Top Headlines 

Forex Scandal Comes Down to Case Against the ‘Cartel’ – Financial Times (subscription)

The currencies market goes on trial this week in a process that has whittled down systemic poor behaviour, years of investigations and billions in bank fines to three former London traders. They face a court in New York and a potential sentence of 10 years in jail. 

Brexit Financial-Market Threat Leads EU Watchdogs to Step Up – Bloomberg

After months listening to the UK warn about the risks posed by a no-deal Brexit, European Union financial regulators are now stepping up plans to avert a market meltdown.

An Examination of CFTC’s Charges Against TFS-Icap – Profit & Loss

If such a huge percentage of trades were fake, how on earth did the brokers get away with it for so long without being found out? I get they used the infamous “double hit” excuse (or the other trader was away from the desk, therefore the price was “stale”) but even that should have worn thin after a while and traders would have looked elsewhere.

US Dollar Dependence Sets Markets for `Liquidity Crunch’ – Bloomberg

The current run-up in USTreasury yields and the dollar poses a major stress test for a global financial system that has become even more dependent on the American currency since the last credit conflagration.

Targeting Talent: The Industry’s New Battleground – The Trade

Attracting and retaining the brightest talent available has become the new battleground for investment banks as new compliance obligations and technology developments create warring factions desperate to secure the best personnel possible.  

Regulatory News

Regulation: Mifid II Starts to Bite – Euromoney
As Mifid II beds down, its impact on the global fixed income research industry is already being felt. There are clear signs that investors are less reliant on research and are using fewer providers than before.

SEC Finally Moves Forward on Single-Name CDS Dealer Rules – (subscription)

More than eight years after the passage of the Dodd-Frank Act, the Securities and Exchange Commission is at last nearing completion of rules governing dealers in single-name credit-default swaps – but only after another round of consultation.

Do You Believe in Life after Libor? – Euromoney
Progress has been made on possible replacements for Libor as a reference rate for financial instruments. But they don’t all have the market thrilling to the prospect of a Libor-less world.

BAML Exec Fears ‘Systemic Risk’ if Margin Issue Not Resolved –

Failure to exempt nearly 1,000 end-users from posting and receiving initial margin from 2020 could introduce unnecessary systemic risk into the over-the-counter derivatives market, according to a senior executive at Bank of America Merrill Lynch.

EU Banks’ Capital Requirements to Increase 17% under Basel III Reforms – Global Investor (subscription) 

Basel III reforms would result in a 16.7% increase of European banks’ Tier 1 minimum required capital. 

Crypto News

The Fast and the Curious: The Latency Barrier for Institutional Crypto Traders – Waters Technology (subscription)

Institutional investors want to enter the crypto space but the lack of infrastructure around guaranteed latency and access to real-time market data is hindering a wider entry into the field.

UK’s Oldest Bitcoin Exchange Slashes Jobs – Financial News (subscription)

Coinfloor is in the process of slashing most of its approximately 40 employees in a surprise setback for the City’s fintech industry.

Simulation Could Help Tame Crypto Wild-West Says Expert – Global Investor (subscription)

Regulators could gain a better view of how new coins would perform using a simulation tool, an expert said.

Caspian Partners with B2C2 for Crypto Liquidity – Profit & Loss

Crypto trading and risk management platform provider Caspian has partnered with B2C2, a cryptocurrency market maker and liquidity provider, in a move that the firms claim, “makes life much easier for larger investors wanting to increase their exposure to cryptocurrency markets”.

SmartTrade Chosen By Seba Crypto – Profit & Loss

SmartTrade has been chosen by Seba Crypto to deliver its crypto and traditional assets trading platform. 

BitGo Building Out Crypto Trust Company – Global Investor (subscription)  

BitGo is building out its trust company’s capabilities ahead of expected regulatory approvals.

The Tinder for Markets Is Run on Crypto – Bloomberg

Richard Craib built his quant-driven hedge fund Numerai on the idea that if one data scientist is good, 40,000 are better. Now he’s inviting competing funds to draw from the same pool of brains for hire. 

Company News 

Virtu-ITG Tie-Up Could Bring in Coveted Real Money Sector – Profit & Loss

Virtu, like some of its nonbank rivals, has recently focused on building its own client-centred business. Virtu’s acquisition of KCG last year brought with it established direct-to-client market making relationships, and ITG is expected to broaden the client type.  

Lovell Named TP-Icap AP Head – Profit & Loss

Tom Lovell has been named head of global broking for Asia Pacific at TP-Icap. He will report to Barry Dennahy, CEO, TP-Icap for Asia Pacific. 

Barclays Overhauls Compliance Team Following High-Profile Exits – Financial News (subscription)

Barclays is overhauling the department tasked with policing the behaviour of its investment bankers following a wave of high-profile exits from the financial giant’s compliance team. 

Newly Branded Jump Liquidity Hires Three – Profit & Loss

Jump Liquidity, the new direct trading focused brand of Jump Trading launched at Profit & Loss Forex Network Chicago last week, has announced three hires for its sales team.

Campbell Leaves Hunter Burton, Establishes Own Fund – Profit & Loss

David Campbell has left Sydney-based hedge fund Hunter Burton Capital to set up his own currency-focused fund.  

Market Savvy 

Sterling Drops as Dollar Gains, Caution Sets in after Brexit Deal Optimism – Reuters

The British pound fell on Monday as the dollar rallied and traders re-assessed the chances of a breakthrough in Brexit negotiations after the encouraging headlines seen in recent days.

Dollar Extends Two-Week Run of Gains, Data Eyed – Reuters

The dollar climbed on Monday, building on last week’s gains as weakness in global markets, led by Chinese equities, and recent strong US data boosted demand for the greenback.

Indonesian Rupiah Touches Fresh Two-Decade Low – Financial Times (subscription)

The Indonesian rupiah touched its weakest level against the dollar in more than two decades on Monday, reportedly prompting the country’s central bank to step in to defend the currency as it pushed further toward a nadir not seen since the Asian financial crisis.

Renminbi Weakens 0.5% on Return from Long Holiday – Financial Times (subscription)

China’s currency weakened half a per cent on Monday upon return from a week-long holiday and after the People’s Bank of China moved over the weekend to free up $109bn in capital at the country’s banks.

IMF: The Fight to Woo a Sceptical US over Funding – Financial Times (subscription)

Populism, a trade war and a cynical White House are making life hard for the fund as it seeks new capital.