Top Headlines

Firm Data Pushes Euro Higher; Dollar Resumes Fall – Reuters

The dollar resumed its decline on Thursday, shrugging off Fed Chair Jerome Powell’s relatively confident comments on the US economy as survey figures suggested fears of a broadening economic weakness in Europe could be exaggerated.

Single-Dealer Platforms and Portals – Past & Future – Profit & Loss

There’s a new emphasis on serving internal, as well as external clients to improve sales efficiencies. The challenge, now that non-profitable client relationships have been exited, low-profit ones sent to a call centre, and the major ones served via API, is what to do with the group in the middle.

Asset Manager Mergers Make Peer-to-Peer Matching Even More Difficult (opinion) – Profit & Loss

There is a trend in the buy side, indeed business generally, that makes peer-to-peer matching on any reasonable scale even more impossible than I argued last week. The problem is scale, or rather, too much of it.

Financial Firms Spend Up to $3,000 Per Employee on Cybersecurity – Bloomberg

Big banks and other financial firms spend as much as $3,000 per employee to defend computer networks from cyber criminals, a survey found, as the industry remains the primary target of such attacks. That would translate to about $750 million annually for JP Morgan and HSBC each. 

Regulatory News

Giancarlo Targets Non-US Swap Risk Before Exit – FOW (subscription)

Before leaving his post the CFTC chairman plans to address the risk that non-US swap dealing activity poses to the US.

US-China Trade Deal in Sight After Progress on Tariffs, Market Access – The Wall Street Journal (subscription)

Negotiators make headway on market access and how to roll back tariffs; Chinese Vice Premier Liu He to return to Washington on May 8.

Prep Now for One-Day Lag in Eonia, Market Told – (subscription)

Users of Eonia-linked instruments should start preparing for a one-day lag that will hit the publication of the benchmark from October, and also think about repapering longer-term contracts, according to a member of a key working group.

Technical Issue Sees ESMA Delay Crucial MiFID II Systematic Internaliser data – The Trade

A technical issue has forced the EU financial regulator to delay the publication of crucial data for systematic internaliser determination that market participants need to comply with MiFID II in Europe.

CME, LCH Survive Extreme Stress Tests – FOW (subscription)

CFTC’s CCP stress test finds CME and LCH have sufficient pre-funded resources under stressed scenarios.

Crypto News

A Fraud or the Future? Bots and the Bitcoin Debate – Financial Times (subscription)

Cryptocurrencies seem to be marred by intellectual contradictions. Why does anyone think, for example, that crypto is a good payment mechanism or store of value when transactions are clunky and the value of a bitcoin has swung from $20,000 to $5,000 in the past 18 months? Conversely, the underlying blockchain technology is potentially very useful.

The SEC Must Solve its Cryptocurrency Custody Conundrum – Financial Times (subscription)

As blockchain technology grows in popularity, the US Securities and Exchange Commission faces a conundrum: how should it regulate the safekeeping or custody of a digital asset owned by an investment fund or managed account?

Current Crypto Ecosystem Not Yet Viable for Institutional Investors, Says Northern Trust – The Trade Crypto

The current ecosystem for trading cryptocurrencies is still not suitable for institutional investors to expand into the new asset class, according to Northern Trust’s technology expert.

Bakkt Looks to Scale with New Acquisition – Profit & Loss

Bakkt, a platform for buying, selling, storing and spending digital assets that was launched by Intercontinental Exchange, has acquired Digital Asset Custody Company, a firm that specialises in providing custody services for digital assets.

Coinbase Shifting Focus Due to Growing Institutional Investor Interest in Crypto – CoinDesk

America’s largest cryptocurrency exchange, Coinbase, is shifting its focus to serve the needs of a growing interest in crypto by institutional investors. This is the narrative coming from the company after some changes in the last 10 days.

Company News

FairXchange: Building New Relationship Foundations – Profit & Loss

The client experience is everything and with that in mind Colin Lambert takes a look at a firm seeking to deliver analytics with a difference, as well as the impact of this service on a client.

A Closer Look At: A Differentiated Algo Offering – Profit & Loss

Mauricio Sada-Paz, global head of e-FICC product and distribution at Barclays, discusses new algorithmic products available within the bank’s e-FX platform.

Three Senior EBS Managers to Step Down – Profit & Loss

Three senior executives at EBS are to leave the company as part of the previously announced plan to streamline the combined CME/EBS business following the exchange group’s takeover of certain assets of NEX Group last year.

Ashton Lands at Corellian Global Investments – FX Week (subscription)

Christopher Ashton, one of three former UK currency traders acquitted of price-rigging charges in the US, has joined Corellian Global Investments as an adviser and lead mentor in its training academy.

End of an Era as Roberts Retires – Profit & Loss

Micky Roberts has retired from Citi in London where he was on the hedge fund sales desk.

Market Savvy

Sterling Stands Tall Before BoE Rates Decision – Reuters

The British pound headed for a fourth consecutive day of gains on Thursday, buoyed by signs of a possible breakthrough in Brexit talks ahead of a central bank meeting.

Asia’s Worst Currency May Continue Its Slide, Deutsche Bank Says – Bloomberg (subscription)

The worst may not be over for the Korean won, according to Deutsche Bank.

Best Forecaster Says Buy the Aussie Dollar – Bloomberg (subscription)

The Aussie’s recent declines are overdone and it will strengthen about 5 percent to 74 US cents by year-end, said Juan G. Perez, senior foreign exchange trader and strategist at Tempus, part of the Monex Group that submitted the most accuratee prediction for the currency in Bloomberg’s first-quarter rankings.