Top Headlines

FSB Sees Derivatives Reform Progress: But More Needed – Profit & Loss

The Financial Stability Board (FSB) has published three reports looking at the ongoing derivatives markets reform process and while the news is broadly positive the FSB says there is still more progress needed on trade repositories (TRs).

Brightening Economy Sets Euro Up for Strongest Quarter Since Debt Crisis – Reuters

The euro came off yearly highs but was still set for its strongest quarter in six years as investors pile into the currency on a brightening euro zone economy and its implications for monetary policy in the bloc.

Pound on Seven-Day Hot Streak as BOE Stiffens Hiking Rhetoric – Bloomberg

The pound rose for a seventh day versus the dollar, set for its longest winning streak since April 2015, after Bank of England Governor Mark Carney said that the Monetary Policy Committee may need to raise interest rates despite a weakening economy.

Dollar Falls to Lowest Level Since October – Wall Street Journal (subscription)

The dollar fell to its lowest level since October, as expectations that several major central banks around the world are getting set to tighten monetary policy lifted other currencies.

Dollar Should Rally if Risk Aversion Rises – Financial Times (subscription)

Monetary policy dynamics may continue to weigh versus the yen and euro.

BoE Warns of Potential Disruption to Clearing Business for EU firms – Risk (subscription)

Fragmentation of market-based finance could raise costs and risk for EU and UK companies.

Convicted Barclays Traders Target SFO Expert in Libor Appeal – Bloomberg

Former Barclays traders convicted of rigging Libor are attacking the credibility of an expert witness for the prosecution who texted friends during breaks in his testimony for help to describe banking terms.

Regulatory News

Giancarlo Nomination Proceeds to the Senate – Profit & Loss

The US Senate Committee on Agriculture, Nutrition, and Forestry has voted to confirm the nomination of Christopher Giancarlo as chairman for the US Commodity Futures Trading Commission (CFTC).

CFTC in First Non-Prosecution Agreements with Former Citi Traders – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has for the first time entered into non-prosecution agreements with subjects of an official investigation.

Fed Weighing VM Capital Cut for Cleared Swaps – Risk (subscription)

Powell implies support for practice that saved UBS $300m in capital.

New Study Highlights Buy Side Mifid II Concerns – Profit & Loss

A new study by consultancy firm JWG shows that 90% of buy side firms believe they are at either high or medium risk of not being compliant with the Mifid II rules when they come into effect in January 2018.

FCA Holds Off Retail Rule Change as ESMA Considers Stronger Intervention – Profit & Loss

The UK’s Financial Conduct Authority (FCA) says it will delay its own rules on the products.

Company News

New Paper Challenges the Perception of Bank Liquidity in FX – Profit & Loss

A new research note from Pragma Securities is seeking to challenge the perception that banks are increasingly stepping back from providing liquidity to FX markets.

Barclays Names Zorzoli as Macro Distribution Head – Profit & Loss

Barclays has appointed Filippo Zorzoli as head of macro distribution for EMEA and Asia Pacific.

Former Deutsche Director Joins Wells Fargo – Profit & Loss

Sandra Francisco has joined Wells Fargo as a director, according to market sources.

Baffled by Brexit: With So Much Unknown, London Bankers Struggle to Plan – Wall Street Journal (subscription)

The City of London is back in the dark over Brexit after this month’s UK general election muddied the outlook for the UK’s departure from the European Union.

Market Savvy

Australia’s Week in Charts: Good Riddance to a Miserable Quarter – Bloomberg

Aussie is second-worst G-10 currency over the three months.

Thailand’s ‘Super-Baht’ May Be Too Strong for Its Own Good – Bloomberg

The baht is again posing challenges for Thailand – but this time because it may be too strong.

C$ Posts Nears Five-Month High as Yield Jump Pressures Short-Sellers – Reuters

The Canadian dollar strengthened to a nearly five-month high against its US counterpart, as higher domestic yields pressured investors that had bet against the currency and oil prices rose.