Top Headlines

Icap Dismissed from Euribor Class Action – Profit & Loss

Nex Group says that the United States District Court in the Southern District of New York has dismissed two entities which formed part of the Icap Group (Icap plc and Icap Europe Limited) from a class action case brought by various investors who alleged manipulation of the Euro Interbank Offered Rate, Euribor.

HSBC Gags Some Analysts on Politics as Banks Clam Up – Reuters

Major banks are clamping down on market analysts talking publicly about politics for fear of appearing to take sides, with HSBC taking its main global currencies commentator off air in an intensification of the crackdown.

Dollar Drifts, Awaits Trump’s Stimulus Plans – Reuters

The dollar drifted with its earlier advance halted by investors taking a wait-and-see approach ahead of US President Donald Trump’s closely-watched Congressional address later in the day.

Yen Inches Higher Ahead of Trump Speech – Reuters

Japan’s yen was the only substantial mover among major developed world currencies, rising a third of a percent against the dollar and euro as investors sought safe havens for their money before a speech to Congress by President Donald Trump.

Pound Pressured By Worries Over Brexit “Tail Risks” – Reuters

Sterling traded close to a two-week low against the dollar as investors awaited a speech by US President Donald Trump, with the pound kept under pressure by worries about the future of Britain as it leaves the European Union.

As Brexit Talks Loom, EU to Dodge Early Clearing Clash – Reuters

The European Union will not pick an immediate fight with the City of London over its right to clear euro-denominated securities, EU officials said, as Britain prepares to trigger the process of quitting the bloc.

The Euro Is Not the Way to Play Eurozone Political Risk – Financial Times (subscription)

Backing haven currencies looks wise with uncertainty on both sides of the Atlantic.

Trump’s ‘Currency Manipulation Criteria’ Claim Over China Dismissed By His Own Treasury – South China Morning Post

Treasury report found ‘no economy satisfied its key three criteria’: a significant bilateral trade surplus with the US, a material current account surplus, and is engaged in persistent one-sided intervention in the foreign exchange market.

Rouble Outperforms EM Currency Peers – Financial Times (subscription)

The move higher in the rouble comes in spite of measures taken by the Russian central bank to try and weaken the currency.

Regulatory News

SEC Advances Regulation Efforts Even as White House Signals Rollback – Wall Street Journal (subscription)

CFOs stuck between complying with rules that could soon change or running afoul or regulators.

Mnuchin Tells Carney to Expect America-First Push on Regulation – Bloomberg

Treasury Secretary Steven Mnuchin told Mark Carney that Donald Trump’s administration will promote US national interests in global talks on financial regulation.

Former Regulators Warn Against Financial Deregulation – Wall Street Journal (subscription)

‘Now is not the moment to relax or to retreat,’ Systemic Risk Council tells G-20 leaders.

China Opens Currency Derivatives to Lure Overseas Bond Investors – Bloomberg

China is giving overseas investors access to its foreign-exchange derivatives market to allow hedging of bond positions, in the latest bid to attract inflows.

FIA Epta Wants Exchanges to Back EBA Capital Talks – FOW (subscription)

The prop trading arm of FIA has called on exchanges to supports its efforts to secure concessions to European capital reforms that could have a major impact on the region’s trading firm.

Fix Trading Community Adapts Protocol to Include European Regulations ­– Pensions & Investments (subscription)

Fix Trading Community introduced extensions to its FIX Protocol, industry-created rules governing the communication of securities trading information, that meet upcoming requirements of European regulations MiFID II and MiFIR.

Company News

Tradition Extends Trade Compression to Uncleared Margin in FX – Profit & Loss

Inter-dealer broker Tradition says it has delivered an initial margin optimisation in FX, after extending its partnership with compression and analytics provider LMRKTS.

CME Introduces “Triangulation” to Boost Options Liquidity – Profit & Loss

CME Group has gone live with the “triangulation” of its volatility quoted FX options (VQO), a new system that links the VQO, premium quoted options (PQO) and futures books in order to boost liquidity.

DTCC Moves Onto Next Stage for DLT Repo Solution – Profit & Loss

The Depository Trust & Clearing Corporation (DTCC) has completed its proof-of-concept for using a distributed ledger based solution to manage the clearing and settlement of US Treasury, Agency, and Agency Mortgage-Backed repurchase agreement (repo) transactions.

Business Giants to Announce Creation of a Computing System Based on Ethereum – The New York Times

Microsoft, JPMorgan Chase and other corporate giants are joining forces to create a new kind of computing system based on the virtual currency network Ethereum.

Market Savvy 

Israeli Shekel Hits Fresh Two-Year High – Financial Times (subscription)

Israel’s currency has hit its strongest level in more than two years after the country’s central bank held interest rates as expected but warned again that the strong shekel was weighing on exports.

Asian Currencies Drift Below Recent Highs, Focus on Trump Speech – Reuters

Asian currencies were little changed against the dollar, holding below recent highs, as investors awaited US President Donald Trump’s speech to Congress for clues on tax reform and infrastructure spending.

LatAm FX Little Changed in Pause Before Trump Speech – Reuters

Latin American currencies were little changed but remained vulnerable to new signs of protectionism by the United States that could hit emerging markets.