Top Headlines
Former Trader Convicted in Euribor Rigging Trial – Financial Times (subscription)
A former star trader at Barclays has been found guilty of conspiracy to defraud in relation to the Euribor lending rate, while one other defendant was acquitted and the jury failed to reach verdicts for three others.
Dollar Gains Sustained by Trade War Risk, Rising Inflation – Reuters
The US dollar held steady at a six-month high against the Japanese yen and a two-month high against the Swiss franc, bolstered by solid inflation data and investor sentiment that the greenback stands to benefit from a trade war.
Sterling Skids as Trump Says Trade Deal Hopes Are Probably Dead – Reuters
Sterling fell half a percent to a 1½ week low as a resurgent dollar and comments by President Donald Trump that a possible US-British trade deal was probably dead sapped demand for the pound.
Euro Falls as Rate Expectations, Trade Tensions Boost Dollar – Reuters
The euro fell to an eight-day low as US inflation numbers boosted interest rate expectations and an easing in trade tensions between the United States and China supported the dollar.
Is Japan’s Yen Unravelling as a Safe-Haven Trade? – Financial Times (subscription)
The fact that the yen has not been strengthening steadily into the past few weeks of escalating trade war rhetoric and other unsettling newsflow is now routinely described as remarkable.
Emerging Market Sell-Off Is Only Going to Get Worse, Survey Says – Bloomberg
With the Federal Reserve still boosting interest rates and President Donald Trump still raising tariff threats, the bottom for emerging markets remains some way away, market players say.
Brexit White Paper: City Reacts to Financial Services Proposals – Financial News (subscription)
The UK government has published its bid for a post-Brexit “association agreement” with the EU today, including proposals for a new deal on financial services – which will offer less access for UK-based firms than the existing passporting regime.
- A New Approach for UK Financial Services After Brexit – Financial Times (subscription)
- Top EU Finance Watchdog Warns Firms Unprepared for Hard Brexit – Financial Times (subscription)
US Banks Could Lose Out Under UK’s Brexit Plan – Wall Street Journal (subscription)
The UK set out its negotiating position on Brexit – and the news isn’t great for US banks with big offices in London.
Regulatory News
ISDA Launches Global Consultation on Benchmark Fallbacks – Profit & Loss
The International Swaps and Derivatives Association (ISDA) has launched a market-wide consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (Ibors).
ESMA Delays Systematic Internaliser Regime for Derivatives – The Trade
The EU markets watchdog has decided to delay the implementation of the systematic internaliser (SI) regime for derivatives to 2019.
Top Republican Says GOP Must Move on From Dismantling Dodd-Frank – Bloomberg
Such policies might draw bipartisan support, unlike efforts to gut Obama-era financial regulations.
Crypto News
Crypto Trading Will Top $1 Trillion in 2018, Forecasts Aite Group – The Trade
Advisory and research firm Aite Group has forecast that the total trading value of cryptocurrencies will top $1 trillion in 2018.
Cryptos Poised to Go Mainstream – Profit & Loss (subscription)
Traditional financial services firms, such as banks, are clearly poised to enter the crypto space, explained speakers at the Profit & Loss Forex Network New York conference.
First Crypto Fund-Only Administrator Launches in the US – The Trade
Quantreq Capital Markets has launched the first crypto fund-only administrator with $700 million in cryptocurrency assets under administration from around the world.
- Billionaire Steven Cohen Invests in Crypto Hedge Fund – Bloomberg
- Crypto Investors Try Forming First Regulated Bank, in Malta – Bloomberg
- Robinhood Is Adding Two New Cryptos as It Attempts to Take Down Coinbase – Business Insider
Ex-CFPB Deputy to Guide Crypto Firms Through Regulatory Thicket – Bloomberg
A former Consumer Financial Protection Bureau deputy director turned venture capitalist is opening a consulting shop to help cryptocurrency and digital banking companies navigate Washington.
Company News
SGX: Doing Things Differently – Profit & Loss (subscription)
“It’s not rocket science, but it is a different approach compared to other exchanges,” says KC Lam, head of FX and rates at SGX, when discussing the exchange’s new FlexC FX futures, which aim to “futurise” certain OTC FX product offerings.
CCPs Build Their Liquidity Buffers – Risk (subscription)
Ten of the largest central counterparties strengthened their liquidity by $43.7 billion, a rise of 10%, in the first quarter over the last period of 2017.
A New Golden Age for Banking? – Euromoney
Good, sustainable returns for shareholders are finally in sight, 10 years after the global financial crisis.
Market Savvy
Mexican Peso Resumes Rally to Hit 10-Week High – Financial Times (subscription)
The Mexican peso resumed its upward march, a day after trade jitters knocked its nascent rally off course.
Bearish Bets on Asian Currencies Recede Slightly, But Caution Prevails – Reuters
Investors trimmed their bearish positions on emerging Asian currencies over the past two weeks, a Reuters poll showed, although escalating Sino-US tensions worsened the mid-term outlook for regional units.
Bulgaria Agrees to Conditions for Joining Euro – Financial Times (subscription)
Eurozone governments and Bulgaria have agreed on the conditions that Sofia must meet to put itself on the path to joining the single currency, in a sign that governments are determined to apply a broader set of requirements for accession in the wake of the financial crisis.