Top Headlines

Has FX Turned a Corner? – Profit & Loss

Now that MiFID II is in force and the industry has had time to digest the Global Code of Conduct, platform providers will face fewer distractions in 2019.

UK Financial Watchdog Warns Market at Risk from No-Deal Brexit – Financial Times (subscription)

Speaking to a House of Lords select committee on Wednesday, Andrew Bailey, the chief executive of the Financial Conduct Authority, warned that the “patchwork” of action across EU member states to mitigate the legal risk posed by vast amounts of uncleared derivatives may not be enough to stem market disruption in the event of a hard Brexit.

Bank by Bank, This is What’s Coming Next in 2019 – eFinancialCareers

Deutsche Bank: Hiring in fixed income, targeting revenues in FX, cutting costs in the back office, quietly adding in equities.

CFTC Seeks Trading Venue Equivalence in Asia – (subscription)

Having taken steps to ensure trading venue equivalence with the UK as it hurtles toward Brexit, the United States has been trying to do the same, quietly, in Asia.

Regulatory News

Why the Death of Libor is a ‘Defcon 1 Litigation Event’ – Financial Times

One sure-fire winner will emerge from the mess that is financial benchmark reform: lawyers. It is hard to imagine an overhaul of market infrastructure more suited to their needs as this process lumbers towards an inevitable flurry of disputes.

DE Shaw Rebukes Giancarlo’s Big Idea on SEFs – (subscription)

The multi-billion dollar investment firm DE Shaw gave a thumping endorsement of the electronic trading mandated by current rules on swaps trading in the US, adding that the Commodity Futures Trading Commission’s new proposals for swap execution facilities (SEFs) would be a step backward.

CFTC Will Not Appeal Judge’s Ruling in DRW Manipulation Case – Financial Times

A US financial regulator has formally abandoned its losing legal battle against proprietary trader DRW and its leader, Don Wilson, after suffering a humbling setback in court late last year.

Initial Margin Regulation Faces ‘Big Bang’ – Markets Media

The requirement to exchange initial margin on uncleared derivatives will affect ten times as many market participants in 2020.

Crypto News

ESMA Chair Wants Objectivity, Open Minds for Crypto-Asset Regulation – The Trade Crypto

The chair of the European Securities and Markets Authority has called for objectivity and open mindedness from regulators in developing regulatory frameworks for crypto-assets and distributed ledger technology, while highlighting industry calls for the technology to deliver on its early promise.

Blockchain’s `Irrelevant’ in Plan to Automate Investment Banking – Bloomberg

The London fintech firm behind the first regulated cryptocurrency bond is attracting investors to help it automate capital markets without using the blockchain – for now.

What Crypto Bear Market? Investment Funds Have Poured $1.6 billion into the Industry Since 2018 – MarketWatch

The incessant crypto bear market that has wiped more than half a billion dollars off the total value of all digital currencies may have dented retail punters pockets, but for large-scale investment firms, the numbers tell a different story.

Company News

Integral: Adopting the Netflix Model for Technology – Profit & Loss

On the technology side, Integral upgraded all aspects of the technology stack for its OCX platform last year, from the networking infrastructure to the software and hardware. It also changed the pricing structures for both its ECN and technology services. 

FXSpotStream: A Model That Works – Profit & Loss

A broader shift in the market towards disclosed trading is contributing to FXSpotStream’s volume growth as is the firm’s fee structure, which sees liquidity provider banks pay a flat monthly fee to trade on the service while liquidity takers are not charged at all.

Six Things You Need to Know from JP Morgan’s Investor Day – eFinancialCareers

There’s been some crazy growth in FX algorithmic trading and electronic trading in euro swaps.

Goldman Sachs is Announcing Layoffs Starting Today – eFinancialCareers

Goldman Sachs will announce a wave of redundancies starting Thursday. Insiders at the firm say the bank will begin announcing redundancies across its divisions, beginning Thursday morning. 

State Street Puts Maiuri in Charge of Global Technology – Finextra

State Street has promoted thirty-year industry veteran Lou Maiuri as chief operating officer with overarching responsibility for technology, operations, product and innovation across the group.

Market Savvy

Sterling Eases as Investors Book Profits from this Week’s Surge – Reuters

The British pound pulled back from recent highs on Thursday as investors booked profits and assessed the continued uncertainty about when the United Kingdom will leave the European Union and on what terms.

Swiss Franc Leads Gains on Weak China Data, Trade Talk Fears – Reuters

The Swiss franc rallied by half a percent against the dollar on Thursday as weak Chinese factory data and lack of progress at US-China trade talks encouraged traders to take profits.

Goldman Strategist Sees Yen Hitting 60 to Dollar Next Crisis – Bloomberg

With global stocks rallying since the start of the year and recession fears easing in at least some quarters, preparing for the next crisis isn’t top-of-mind for many market players just now. That hasn’t stopped one Goldman strategist from game-planning.