Top Headlines

JP Morgan Shuffles Investment Bank Roles, Elevates Troy Rohrbaugh – Bloomberg

JP Morgan is shuffling roles within its corporate and investment bank in a shift that streamlines the company’s trading and treasury operations. In the biggest change, the bank elevated Troy Rohrbaugh to head of global markets, where he’ll oversee all of fixed income and equity trading.

The City of London Is Confused, Dismayed, Relieved (and Hopeful) About Brexit – Bloomberg

Dismay, confusion, relief – and hope. As money managers, traders, bankers, and lawyers girded for the prospect of leaving the bloc on March 29 with no deal, they commiserated with rattled clients and pushed ahead on contingency plans they had hoped would never be needed.

Currencies Offer a Bright Spot for CTAs – Profit & Loss

Currency trading was one of the few bright spots for CTA performance last year, according to new data from BarclayHedge, now a division of Backstop Solutions.

Regulatory News

Mifid II Hysteria Over Analyst Research Appears Misplaced – Financial Times

Bankers like to warn about “unintended consequences” whenever regulators come up with a new rule that could make them poorer. So it was with Mifid II, an EU-wide law that, among other things, made banks charge investors for the research they provide, rather than bundling the cost into commissions for trading.

Investors Bemoan Mifid II Best-Ex Failings – (subscription)

Financial market rules forcing trade venues to publish data are failing to improve best execution for investors, say users, amid complaints that the information is hard to collect and compare because it is provided in multiple formats.

New EU Rules Boost Electronic Fixed Income Trading Volumes: Survey – Reuters

Electronic trading volumes in fixed income have jumped since the introduction of European rules a year ago, research by Greenwich Associates has found, the latest sign that tough legislation is upending the way market participants trade.

Shutdown is Starting to Hurt Trump’s Financial Deregulation Agenda – Reuters

The US government shutdown over President Donald Trump’s call for Congress to fund a wall he promised to build on the U.S.- Mexican border is threatening another campaign pledge to make rules easier to navigate for banks and corporations.

Concerns Mount as Trade Repositories Face Brexit Split – Waters Technology

Months away from the UK’s departure from the EU, much of the industry is still in the dark over operational requirements post-Brexit, and time is running out.

Libor’s Heir Hindered by Repo Volatility in Battle of Benchmarks – Bloomberg

The benchmark being eyed as a potential replacement for dollar Liborr is facing renewed scrutiny after a year-end surge in the market underpinning the new rate. With more volatility possible, Wall Street is increasingly wondering if the nascent Secured Overnight Financing Rate (SOFR) will be up to the task.

Why Bankers are Missing a Treat in Frankfurt – Financial Times

The boring tag has come into focus since the UK’s vote in 2016 to leave the EU. Where might thousands of bankers and their families restart their lives if they have to leave London?

Crypto News

French Ex-Central Banker Joins Board of UK Fintech Setl – Financial Times

Christian Noyer, the former governor of the Bank of France, is the latest big name in financial services to join the board of Setl, the UK blockchain technology group.

On The Block with Christine Sandler: Meet the Former NYSE Exec Who Made the Leap to Coinbase – The Block

When a recruiter approached Christine Sandler in late-2017 about coming out of retirement for an opening at Coinbase, he warned her it was “a little out there.” 

BitGo Partners with Genesis – Profit & Loss

BitGo, a provider of cryptocurrency financial services, has partnered with Genesis Global Trading, an OTC digital currency trading firm, to provide clients with the ability to trade digital assets directly from BitGo custody.

Company News

Lyons Joins FastMatch – Profit & Loss

David Lyons has joined FastMatch as head of product and business development, reporting to CEO Kevin Wolf.

TriOptima Launches Initial Margin Tool – Profit & Loss

TriOptima has launched triCalculate IM Analytics, a new tool to provide insight into the options for initial margin calculation, helps with the identification and prioritisation of in-scope counterparties and aids trading decisions to reduce future IM costs.

The Hot New Job in Fintech: Someone to Deal With Regulators – Bloomberg

US regulators have taken a greater interest over the last year in technology startups promising to reinvent finance. This newfound attention is compelling the biggest names in fintech to prioritize a part of their business that’s often ignored.

SocGen Considers Shutting $4.7 Billion Prop-Trading Unit – Bloomberg

Societe Generale is considering closing its proprietary-trading unit, people familiar with the matter said, a week after French rival BNP Paribas decided to shut its operation.

Morgan Stanley’s Worst-on-Street Bond Trading Sends Stock Lower – Bloomberg

Morgan Stanley’s fixed income traders succumbed to the same downturn that afflicted the rest of Wall Street in the fourth quarter, posting their worst results in three years and sending the shares tumbling.

More FinTech M&A Ahead – Markets Media

Last year was very busy for mergers and acquisitions of financial technology providers and 2019 is set to maintain the same pace according to consultancy Aite Group.

Bloomberg Expands China Bond Market Access Via Terminal – The Trade

Bloomberg has struck a deal with the China Foreign Exchange Trade System (CFETS) to become the first trading platform to offer access to both of the China’s interbank bond market (CIBM) Direct and Bond Connect schemes.

Market Savvy

Pound Set for Biggest Weekly Gain vs Euro in 16 Months on Brexit Hopes – Reuters

The pound weakened on Friday after stellar gains this week that set the currency up for its biggest weekly gain against the euro since September 2017 on growing confidence that a no-deal Brexit can be avoided.

Dollar Set for First Weekly Rise in Five Weeks on Rate Gap Bets – Reuters

The dollar steadied on Friday but was set for its first weekly rise in five weeks as doubts grew on the ability of other major global central banks such as the European Central Bank to start raising interest rates this year.

Lira Fired Up as Central Bank Plays It Safe Before Elections – Bloomberg

Turkish lira traders have plenty of risks to navigate over the next few months but the prospect of a central bank misstep before municipal elections in March may no longer be one of them.