Top Headlines

Fotheringhame Wins Unfair Dismissal Case Against Barclays – Profit & Loss

Profit & Loss understands that David Fotheringhame, former head of automated flow trading at Barclays, has won his claim for unfair dismissal against the bank.

US Presses for Tougher Sentence for Mark Johnson – FX Week (subscription)

US prosecutors in the frontrunning case against former HSBC currency executive Mark Johnson have opposed a $3.1 million loss amount calculated in a pre-sentencing investigation report, claiming it fails to capture the total profit gained by the bank through the fraudulent scheme.

Dollar Extends Four-Week Rising Streak But Risks Lurk – Reuters

The dollar edged higher against a basket of rivals after posting four consecutive weeks of gains as financial markets braced for the first rate hike of the year from the US Federal Reserve.

BlackRock Is Ready for Big Pound Move. Direction Not Applicable – Bloomberg

The world’s largest money manager is convinced sterling’s next big move is just around the corner as Brexit negotiations come to a head, but which way it will swing hinges entirely on the end result.

Hedge Funds Go Long on Yen as Team Abe’s Troubles Deepen – Bloomberg

Recent data on leveraged currency bets – a key hedge fund strategy – show net wagers are in favor of yen strength for the first time since last spring.

Bank of England Warns of Threats to Post-Brexit Financial Stability – Financial Times (subscription)

The Bank of England has warned that regulators and politicians in the UK and EU are not doing enough to prevent “material risks” hanging over the £26tn derivatives market after Brexit, even if a transition deal is agreed.

Growth of Crypto-Assets May Threaten Financial System, FSB Says – Bloomberg

The rapid evolution of crypto-assets such as Bitcoin may one day make them a threat to the financial system, Mark Carney, chairman of the Financial Stability Board, said in a letter to Group of 20 finance leaders.

Libor Concerns Prompt Switch to Sonia Swaps – Risk (subscription)

Certain liability-driven investment funds are avoiding entering into interest rate swaps linked to sterling Libor and are instead adopting the new risk-free rate in the UK, the sterling overnight index average (Sonia), according to bankers and asset managers.

Size Means Power – Profit & Loss (subscription)

A combined CME (or ICE) and NEX would also have some serious financial clout and an excellent footprint across the globe, which could be interesting for those rival groups that have already done their deals.

How High-Frequency Trading Has Changed the Forex Market – Tabb Forum

High-frequency trading has created a foreign exchange market in which the banks and institutional traders are now no longer the primary providers of liquidity.

Regulatory News 

US, European Regulators Clash Over CCPs Rules – Profit & Loss

The Commodity Futures Trading Commission (CFTC) has accused the European Commission (EC) of attempting to renege on a previously agreed framework for cross-border CCP recognition, with the EC refuting this characterisation. 

China Forms New Economic Team as President Xi Kicks Off Second Term – Reuters

China elevated a key confidante of President Xi Jinping to one of the top positions in government as Beijing cracks down on riskier financing and a debt build-up that may pose systemic risks to the world’s second-largest economy.

Federal Reserve Meeting to Set Tone for Markets and Investors – Financial Times (subscription)

Jay Powell will hold his first press conference as chair of the US central bank.

Under Scrutiny, New York Fed Sets Short List for Dudley Successor – Reuters

The Federal Reserve Bank of New York is considering a “handful” of candidates for what is seen as the second most influential job at the US central bank, its directors said, as political pressure mounts to choose someone who breaks with past precedent. 

CFTC Set to Partner with SEC on CDS Supervision – Risk (subscription)

CFTC chairman Christopher Giancarlo discussed the agreement in a behind-closed-doors meeting with industry participants on March 13. 

Bill to Rewrite Dodd-Frank Post-Crisis Banking Rules Is ‘Mostly’ Reasonable: Barney Frank – CNBC

Barney Frank, former congressman from Massachusetts, says the bill to rewrite the Dodd-Frank post-crisis banking regulations is not a rollback.

Company News

NEX Veteran to Leave – Profit & Loss

Profit & Loss understands that Darryl Hooker, global head of metals and spot and head of FX EMEA at NEX Markets is leaving the firm.

EBS Claims Traction Amongst Asset Managers – Profit & Loss

Two and a half years on from acquiring Molten Markets, EBS is beginning to claim some tangible traction amongst the asset management community.

Bee Joins Crown Agents Bank – Profit & Loss

Crown Agents Bank has appointed David Bee in the newly created role as head of global markets. He will also join the bank’s executive committee.

CME Group Delivers Compression Tool for OTC FX Non-Deliverable Forwards – Finance Magnates

The tool has many benefits for traders and users of CME Group.

Ripple Loses Bid to Keep Its Cryptocurrency Fight in California – Bloomberg

Blockchain developer Ripple Labs lost its shot at a home-court advantage in a dispute with rival R3 Holdco over ownership of cryptocurrency XRP that was once worth more than $16 billion.

Market Savvy

South Korea Considers Disclosing FX Smoothing Operation Details – Reuters

South Korea may disclose details of actions taken by currency authorities to smooth foreign exchange market volatilities, two government officials told Reuters.

Investors Eye Currencies for Those Most at Risk in a Trade War – Reuters

Foreign exchange markets appear convinced that a global trade war is unlikely to break out anytime soon, although with long bets on some currencies at record highs, investors fear complacency may be setting in.

Russia Is This Week’s Emerging-Market Focus as the G-20 Meets on Trade – Bloomberg

The ruble was the worst emerging-market currency last week after the Turkish lira.