Top Headlines 

Judge Tosses Axiom Last Look Class Action Against Deutsche – Profit & Loss

A New York judge has thrown out a class action lawsuit led by Axiom Investment Advisors against Deutsche Bank, which claimed the bank abused the practice of last look in its foreign exchange trading. 

Unhedged FX Risks Hit Corporate Earnings – Profit & Loss

The results of a risk management survey by HSBC show that 70% of CFOs said that their companies have experienced lower earnings due to significant unhedged FX risk in the past two years, and these were risks which their treasuries could have avoided. 

The Desk Benchmark: Volumes Down, Efficiency Up – The Desk

Fewer traders are managing greater volumes of trading in rates, while the volume of electronic trading is increasing across instruments. 

The Death of Passive Management? – Institutional Investor

So-called passive funds have trounced their active peers in recent years. But that doesn’t mean these strategies are a safe bet for the future.

Gold Mine, or Minefield? –

On the one hand, dealers are itching to talk about the clever ways they plan to make money from proprietary data – information about order flows and client positioning, for example – but equally they are terrified about how clients might react. 

Regulatory News 

Can We Survive the Next Financial Crisis? – Bloomberg

Ten years ago this week, Lehman Brothers Holdings collapsed, triggering the worst financial crisis in almost a century, a seismic event that still reverberates today.

Corporates Fear EU Will Spike Emir Refit Reporting Relief –

Corporates are fretting that the benefits of a proposed European reprieve from reporting derivatives transactions to trade repositories will be limited, because legislators are divided over how to treat European Union corporates’ trades with non-EU banks. 

FBF Advocates Clearing Exemption for Specific Intragroup Transactions – Global Investor (subscription)  

French Banking Federation says all intragroup transactions for risk management should be exempt from Emir clearing obligations. 

Broadridge Launches MiFID II Ex-Post Reporting Solution for Investment Managers – The Trade

The new service is set to help investment managers meet reporting obligations for the end of April 2019.

UK Regulator Quizzes Banks on Margin Gaps – (subscription)

The UK’s prudential regulator has instructed banks to submit data on risks not covered by the model they use for calculating initial margin under the non-cleared margin rules.

The Impact of Brexit on European Versus US Derivatives Trading – The Desk

Could the aftershock of Brexit land a win for the US?

A Regulatory Perspective on Crypto: Q&A with DTCC’s Mark Wetjen – Tabb Forum

It’s still early days for regulators and cryptocurrencies. But with growing interest from retail investors in crypto currency markets, regulators are increasing their scrutiny of the digital currency. 

Crypto News 

Breaking the Blockchain: Major Projects Shelved as Hype Fades – Financial News (subscription)

Highly anticipated trials using the technology underpinning cryptocurrencies are being sidelined or cancelled entirely. 

Cryptocurrencies Slide after Trading Suspension of Trackers – Financial Times (subscription)

Cryptocurrency prices suffered another blow as the main US regulator temporarily halted trading in a pair of securities tracking the most popular digital assets.

Crypto Exchanges Embrace Controversial Practices to Win Market Share – Bloomberg

With digital currency trading volume having plunged, some of the biggest crypto exchanges are turning to unorthodox practices to boost activity and win market share. 

Winklevoss Twins Receive New York Approval to Launch New Crypto Coin – Bloomberg

Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the US dollar, creating more regulated and transparent competitors to Tether and other so-called stable coins.

Cryptocurrency Startups Combine as Wall Street Blockchain Effort Falters – The Wall Street Journal (subscription)

Chain and Lightyear, built around the technology underpinning bitcoin, are combining into a new company called Interstellar. 

Novogratz Brings Crypto Bank Galaxy Digital to London – Financial News (subscription)

Galaxy Digital, the cryptocurrency-focused merchant bank set up by former Goldman Sachs partner Mike Novogratz, has opened an office in London. 

Company News 

Thomson Reuters Rolls Out Trade Analytics Product – Profit & Loss

Thomson Reuters has introduced Trade Performance Analytics (TPA) for FXall users, a new analytics solution aimed at helping FX traders assess the quality of their trade execution, identify new opportunities to improve performance, and demonstrate best execution to their stakeholders.

Massive Cost Cuts in Focus as Buyside Mulls Refinitiv Bond –Reuters

Millions in projected cost-savings at Refinitiv – previously Thomson Reuters’ Financial & Risk division – will be a key consideration for investors mulling the US$13.5bn-equivalent loan and high-yield bond sale financing the buyout of the business.

Exegy, TNS Team Up to Offer FX Trading Platform – Profit & Loss

The firms will combine TNS’ market connectivity and hosting solutions and Exegy’s Trade Port FX, which delivers normalised FX market data and execution services to major FX venues, to offer a fully managed and integrated FX trading platform.

Acquitted Libor Broker Returns to Help Spot Suspicious Trading – Financial News (subscription)

Danny Wilkinson, one of six brokers cleared of rigging the key Libor benchmark rate, has returned to London to help unearth potential wrongdoing among traders. Wilkinson has been appointed market surveillance director at startup Raidne.

IHS Markit Adds BidFX to MarkitSERV FX Post Trade Network – IHS Markit

IHS Markit says that MarkitSERV now offers integration with execution management system BidFX for straight through post-trade processing of FX trades, including FX spot, forwards, swaps and NDFs.

Eurex Clearing Adds First Nordic Bank to Partnership Program – Global Investor (subscription)

Danske Bank has joined Eurex Clearing’s partnership program and has become a clearing member for OTC interest rate derivatives.

Market Savvy 

Sterling Rises to Five-Week High as Markets Bet on Brexit Deal – Reuters

Sterling trimmed earlier gains but held near five-week highs in volatile trading on Tuesday, with sentiment boosted by overnight comments from the European Union’s chief negotiator that a Brexit deal is possible within weeks.

Euro Rises as Italian Debt Concerns Ease – Reuters

The euro rose on Tuesday as easing concerns about Italian debt boosted the single currency for a second day, while broader moves in forex markets were contained as investors fretted about the next developments in the Sino-US trade dispute.

Australian Dollar Dips to 29-Month Low, Greenback Strengthens – Financial Times (subscription)

Foreign exchange and sovereign debt markets showed signs of life in early Asia Pacific trading with currencies losing ground against the dollar and Australian dollar touched a 29-month low.