Top Headlines

Leaving London: Voices from the Financial Front Lines of Brexit – Financial Times

The Financial Times talks to people involved in moves from the City of London to rival EU cities.

Why the Buy Side Should Sign Up to the Global Code (opinion) – Profit & Loss

There needs to be a clear emphasis on the client to be more specific in their order placement. That alone is a good reason why the buy side should sign up for the Code; it would take out ambiguities and be fairer for all parties.

Refinitiv Survey Finds AI Widely Used But Data Inadequate – Profit & Loss

A new artificial intelligence/machine learning survey launched by Refinitiv has found that while the use of these techniques is pervasive in the financial community, poor quality data impedes participants’ ability to leverage the advantages.

Big Banks to Report First Quarter Results With Lowered Expectations – Reuters

Investors will focus on falling profits, a more dovish Federal Reserve and lower interest rates as major US banks kick off what analysts expect to be the first quarter of contracting corporate earnings since 2016.

SocGen Plans 700 Paris Job Cuts After Tough First Quarter, Sources Say – Bloomberg

The French bank is speeding up staff reductions at its headquarters after tough trading conditions persisted into the new year and may announce the cuts as soon as next week. Bruno Benoit, head of the key fixed income and currencies trading unit, is among high-profile executives to leave the firm.

In the FICC of It (podcast) – Profit & Loss

This week’s podcast discusses some of the challenges facing CTAs when their trend-following models aren’t working. The podcasters also discuss a recent whitepaper published by Citi, in which the bank outlines a new pricing model for its FX prime brokerage business going forward, and why there is a distinct air of optimism around bank e-FX desks at the moment.

Regulatory News

CFTC Provides Extended Brexit Relief – Profit & Loss

The Commodity Futures Trading Commission’s Divisions of Swap Dealer and Intermediary Oversight (DSIO), Market Oversight (DMO), and Clearing and Risk (DCR), have announced they will grant no-action relief to provide greater certainty to the global marketplace in connection with the anticipated withdrawal of the UK from the European Union with or without a ratified withdrawal agreement.

How the MAS is Using AI to Spot Rogue Trading Behaviour – FX Week (subscription)

The Monetary Authority of Singapore has started using an advanced data science tool named Apollo to help enforcement officers detect misconduct in financial markets, the central bank said in its inaugural enforcement report.

Non-Financial Firms Face Clearing Rules Amid Tight Deadline – Global Investor (subscription)

Non-financial firms fear there is not enough time to adapt to Emir Refit calculations, a partner at Linklaters says.

Cboe Changes Brexit Share Trading Plans After Regulator Clash – Reuters

Cboe has decided to offer trading in all shares in London and Amsterdam following a row between regulators over where shares can be traded if Britain leaves the EU on April 12 without securing a delay or a transition deal with Brussels.

Crypto News

Bitcoin Futures Volume Skyrockets 950% Since April 1 – Bitcoinist

The latest rally of Bitcoin’s price has caused the volume of CME Bitcoin futures contracts to surge, trading upwards of $683 million. This marks an increase of around 950 percent since the beginning of the month. 

SEC Guidance Sparks Fear and Loathing in Crypto Industry – Fortune

When the Securities and Exchange Commission issued guidelines for cryptocurrency companies that want to sell digital tokens, many in the industry praised the SEC for new regulatory clarity, but also privately seethed the agency had gone too far.

Bitcoin Exchange Kraken Sued By Former Trading Desk Manager – Bloomberg

A former employee of Kraken, one of the oldest Bitcoin exchanges, is suing the crypto platform for allegedly failing to pay him for work he did.

Coinbase Tops JP Morgan in LinkedIn List of Most Popular Employers – CoinDesk

Cryptocurrency exchange Coinbase has ranked above investment banking giant JP Morgan in LinkedIn’s top 50 US employers list for 2019.

Company News

Refinitiv Hits New Peaks as Platforms Confirm March Rebound – Profit & Loss

Data from CME Group, Integral Development and Refinitiv, which reports a new high in average daily volume, confirms the picture established by three other platforms last week of a rebound in March FX volumes.

Speedbumps Redux. Sort Of – Tabb Group

ICE’s recently proposed speedbump for silver and gold futures contracts has ignited the latest market fight over speedbumps. But this isn’t the same IEX-type speedbump that caused an all-out ruckus in the US equities market. ICE’s proposed asymmetrical speedbump could potentially have an even more damaging impact on price discovery and liquidity.

Societe Generale Appoints UK Global Markets Head – The Trade

Antoine Broquereau is now responsible for leading all trading activities across asset classes in the UK. He will retain his current position as global head of engineering of fixed income and currencies within the global markets business.

Deutsche Bank Introduces Client Clearing Through LCH CDSClear – The Trade

Deutsche Bank has gone live as the first German investment bank to offer client clearing for credit default swaps through LCH CDSClear.

Knight to Depart Citi – Profit & Loss

Alex Knight is leaving his position as a director and global head of sales and client coverage for FX prime brokerage at Citi.

Ensemble Capital Signs With Numerix – Profit & Loss

Singapore-based absolute return global AI fund Ensemble Capital has gone live with Numerix’s Oneview Asset Management solution for risk and portfolio management. 

Commerzbank CEO Says Merger Would Add Much-Needed Scale – Bloomberg

Commerzbank chief executive officer Martin Zielke, almost three weeks into formal discussions about a combination with Deutsche Bank, is lobbying hard to overcome internal opposition to the idea.

Deutsche Bank Dismisses Credit Trader Over Client Chats – Bloomberg

Deutsche Bank dismissed a trader after finding that he disclosed details about Credit Suisse Group’s involvement in a trade, according to people with knowledge of the matter.

Market Savvy

Pound Holds Above $1.3 as Crunch Brexit Talks Continue – Reuters

Sterling held above $1.3 on Monday but traded in a narrow range reflecting nervousness in the market about key Brexit talks between Prime Minister Theresa May and the opposition Labour Party.

Euro Nears One-Month Lows as Caution Grows – Reuters

The euro sat near a one-month low hit last week as investors grew cautious about the outlook for the currency before a European Central Bank meeting this week.

Yen’s Outlook Worsens as Traders Turn Bearish, Outflows Increase – Bloomberg

The omens are looking bad for the yen. Traders have boosted short positions on Japan’s currency for six straight weeks as signs that economic growth is slowing make it more likely the central bank will maintain its record monetary stimulus.