberg

No other central banker has more experience with negative rates than Lars Rohde. As governor of Danmarks Nationalbank, Rohde oversees a monetary policy institution that has kept its rates below zero for the better part of almost four years.

UK’s Osborne Delivers Annual Budget to Parliament – Reuters

British finance minister George Osborne delivered his annual budget statement to parliament on Wednesday.

Danish Central Bank 1; Currency Peg Speculators 0 – Financial Times

Hedge funds, eat your heart out. For all the speculation last year that Denmark would be cornered into a humiliating climbdown on its currency’s peg to the euro, it seems the central bank has had the last laugh.

German Government Welcomes Stock Exchange Merger if Strengthens Frankfurt – Reuters

The German government would welcome efforts aimed at a merger of Deutsche Boerse and the London Stock Exchange if they led to a strengthening of Frankfurt as a financial center, government spokesman Steffen Seibert said on Wednesday.

South African Currency’s Slide Extends on Political Tension – Financial Times

Political tensions are eroding the gains South Africa’s rand has reaped from the bounce in commodity prices, as a stand-off between finance minister Pravin Gordhan and the police sours investor confidence.

London Could Lose Its Euro Trading If U.K. Leaves EU – BloombergView

London’s future status as the financial capital of Europe is a key factor in the debate about whether the U.K. should leave the European Union. It would be a mistake for either side of the argument to underestimate quite how aggressively London’s competitors would attempt to wrest trading revenue away from the U.K. capital should the June 23 referendum vote in favor of what’s known as Brexit.

Regulatory News

FIA Comments on CFTC’s Proposed Rule on Automated Trading – MondoVisione

FIA filed a comment letter with the Commodity Futures Trading Commission (CFTC) in response to its proposed rule on automated trading.

Foreign Exchange Code Due in 2017: RBA – SBS

A new global foreign exchange code, laying out practices that are acceptable to foster transparency, is due to be release in May 2017, the RBA says.

Regulation Alone Will Not Change Bad Behavior on Wall St. – The New York Times

Perhaps trying to burnish his legacy on financial reform, President Obama has recently trumpeted his signature steps to transform Wall Street in the years since the financial crisis that confronted him as he began his term eight years ago.

Company News

Exchanges to Continue Diversifying in Response to Market Changes – Profit & Loss

Expect derivatives exchanges to continue diversifying away from their core business of providing a platform for trading, was the message from exchange heads at the FIA Boca conference.

Goldman’s Batting Average on Currency Calls is Taking a Beating – Marketwatch

Goldman Sachs’s currency team is on a losing streak.

Montréal Exchange to Launch Canadian Dollar IRS – Profit & Loss

Montréal Exchange (MX) is launching Canadian dollar interest rate swap futures. The contracts will be cleared at the Canadian Derivatives Clearing Corporation and will be available to trade on MX from September this year.

Market Savvy

Asia Jumps as Cautious Fed Lifts Risk Appetite, Dollar on Defensive – Reuters

Asian shares gained across the board on Thursday as risk appetite revived after the Federal Reserve reduced the number of interest rate hikes expected this year, while the dollar nursed substantial losses.

Pound Weakens as Investors Await BOE’s Interest-Rate Decision – Bloomberg

The pound fell versus most of its 16 major peers before Bank of England officials announce their latest interest-rate decision Thursday.

Brazil Currency Falls for 3rd Day on Cabinet Reshuffle Fears – Reuters

Brazil’s currency slid for a third successive day on Wednesday on fears that a Cabinet reshuffle could indicate a shift toward looser fiscal and monetary policy in the crisis-ridden economy.

Press Releases

Moscow Exchange Benchmarks Recognised as IOSCO Compliant

Moscow Exchange”s (MOEX) benchmarks for the currency, equity, bond and money market segments have been recognised as compliant with the principles of the International Organization of Securities Commissions (IOSCO), confirming the Exchange”s commitment to good global practices in financial benchmarking.

Compliance at a Crossroads

Accenture’s 2016 Compliance Risk Study calls for building the compliance function of the future.

Industry Events

FIA: Boca 2016, 15-18 March in Boca Raton, FL

FOW: Derivatives World, 12-13 April in Hong Kong

FX Week FX Invest North America, 12 April in Boston, MA

Profit & Loss Forex Network London, 14 April in London, UK

Profit & Loss Latin America, 20 April in Mexico City

ACI World Congress 2016 – Indonesia, 26-30 April, Jakarta

Eurofinance:  Asia Treasury, 18-20 May in Singapore

Profit & Loss Forex Network New York, 26 May, New York City

FIA: IDX 2016, 7-8 June in London, England

Profit & Loss Scandinavia, TBD September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL