Top Headlines

HSBC Cuts Dozens of Investment Banking Jobs: Source – Reuters

HSBC is preparing to lay off dozens of staff in its global banking and markets business. Those affected will be informed this week.

Britain’s Financial Heartland Unbowed as Brexit Risks Deepen – Reuters

Britain’s financial services industry has emerged largely unscathed so far from the build-up to Brexit, with about 2,000 roles expected to have moved or been created overseas even as the risk of a disorderly exit grows, a new Reuters survey showed.

Barclays Traders Shouted Rigging Requests for All to Hear – Bloomberg

There was nothing secret or subtle about how traders at Barclays tried to move the bank’s submission to an important benchmark interest rate in a way that helped their own positions, a former trader told a court.

Greed Is Back as Debt Markets Face an $8.6 Trillion Hangover – Bloomberg

Prayers for a sudden return to dovish monetary policies have been answered, and now investors are living with the aftermath: a world awash with $8.6 trillion in negative-yielding debt. That’s one reason money managers are wading once more into the fringes of fixed income markets across the globe.

Regulatory News

ESMA to Suspend Publication of Vital Mifid II Calculations in Case of ‘No-Deal’ Brexit – The Trade

ESMA prepares for ‘no-deal’ Brexit with plans to temporarily suspend calculations for vital Mifid II rules including the SI regime, DVCs and bond liquidity.

UBS Clear to Move $36.5 Billion of Assets to Germany Over Brexit – Bloomberg

The impact of Brexit on London’s financial sector came into stark relief as a judge approved plans by a UBS Group unit to shift some of its UK business – involving assets valued at more than 32 billion euros – to Germany.

Watchdog Urges Funds to Cut Jargon – Financial Times

Funds must slash the jargon they use and be more transparent about their objectives and performance, according to new rules handed down this week by the Financial Conduct Authority.

China’s PBOC Sets Up Bureau to Improve Financial Oversight – Bloomberg

The People’s Bank of China has set up a department to oversee and eliminate financial risks, as part of its restructuring of departments and personnel.

Crypto News

Institutional Investors and Crypto Trading: Will They or Won’t They? – Investment Europe

Will the 2018 downturn in value of cryptocurrencies have a decisively negative impact on large institutional players joining in? Or does the prospect of institutional investors mean a maturing of the markets and fresh influx of capital?

Crypto Exchange Founder Filed Will 12 Days Before He Died – Bloomberg

Quadriga CX founder Gerald Cotten, whose sudden death left C$190 million in Bitcoin and other digital assets protected by his passwords unretrievable, signed his last will and testament on Nov. 27, 2018.

Lack of Tools to Hamper Digital Asset Regulation – Markets Media

If the US Securities and Exchange Commission did not find it difficult enough to regulate digital assets, it is about to find it will need to do so with one hand tied behind its back.

Winklevoss Exchange Gemini Shuts Down Accounts Over Stablecoin Redemptions – CoinDesk

Two over-the-counter trading desks say their accounts at Gemini, the crypto exchange founded by US investors Cameron and Tyler Winklevoss, were abruptly closed without explanation over attempts to redeem GUSD, the company’s stablecoin first introduced in September.

Most Cryptocurrencies Will Die a Painful Death – Bloomberg

The survivors, though, might make interesting investments.

Company News

Bridgewater Fired Forex Research Chief Over Office Romance – Bloomberg

Bridgewater Associates, the $160 billion investment firm, fired its head of foreign exchange research over how an office romance was handled.

The Big Interview: Chris Childs, CEO of DTCC Deriv/SERV – The Trade

DTCC Deriv/SERV chief executive, Chris Childs, talks about the role DTCC’s TIW played at the time of the financial crisis, and the progress made so far in establishing a global reporting framework for OTC derivatives.

BNP Paribas Cuts Targets for 2020 after Global Markets Revenue Plunges 40% – City A.M.

BNP Paribas has cut its targets for 2020 after revenue in its global markets arm plunged 40 per cent amid volatility at the end of last year.

Elixium Sees First US Trades – Global Investor (subscription)

All-to-all electronic repo platform launched its US offering in January.

Market-Maker Flow Traders Names Head of Fixed Income – Financial News (subscription)

Flow Traders, the European electronic market-making firm, has appointed a former JP Morgan and Nomura executive as its head of fixed income trading.

Market Savvy

Sterling Stuck Near Two-Week Low after Possible Brexit Delay Report – Reuters

Sterling steadied on Wednesday but held near a two-week low as investors mulled a report that UK cabinet ministers are discussing plans to delay Brexit by eight weeks.

Australian Dollar Sinks after RBA Introduces Chance of Rate Cut – Financial Times

The Australian dollar retreated by the most in a year on Wednesday after Reserve Bank of Australia governor Philip Lowe said in a speech “there are scenarios where the next move in the cash rate is up and other scenarios where it is down”. 

The Euro in 2019: Stable But Very Hard to Love – Financial Times

The euro and the dollar are stuck in a tug of war and, against the odds perhaps, the euro is winning.