Top Headlines

Lagarde Says IMF Greek Deal Far Off as Talks Roiled by Leaks – Bloomberg

International Monetary Fund Managing Director Christine Lagarde rebuffed Greek government calls to replace top officials overseeing the country’s bailout and said the IMF is “a good distance away” from an agreement that would allow for additional loans to Europe’s most indebted state.

Dollar Little Changed amid Continued Bets on Dovish Fed – Reuters

The U.S. dollar hit its lowest against the yen in two weeks on Monday on continued expectations of a slow path of Federal Reserve rate increases this year, but was mostly flat against a basket of currencies after a confident-sounding speech from a top Fed official.

Rajan Cuts India Rates to Five-Year Low, Stays Accommodative – Bloomberg

India’s central bank lowered its key interest rate for the first time in six months and said it would look for more room to ease as it watches monsoon rains.


Looking Back at Boca: Continuity and Change in the Rates Markets – Profit & Loss

Last month’s FIA conference in Boca saw representatives from UBS, Tradition SEF, Citadel Securities, CME and Eaton Vance meet to discuss the future of interest rate trading in cash, futures, swap futures and OTC markets.

Australia’s Central Bank Warns on Rising Currency – Marketwatch

Australia’s central bank warned that a rising currency could interfere with a transition to a broader based economy Tuesday, fueling expectations of interest rate cuts to come later in the year after the bank kept its powder dry at its latest policy meeting.

April Angst Follows March Madness for Emerging-Market Currencies – Bloomberg

Emerging-market currencies extended their retreat from an eight-month high as falling oil prices and hawkish comments from a Federal Reserve official damped demand for developing-nation assets.


Regulatory News

Banking Risks: Basel’s Trickle-Down – Financial Times (subscription)

In so-called “Chinese water torture” drops of water fall slowly on the forehead until insanity takes hold. Bankers have a modern name for it: compliance. Since the financial crisis banks have been forced to raise $283bn in equity, a few drops at a time, to meet minimum standards of safety, according to Dealogic.

U.S. Treasury Announces Additional Action To Curb Inversions, Address Earnings Stripping – Releases Updated Framework For Business Tax Reform As Model For Future Action – MondoVisione 

Today, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued temporary and proposed regulations to further reduce the benefits of and limit the number of corporate tax inversions, including by addressing earnings stripping. By undertaking an inversion transaction, companies move their tax residence overseas to avoid U.S. taxes without making significant changes in their business operations.

Pair’s Assets Targeted Over FX Trading Scam – Japan Times

The Nagoya District Public Prosecutor’s Office is set to seek a court order to freeze the assets of two individuals accused in a multibillion-yen currency investment fraud case, informed sources said Monday.

EU Watchdog Backs More Competition in Derivatives Clearing – Reuters

Nasdaq Inc, broker ICAP Plc and London Stock Exchange Group Plc won regulatory backing on Monday for their efforts to ensure more customer choice in the trading and clearing of financial derivatives in the European Union.

Company News

Microsoft, R3 Announce Blockchain Partnership – Profit & Loss

Microsoft and the R3 Consortium announced a strategic partnership that they claim will accelerate the use of distributed ledger technologies, also known as blockchain, among financial services firms.

ICE Prepares £10bn LSE Bid to Rival Deutsche Boerse – Investment Week

The owner of the New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE), has secured funding for a £10bn rival bid for the London Stock Exchange, according to reports.

Funds Upping Pressure to Get Best Execution on FX Trades – Pensions & Investments

Pension funds are focusing more on ways to reduce their foreign-exchange trading costs by negotiating better terms with their custodians — in the case of one public pension fund, bypassing the banks entirely — and requiring their money managers to get best execution on FX trades.

Market Savvy

Top Currency Trader Says Too Soon to Buy Dollars Despite Data – Bloomberg

Citigroup Inc., the world’s biggest currency trader, says it’s “too soon” to buy the U.S. dollar after it slumped to a nine-month low and economic data came in stronger than forecast.


China Inc.’s Record Foreign Deal Spree Shows Fear of Weaker Yuan – Bloomberg

China Inc. can’t buy foreign companies fast enough, and the yuan’s trajectory helps explain why.

‘Brexit’ Debate Is No. 1 Euro Threat for Top Currency Forecaster – Bloomberg

For the top currency forecaster of the past quarter, the next three months will be all about the looming vote on Britain’s membership in the European Union.

Renminbi Bears Rethink Currency Bets – Financial Times (subscription)

If a speculator-loathing central bank were planning a victory celebration, it could do worse than make its currency free to borrow offshore, while pushing its exchange rate to its strongest this year.

Press Releases

CME Group Appoints Paul Houston as Global Head of FX

CME Group, the world’s leading and most diverse derivatives marketplace, today announced the appointment of Paul Houston as Executive Director, Global Head of FX.

ICAP Electronic Markets Volumes – March 2016

ICAP has released volume data showing activity in its electronic markets last month.

Fidessa Explores Challenges of Counterparty Exposure

Fidessa group plc (LSE: FDSA) has today published a new paper entitled Counter (party) intuitive. Authored by Steven Strange, Compliance Product Manager at Fidessa, the paper examines how the counterparty landscape has changed for buy-sides and what they can do to ease the burden it now presents.

Industry Events

FOW: Derivatives World, 12-13 April in Hong Kong

FX Week FX Invest North America, 12 April in Boston, MA

Profit & Loss Forex Network London, 14 April in London, UK

Profit & Loss Latin America, 20 April in Mexico City

ACI World Congress 2016 – Indonesia, 26-30 April, Jakarta

Eurofinance:  Asia Treasury, 18-20 May in Singapore

Profit & Loss Forex Network New York, 26 May, New York City

FIA: IDX 2016, 7-8 June in London, England

Profit & Loss Forex Toronto, 9 June, Toronto

Profit & Loss Scandinavia, 13 September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL