Top Headlines

Johnson Appeal Highlights “Ever-Shifting, Imprecise and Contradictory” Government Argument – Profit & Loss

The defence team conducting former HSBC FX trading head Mark Johnson’s appeal against his conviction in late 2017 have filed their appeal brief to the US Court of Appeal, in which they argue that the US Government’s brief offers, “…the latest flavour of the prosecution’s many ever-shifting, imprecise, and contradictory attempts to explain just what, exactly, the crime here was, and it exposes why there was none.”

FX Credit Management: Keeping Up With the Bots – Euromoney

The operators of FX platforms deny that credit management has failed to keep pace with the development of automated trading – but they do acknowledge that the process could be more efficient.

FX Traders ‘Flying Blind’ After a Month Without Positioning Data – Bloomberg

As the partial US government shutdown drags into its 33rd day, analysts are getting creative when it comes to gauging which way certain financial markets are leaning.

Brexit Unlikely to Affect Sterling’s Reserve Currency Status – Central Banking (subscription)

The economic instability created by the UK’s departure from the European Union is unlikely to affect sterling’s popularity as a reserve currency, analysts say.

Banks Need to Challenge Fintechs By Playing the Same Game – Euromoney

Greenfield start-ups embedded within the core business might be the best way for banks to address their legacy infrastructure problem.

Regulatory News

Australian Regulators Under Scrutiny for Accepting Industry Gifts – Regulation Asia

The Australian Securities and Investment Commission (ASIC) was reportedly found to have accepted expensive gifts and hospitality from financial firms including Macquarie Bank even as it was under multiple investigations by the corporate regulator.

Five US Market Regulation Forecasts for 2019 – Financial Times

Davis Polk lawyers expect changes to Volcker rule and guidance on cryptocurrencies.

Money Is Flooding Out of London While the UK Bickers Over Brexit – Bloomberg

The UK parliament can’t agree on how to leave the European Union, but many finance firms have already decided how much money to move out of the City of London – a shift that’s seen by some as irreversible.

Pessimism Looms Over Prospect of a Sweeping China Trade Deal – The New York Times

As a critical round of talks with China kicks off next week, the Trump administration is increasingly pessimistic that Beijing will make the kind of deep structural changes to its economy that the United States wants as part of a comprehensive trade agreement, according to officials involved with the talks.

Keeping Score of Trade Compliance: A Regulator’s Perspective from Tom Sexton, NFA CEO – Trading Technologies

interview with NFA President and CEO Tom Sexton about how his organization deals with regulation, outsourced regulatory services, education and rulemaking.

Crypto News

UK Watchdog Flags Possible Ban on Some Crypto-Related Trading – Reuters

Britain’s markets watchdog said on Wednesday it would consult later in the year on a proposed ban on selling derivatives linked to certain types of crypto assets to retail customers.

Bitcoin’s Proof-of-Work Algorithm Needs Replacing, Argues BIS Study – CoinDesk

The proof-of-work algorithm used by bitcoin and some other cryptocurrencies is not viable in the long-term and needs to be replaced, argues a new study from the Bank of International Settlements (BIS).

Bitcoin Bottom Signal Reemerges as Price Approaches Oversold – Bloomberg

Bitcoin’s price appears to be stabilizing, and the digital currency may even be gearing up for a short-term rally, technical indicators show.

Coinbase Makes Push in Asia With Crypto Institutional Services – Bloomberg

Coinbase is turning to Asia a little more than six months after making a big push to become the go-to trading platform for Wall Street when it comes to all things related to digital currencies.

Company News

Duffy Reigns as CME Rises – Crain’s Chicago Business

CME Group Chairman and CEO Terry Duffy has what traders call a “hot hand” as he approaches his next high-stakes challenge: integrating the company’s biggest acquisition in more than a decade. CME closed the $5.5 billion purchase of London-based NEX in November, capping a strong year for the world’s biggest operator of futures exchanges. 

No Idea Is Off Limits for IMF’s First Woman Chief Economist – Bloomberg

Gita Gopinath has a knack for asking the kind of questions that, not so long ago, might have raised eyebrows inside the International Monetary Fund, where she just took over as chief economist. An expert on FX regimes, Gopinath takes over at a turbulent time.

7Orca Live with ThinkFolio – Profit & Loss

German asset manager 7orca Asset Management AG has expanded its use of HIS Markit’s ThinkFolio solution to include its order management and portfolio modeling solution. 

Market Savvy

Sterling Rises Above $1.3 on Bets No-Deal Brexit Can Be Averted – Reuters

Sterling rose above $1.3 on Wednesday on signs that British lawmakers will move to prevent a disorderly no-deal exit from the European Union.

Dollar Near Three-Week High as Central Banks Eyed – Reuters

The dollar held near a three-week high on Wednesday after the Bank of Japan left monetary policy unchanged, boosting risk appetite and sending the yen lower.

Top Emerging Asia Currency Forecaster Warns of Too Much Optimism – Bloomberg

Currencies in emerging Asian markets are rallying, and the most accurate forecaster is warning there’s too much optimism. Investors are “too dovish” on the Federal Reserve’s rate path, which helped drive a measure of the region’s currencies to a six-month high even as exports are struggling.

Renminbi Rebound Set to Snap Four-Day Losing Streak – Financial Times

China’s renminbi mounted a rebound against the dollar on Wednesday, with the strongest rise in a week putting it on track to end a four-day run of losses.