Top Headlines

FXPA Appoints John Shay as President – FXPA

The Foreign Exchange Professionals Association (FXPA) is pleased to announce the hire of John Shay as President of the organisation, a newly created role. Additionally, FXPA has hired Mercury Strategies, represented by Justin Slaughter, as its new legal counsel.

Dollar Wallows Near Three-Year Lows on US Government Shutdown – Reuters

The dollar was pinned near a three-year low as a US government shutdown encouraged investors to add to bearish bets against the greenback while the euro consolidated recent gains.

Sliding US Dollar Creates a Trap for Investors – Financial Times (subscription)

A rebound would send sure bets into reverse and spark turbulence across markets.

Investors, Policy Makers Will Lack Key Government Data During Shutdown – Wall Street Journal (subscription)

Market-moving data that influences trillions of dollars of daily trading flows in stock, bond, currency, commodities and derivatives markets may not be published while the government remains closed.

Sterling Steadies Around $1.39 After Best Run Since 2014 – Reuters

Sterling steadied around $1.39, with traders cautious about pushing the pound higher after five consecutive weeks of gains against the dollar – the currency’s longest winning streak since 2014.

FX Traders Do $100 Million Deals on Mobile Phones – Bloomberg

In a JPMorgan survey of more than 400 institutional FX, rates and commodities traders, 61 percent said they’re “extremely” or “somewhat” likely to use a mobile trading app this year, up from 31 percent in 2017.

US CFTC Sues Three Virtual Currency Operators for Fraud – Reuters

The US derivatives watchdog said that it has filed charges against three separate virtual currency operators alleging the defendants had defrauded customers and broken other commodity trading rules, in a further sign regulators globally are cracking down on the emerging asset class.

Deutsche Bank: Correlation Between Bitcoin and Wall Street’s ‘Fear Index’ Is Increasing ‘Dramatically’ – Business Insider

There’s a growing relationship between the price of bitcoin and the VIX, the volatility index colloquially known as Wall Street’s “Fear Index,” according to analysts at Deutsche Bank.

Euro, Yen Tell Two Different Tales of Negative Rates – Wall Street Journal (subscription)

Japan and the eurozone share negative interest rates and stronger economic growth, but their currencies are heading in different directions.

Trump-China Trade Clash Fears Flare Anew One Year Later – Bloomberg

The next month will be crucial in signaling whether US President Donald Trump’s threats to get tough on China over trade turn from rhetoric into reality.

No-Deal Brexit Could Cause Finance Chaos, Industry Group Warns – Bloomberg

There are at least five key areas where financial firms need clarity from UK and EU policymakers to avoid instability, the Association for Financial Markets in Europe said in a report.

Regulatory News

Bitcoin Futures Cop Says It Will Remain on Beat During Shutdown – Bloomberg

The US Commodity Futures Trading Commission said it would keep tabs on Bitcoin futures trading and other markets during a government shutdown, even though it would be forced to halt many other normal activities.

Federal Reserve’s Quarles Calls for Tailored Approach to Supervision – Wall Street Journal (subscription)

The Federal Reserve’s supervision chief detailed a deregulatory agenda that would adjust thresholds determining capital and liquidity levels at banks, as well as other types of oversight.

Industry Expects Fresh Guidance on Mifid Swaps Transparency – Risk (subscription)

Market participants expect the European Securities and Markets Authority to publish further guidance on the scope of over-the-counter derivatives subject to post-trade reporting requirements under new market rules in the European Union.

ECB Board Shake-Up Kicks Off with Vice-President’s Job – Financial Times (subscription)

Euro area governments will kick off the process of finding a successor to Vítor Constâncio as vice-president of the European Central Bank with Spain well placed to secure the role for its economy minister Luis de Guindos.

Six US Market Regulation Predictions for 2018 – Financial Times (subscription)

Now that most of the Trump-era US financial regulatory principals are in place, we predict this year will bring the beginnings of concrete changes to US trading and markets regulation.

Company News

CLS Volumes Show Year-End Dip Despite YoY Improvement – Profit & Loss

The average daily volume (ADV) submitted to CLS in December was $1.56 trillion, down 6.9% from $1.67 trillion in November 2017, but up 13% from the $1.38 trillion of ADV submitted in December 2016.

FCA Approves New Change FX for Benchmarks – FX Week (subscription)

Independent data provider New Change FX (NCFX) has been approved by the Financial Conduct Authority as the first benchmark administrator for live FX spot markets under EU benchmark regulations.

Natwest Markets Hires de Sibert – Profit & Loss

Chris de Sibert has been appointed as a director at NatWest Markets in London.

The CEO of the Oldest Bitcoin Exchange Says All Platforms Are Struggling with ‘The Massive, Massive Amount of New Users’ – Business Insider

New customer sign-ups on the cryptocurrency exchange Bitstamp rose from 10,000 a day at the start of 2017 to over 100,000 by the end of the year.

Market Savvy

Dollar Falls Below Rmb6.40 for First Time Since 2015 – Financial Times (subscription)

The greenback declined against the yuan, reaching its weakest point in more than two years against China’s currency amid a broad fall for the buck.

These Are 2018’s Most (And Least) Attractive Emerging Markets – Bloomberg

By some measures, Mexico and Turkey come out as the most attractive emerging markets for 2018.