Top Headlines

Lack of Transactions Still a Problem for Benchmarks – Profit & Loss

Reform of interest rate benchmark setting processes continues but concerns remain about the lack of transactions during some of the rate setting windows, the Financial Stability Board (FSB) says.

In HSBC Currency Trade Charts, US Offers Its Theory of a Crime – Bloomberg

Government hired expert witness to compile complex data.

Dollar Pulls Back from Post-Jobs Data Highs – Financial Times (subscription)

The dollar index, which tracks the currency against a basket of six of its peers, was down as much as 0.5 per cent earlier before trimming some of its losses to stand 0.3 per cent lower shortly before publication time.

Sterling Flat After Gains as Doubts Resurface – Reuters

Sterling was flat after two sessions of gains as doubts emerged on whether entrenched expectations of higher UK interest rates were reasonable given a backdrop of uncertain Brexit negotiations.

Sterling Investors Take Comfort Where They Can – Financial Times (subscription)

What do hedge funds and currency speculators know about sterling that no one else does?

Catalonia Relief Sends Euro to Two-Week High – Reuters

The euro climbed to a two-week high against a broadly weaker dollar on relief that Catalonia had stopped short of formally declaring independence from the rest of Spain.

Indian FX Execs Back Rupee to Perform in 2017 – Profit & Loss

Perhaps not a huge surprise, but business leaders and FX executives in India expect the rupee to be the top performing currency in 2017, according to a new Bloomberg survey.

Dollar Revival Interrupts Carefree Year for EM Investors – Financial Times (subscription)

As the Turkish lira slides, the South African rand languishes at a six-month low and the US dollar finally stirs, investors are asking whether they should worry about emerging market currencies again.

Cross-Currency Basis, RIP? – Financial Times (subscription)

It was one of the more interesting stories of 2016 – but now it’s gone.

Unwanted Kingdom: Managing No-Deal Brexit Risks – Risk (subscription)

UK-based dealers must plan now if they are to handle trades that extend beyond Brexit day.

Regulatory News

The CFTC Is Still Considering a Cryptocurrency ‘Delivery’ Definition – Coin Desk

The US Commodities Futures Trading Commission (CFTC) is reportedly still working to define when exactly a cryptocurrency can be deemed “delivered” due to the complexities of cryptographic key management.

China and South Korea Fail to Extend $56bn Currency Swap – Financial Times (subscription)

China and South Korea have failed to extend their $56bn currency swap deal amid diplomatic tension over Seoul’s instalment of a controversial US missile shield.

Emerging Asian Markets Question One-Size-Fits-All Bank Rules – Risk (subscription)

Nations such as the Philippines seek a more proportionate approach to level the playing field with global lenders.

Putin Backs Cryptocurrency Rules and Warns of ‘Serious Risks’ – Bloomberg

President Vladimir Putin called for regulation of cryptocurrencies but stopped short of backing a broad ban as a debate rages over how Russia should handle the increasingly popular financial instruments.

Company News

Nex Launches New Workflow Tool – Profit & Loss

NEX Group (Nex) has launched a new cash and collateral movement workflow tool that enables clients to make cash movements and money market sweeps.

Ex-Barclays Boss Antony Jenkins: The Heyday of Banking Will Never Return – The Telegraph

The former boss of Barclays Antony Jenkins has warned that the heyday enjoyed by big banks in the lead-up to the financial crisis will never return as the rise in artificial intelligence (AI) threatens some of their services.

Bitcoin Suffers Mystery Flash Crash on Popular Cryptocurrency Index – CNBC

Bitcoin appeared to have a flash crash on Tuesday morning after falling over $600 in a few minutes, but only one index logged the price move.

Blockchain Company Ripple Says It Has $15bn War Chest – Financial Times (subscription)

The head of Ripple, one of the biggest blockchain companies, has said its $15bn of cryptocurrency reserves could be used to acquire or partner with rivals, as it seeks to dominate its fast-moving sector within financial technology.

Market Savvy 

China’s Yuan Eases as Corporate Dollar Demand Offsets Stronger Fix – Reuters

China’s yuan eased slightly against the US dollar at midday, as corporate demand for the greenback outweighed a much stronger official fix.

Turkish Lira Slides as WSJ Reporter Sentenced to Prison – Bloomberg

The lira erased gains against the dollar after the White House backed its ambassador’s decision to suspend visas from the country and a Turkish court convicted in absentia a journalist from The Wall Street Journal.