Top Headlines
Federal Reserve’s ‘Momentous’ U-Turn Prompts Puzzlement – Financial Times
After putting traders on notice six weeks ago to expect further increases in US interest rates in 2019, the Federal Reserve has executed one of its sharpest U-turns in recent memory.
Interesting Take-Aways from the FX Committee Surveys (opinion) – Profit & Loss
Aside from what one news service decided was the headline – more like click bait – “FX Volumes Slump Globally” (yes, there was a dip from April, but on a more considered year-on-year basis, FX turnover is up 8.9% at the third highest mark ever), there were a few interesting snippets in this week’s FX committee surveys. The two that stood out were the surge in RMB trading and a resurgence for voice brokers in the UK.
The Top Places to Work in Fixed Income Trading – eFinancialCareers
With the first full month of 2019 nearly in the books, banks are seeing renewed optimism in fixed income markets, according to a new report from Greenwich Associates.
An Upstart FX Market Maker Is Looking to Ramp Up in US Equities and Treasuries – Bloomberg
XTX wants to increase its footprint and change the rules of the game.
Regulatory News
MiFID II SI Regime for Derivatives Delayed for a Second Time Until 2020 – The Trade
The systematic internaliser (SI) regime for derivatives under MiFID II in Europe has been postponed by the EU markets regulator, marking the second delay to implementation since MiFID II came into force in January last year.
EU Ready to Push UK Near Point of No-Return on Brexit, Diplomats Say – Bloomberg
The European Union is prepared to take Brexit down to a last-minute, high-stakes summit rather than cave into UK Prime Minister Theresa May’s demands over the next few weeks, diplomats said.
- Barclays May Transfer 5,000 Clients to Ireland in $217 Billion Brexit Move – Bloomberg
- The Brexit Bill: Here’s the Damage So Far – Bloomberg
Regulatory Fragmentation Heightens Derivatives Market Risk: ISDA – Regulation Asia
The International Swaps and Derivatives Association (ISDA) has released a new paper highlighting jurisdictional differences in the implementation of global standards for derivatives, and recommending a series of steps that can be taken to address regulatory fragmentation.
EU-Japan Data Sharing Agreement Takes Effect – Regulation Asia (subscription)
The EU adequacy decision on Japan creates the world’s largest area of safe data flows and serves as an example for future partnerships and global standard setting.
Crypto News
Crypto Brokers Ignore Market Collapse to Woo Pro Investors – Financial Times
New ways for institutional investors to punt on cryptocurrencies are still springing up, despite a collapse in prices and signs that hedge funds are abandoning the once-promising new asset class.
Crypto Funds Morph Into Venture Capitalists Shunned in ICO Boom – Bloomberg
As cryptocurrency prices continue to languish, hedge funds investing in digital assets are increasingly starting to look more like venture capitalists.
Crypto Derivs Growth Challenging without ETFs: Cboe – Global Investor (subscription)
Crypto derivatives growth will be challenging while regulators feel uncomfortable with crypto ETFs, Cboe COO says.
The Bitcoin Market is in Turmoil, But Crypto Lenders are Thriving – Business Insider (subscription)
Genesis Global Trading, the New York-based crypto trading shop, said its lending unit lent out digital assets of more than $1.1 billion in 2018.
Company News
John Phizackerley Receives No Further Payout from TP ICAP – Financial Times
Mr Phizackerley departed last summer amid rising tensions with his chairman Rupert Robson over the cost savings from the integration of the £1.3bn acquisition of rival ICAP’s voice broking business.
FXall Rolls Out Trade Analytics Tool – Profit & Loss
Refinitiv has formally launched Trade Performance Analytics (TPA), a new analytics service for users of FXall. “TPA empowers users to assess the quality of their historical execution, conduct like-for-like comparisons of liquidity providers, as well as make better informed trade planning decisions,” Refinitiv says.
Blockchain in FX: A Solution That’s Found a Problem? – Profit & Loss
A closer look at the distributed ledger technology solution that HSBC has deployed for settling FX transactions.
Akant Set to Retire From BNP Paribas AM – Profit & Loss
Adnan Akant has announced his retirement from BNP Paribas Asset Management, where he was head of currencies, based in New York.
Fyda Swaps BBH for Northern Trust’s Global FX Business – Profit & Loss
Paul Fyda has joined Northern Trust as head of local markets in its foreign exchange business. Based in New York, he will work with Northern Trust’s FX desks in the Americas, Europe, Middle East and Asia Pacific regions.
Market Savvy
Citi: Time to Add to EM FX Risk, Focus on CEEMEA High-Yielders – Reuters
Investment bank Citi said on Thursday it was time to raise emerging market FX risk in portfolios, citing the aggressive compression in real bond yields in the United States.
Sterling Steady as Investors Focus on February Brexit Vote – Reuters
The pound steadied on Thursday as Britain prepared to resume negotiations with the European Union over how to resolve the issue of Irish border arrangements after Brexit.
Dollar Falls, Euro Lifted as Fed Turns Cautious – Reuters
The dollar weakened on Thursday after the Federal Reserve pledged to be patient with further interest rate hikes, a move that lifted the euro and the Australian dollar.
Central Bank Gold-Buying Reaches Half-Century High – Financial Times
Central bank buying of gold reached its highest levels for almost half a century last year as Russia, Turkey and Kazakhstan boosted purchases to shift their reserves away from the US dollar.