Top Headlines

Financial Services Caught in Web of Brexit Regulation – Bloomberg

Though London risks losing derivatives clearing in the long term, fintech sees a rosier future. Financial-services negotiations have taken a back seat to trade, yet the industry remains the country’s biggest export.

Weird Things Keep Happening in the Markets – Financial Times

The 2008 crisis and the reforms that followed have sparked a profound behavioural shift.

Nomura Slashes FX Headcount in $1 Billion Cost-Cutting Drive – FX Week (subscription)

The impact of the cuts fall mainly on the emerging markets FX team, where the Japanese bank is scaling back its business while retaining its capabilities in the currencies space. But Nomura also indicated it will “downscale” its G10 FX team.

EU Blockchain Group Launches With SWIFT, Ripple Onboard – CoinDesk

SWIFT, IBM, Ripple and around 100 other firms and organizations have joined a new blockchain association to promote adoption of the technology across the EU.

The Bankers and Traders That Are Bracing for a Rough Q1 – eFinancialCareers

With the first quarter in the books, analysts are revising their expectations on how bankers and traders fared during the first three months of the year. In short, most had a difficult Q1.

Regulatory News

ESMA Publishes MiFID II Supervisory Briefing on Appropriateness and Execution-Only – EU News

The European Securities and Markets Authority (ESMA) has today published an updated version of its supervisory briefing on MiFID II appropriateness requirements.

FCA Has ‘Large Number’ of Investigations in Pipeline – FT Advisor

Speaking at the Global Investigations Review Live event in London Mark Steward said some of the investigations were entering “important phases” and tackling “very serious” issues.

Trump Says US-China Trade Deal Close, but No Summit Plans Yet – The Wall Street Journal (subscription)

President says ‘this is an epic deal, historic – if it happens,’ but Trade Representative Lighthizer says major issues remain.

Crypto News

Has Bitcoin Bottomed? Here’s How It Compares With Past Bubbles – Bloomberg

Only four months ago, Bitcoin seemed on the verge of extinction as investors fled one of history’s biggest bubbles. But after the steepest two-day rally since the height of crypto-mania in 2017, more and more market observers are asking the same question: Has Bitcoin bottomed out?

10 Ways Central Banks are Experimenting with Blockchain – World Economic Forum

Although central banks are among the most cautious and prudent institutions in the world, a new white paper published by the World Economic Forum indicates that these institutions, perhaps surprisingly, are among the first to implement blockchain technology.

Talking Disintermediation by DLT with DTCC’s Rob Palatnick – Regulation Asia

DTCC (the Depository Trust & Clearing Corporation) has been studying distributed ledger technology and starting to apply it to upgrade some of its infrastructure, such as in an initiative to re-platform its Trade Information Warehouse.

Crypto-Tracker Debuts New Securities as Digital Coins Rally – Bloomberg

The creator of the first exchange-traded product that tracks Bitcoin is introducing versions for rival tokens. Stockholm-based XBT Provider is rolling out trackers that mimic the price of Litecoin and XRP, the Ripple token, to tap into an investor public that wants the added protection of a regulated exchange.

Digital Asset Custodian to Launch Platform Supporting Cryptocurrencies and Tokens – The Trade Crypto

Singapore-based digital asset custodian Onchain Custodian has announced it is to launch its digital asset custody platform, SAFE.

Active Digital Wallets on the Rise Even Before This Week’s Bitcoin Spike – Bloomberg

Small-fry investors were already stirring before this week’s surge in digital coin prices. In the prior two weeks, a high number of electronic storage accounts known as digital wallets holding Bitcoin became active, according to market intelligence firm Flipside Crypto.

Digital Asset Goes Open Source as Firm Eyes Closer Ties With Hyperledger – CoinDesk

Blockchain startup Digital Asset is open sourcing its Digital Asset Modelling Language (DAML), the beating heart of projects like the partial re-plumbing of the Australian Securities Exchange.

Company News

LCH Adopts Genesis Automated Workflow Solutions for ForexClear, SwapClear and CDSClear – The Trade

London-based clearinghouse LCH has implemented three new workflow automation solutions from software provider genesis, across its foreign exchange, swaps and CDS clearing lines.

Inside JP Morgan’s Two Most Interesting Electronic Trading Teams – eFinancialCareers

JP Morgan spends a huge $11.5bn on technology annually. Although the bank wants to get a grip on tech spending this year by, for example, building standardized and reusable application programming interfaces, it also acknowledges that technology is the way forward, particularly in sales and trading.

TraderTools to Roll Out Algo Suite for Regional Banks – FX Week (subscription)

TraderTools is planning to introduce a suite of algorithms later this year, designed to enable regional market-making banks to act like high-frequency traders in their own local currencies.

CTA Performance Improves as Trends Return to Markets – Profit & Loss

All of the Societe Generale CTA indices posted positive performance in March, with trend followers in particular performing well.

JP Morgan Clears First Repo Under New DTCC Sponsor Programme – The Trade

JP Morgan has become the first member under the DTCC’s new fixed income sponsor member programme to clear a repo transaction.

Virtu Financial and MarketAxess Join Forces on Global ETF and Fixed Income Project – The Trade

The collaborative project will deliver global, multi-asset and multi-currency coverage to MarketAxess and Virtu RFQ-hub clients.

Bloomberg Plans to Exit SSEOMS, KYC Business Lines – WatersTechnology (subscription)

Sources say that this will allow the information giant to focus on more valuable business lines.

Put Germany’s Big Banking Merger Out of Its Misery – Bloomberg

Nobody likes Deutsche Bank and Commerzbank’s planned merger. The alternatives look more palatable.

Market Savvy

Sterling Unfazed By UK Request for Brexit Delay – Reuters

Sterling strengthened on Friday as Prime Minister Theresa May asked the European Union to delay Brexit until late June, but its tentative moves reflected continued unease among investors.

Trade Optimism Supports Dollar Ahead of US Jobs Report – Reuters

Optimism for a US-China trade deal helped the dollar hit a three-week high against the yen on Friday, although moves in broader foreign exchange markets were limited as investors saw a lot of headlines but no conclusions out of the trade talks.