Top Headlines

Liquidity Tops FX Market Concerns in 2019: Survey – Reuters

Liquidity, or the ability to buy and sell currencies whenever needed with minimal market impact, is seen by currency traders as the biggest challenge for 2019, according to an annual client survey by JP Morgan published on Tuesday. The views of the biggest 200 institutional trader clients point to a tricky year ahead.

Nomura to Cut 50 Staff from Sales and Trading Unit – Financial Times

The redundancies will be spread across Asia and the US, but will fall heaviest on Europe, where the bank has been struggling to make money recently. Fixed income desks will bear the brunt of the cuts, as well as the bank’s London-based emerging market team.

Wen Handed New Role as JP Morgan Re-Structures – Profit & Loss

Eddie Wen’s role at JP Morgan has shifted from global head of e-commerce for the bank’s macro businesses – covering FX, EM, rates and commodities – to global head of digital markets. The change is part of the creation of a new organisation within JP Morgan called Digital Platforms & Services.

Citi and Eaton Vance Clear First FX Cash-Settled Forwards with CME Group – The Trade

The exchange operator said that it cleared two Euro-USD trades on 15 January, after introducing the derivatives as a capital-efficient way for clients to trade G10 FX.

Sterling FX Trading Turnover Rises in January: CLS – Reuters

Daily cash turnover in the British pound against the dollar rose to nearly $42 billion in January and swaps trading volume surged to a six-month high, as volatility increased on the back of Brexit negotiations, CLS data shows.

Regulatory News

Government Shutdown Is Over, So Where Is the Economic Data? – The New York Times (subscription)

The government is back. Government data, however, will have to wait awhile.

UK Financial Services Minister Expects Brexit Deal – Reuters

Britain is working hard for a Brexit deal but it would still be prudent to put in place contingency measures in case no agreement is reached, UK financial services minister John Glen said on Monday.

FCA: ‘We Can Be Libor Fallback Trigger’ –

The UK markets regulator has outlined the role it would play in the last days of Libor, in a speech that could help a shared form of legal protection emerge – and potentially avert hedging chaos.

Final FRTB “More Evolutionary than Revolutionary”: Refinitiv – Global Investor (subscription)

The risk factor test is easier to pass but key concerns banks have about data remain, an expert says

IMF Commends Hong Kong for Robust Financial Regulation and Supervision – Regulation Asia (subscription)

The IMF has assessed that robust financial regulation and supervision should help Hong Kong weather domestic and external shocks despite growing risks to the city’s outlook.

Crypto News

Two Groups Account for $1 Billion in Cryptocurrency Hacks, New Report Says – The Wall Street Journal (subscription)

Two groups of highly sophisticated cyber criminals likely have stolen some $1 billion in cryptocurrency hacks, a sum that accounts for the majority of the money lost in such scams, according to a new report from Chainalysis.

Bitcoin Drops to Lowest in a Month Amid Crypto Volatility – Bloomberg TV

Bitcoin’s painful 2018 crash continues, with the original cryptocurrency touching the lowest in more than a month on Monday.

Love Crypto But Not Its Volatility? Meet Stablecoins – Bloomberg

One of the biggest hurdles facing digital currencies is their extreme volatility. Bitcoin traded near $20,000 in December 2017 only to plummet to around $6,000 two months later – a range of price swings that makes Bitcoin nearly unusable for business owners or consumers. For some, the answer is a stable cryptocurrency, or stablecoin.

Company News

HSBC Picks New Head of Global Trading Business – Financial News

HSBC has promoted Georges Elhedery, the head of its business in the Middle East, North Africa and Turkey, to lead global markets, the trading division that generates billions of dollars in revenues for the bank every year.

Bank of America to Begin Brexit Job Moves Next Month – Bloomberg

Bank of America will start moving about 400 staff, mostly from London, in the next few weeks as the bank prepares for Brexit. Traders, sales and support staff will move to the bank’s European Union offices in Paris and Frankfurt, with the vast majority relocating to the French capital.

Deutsche Bank Bosses Mulled Merger with BNP Paribas, Société Générale – Handelsblatt

While Berlin lawmakers try to lure Germany’s largest bank into a tie-up with Commerzbank, it emerges that Deutsche sought partners further afield.

OTCXN Launches LiquiMatch FX ECN – Profit & Loss

OTCXN, a blockchain-powered capital markets infrastructure company, has launched a new foreign exchange trading venue, LiquiMatch FX.

Most Hedge Fund Managers Failed to Raise Money Last Year – Institutional Investor

The majority of hedge fund managers were unsuccessful at finding investors last year, according to new data from eVestment.

Market Savvy

Sterling Huddles Near 2-1/2 Month Highs on Brexit Nerves – Reuters

Sterling firmed a touch on Tuesday but held well off recent multi-month highs against the euro and dollar as traders weighed up whether lawmakers would back a key parliamentary amendment that would effectively take a no-deal Brexit off the table.

Investors Prepare for UK Pound Tumult Ahead of Commons Vote – Financial Times

Sterling held steady on Tuesday morning in London, but activity in the options market suggests some traders are expecting a turbulent ride during parliamentary proceedings this evening.

Dollar Trapped in Ranges on Trade War Concerns, Fed – Reuters

The dollar held near a two-week low on Tuesday as growing concern over the trade conflict between the United States and China heightened the safe-haven appeal of the Japanese yen and the Swiss franc.