Fed Seeks to Ban and Fine Ex-Barclays Trader Accused of FX Manipulation – Bloomberg
Former Barclays trader Peter Little, who was accused of using electronic chat rooms to coordinate with bank traders allegedly trying to manipulate foreign-exchange rates, is being fined $487,500 by the Federal Reserve and facing a permanent ban from US banking.
Dollar Edges Higher After Hitting Three-Year Low – Reuters
The dollar enjoyed a small rebound as investors bought back the greenback following its plunge to three-year lows.
Will the Dollar Slide Continue? Analysts Weigh In – Financial Times (subscription)
As Americans celebrate Presidents Day, currencies strategists are debating whether the dollar’s tumble this year is set to continue.
Sterling Edges Down as Traders Eye Key Wages Numbers – Reuters
Britain’s pound inched down against the dollar and euro, with traders cautious ahead of key wages data due later in the week that should give them clues to the pace of monetary tightening from the Bank of England.
Yen Strongest Since US Election on Big Weekly Advance – Financial Times (subscription)
The yen cemented its place as the best-performing major currency this year with its biggest weekly advance in more than 18 months.
BOJ Watchers Don’t See Policy Change Soon, Despite Jumpy Market – Bloomberg
Economists who follow the Bank of Japan aren’t buying the idea that the central bank is near the point where it will begin to normalize its ultra-loose monetary policy.
BoE Paper Cites Opposite Impacts of Human and Automated FX Traders – Profit & Loss
A new working paper from the Bank of England analyses the role of automated trading (AT) in FX markets in a period containing the 15 January 2015 announcement by the Swiss National Bank that it had removed its EUR/CHF floor and finds that while AT “generated uninformed volatility”, human traders did the opposite.
Near Enough Is Not Good Enough – Profit & Loss (subscription)
The FX industry has been caught out by the advance of technology before, so although the report looks at the issue across broader financial markets, the FCA’s study on algorithmic trading should be essential reading for anyone senior in the industry.
EU Parliament Chief: Bespoke Financial Services Brexit Deal “Cannot Be Outcome” – City AM
Guy Verhofstadt, the EU parliament’s Brexit chief, has suggested that Britain cannot cherry pick the areas where it wants to make bespoke deals, and that any deal should ensure there “should be no competitive advantage for either the UK or EU”.
Brexit Shutout Fears Spur Asset Managers Into Action – Financial Times (subscription)
Half of UK investment companies are planning to establish European operations.
Not Necessarily Consolidation But… – Profit & Loss (subscription)
There isn’t much left up for grabs, but 2018 will see a deal in the platform world.
FCMs Warn EU Client-Clearing Rules Could Increase Risk – Risk (subscription)
Emir review calls for clearing access to be ‘non-discriminatory’ – might mean banks have to take risky clients.
SEC Suspends Trading in Three Companies Over Cryptocurrency Claims – Wall Street Journal (subscription)
Securities regulators suspended trading in the shares of three microcap companies that made what they said were questionable claims about their control of cryptocurrency and blockchain-related assets.
Supervision of Service Providers Engaging in Digital Currencies – Lexology
While some uncertainty exists with regard to the US regulatory regime that applies to public offerings of digital coins (ICOs), in the area of services related to digital currencies, regulations are expected to come into effect on June 1, 2018, within the scope of the Control of Financial Services Law.
Scrapping of Eonia Revamp Piles Pressure on ECB – Risk (subscription)
Dealers fear central bank’s new rate won’t arrive in time to create swap curve by 2020.
BestX Launches Trend Model – Profit & Loss
BestX has expanded its suite of best execution analytics with the launch of a new Trend Analysis module.
Bitcoin’s Latest Glitch: Double Charges at Fast-Growing Coinbase – Wall Street Journal (subscription)
Thousands of customers of Coinbase, one of the largest bitcoin-related firms dealing with the public, may have suffered repeated, incorrect duplicate charges on their digital-currency purchases, the firm said.
Countdown for Venezuela’s Crypto Currency “Petro” Begins – Legal Gambling
Crypto specialists and economists see the launch of Petro as a way to circumvent the sanctions imposed by the US and fight hyper-inflation in the country.
Asian Currencies Consolidate in Holiday-Thinned Trade; Peso Hits 11½ Year Low – Reuters
Most Asian currencies consolidated as low liquidity and an absence of currency market catalysts limited gains, but strong regional equity markets propped them up.
C$ Pulls Back from 11-Day High as Greenback Rallies – Reuters
The Canadian dollar weakened against its US counterpart, pulling back from an earlier 11-day high as the greenback broadly climbed and domestic data showed a drop in manufacturing sales.