Top Headlines
New Basel Rules on Capital Hit European Banks – Financial Times (subscription)
Top international central bankers and regulators have struck a long-awaited deal on bank capital rules that Mario Draghi hailed as the final step of post-financial crisis reforms and which resolves a transatlantic rift on the treatment of the industry.
- Global Bank Battle Over Basel III Finally Concludes – Wall Street Journal (subscription)
- Banks Emerge Winners from Final Post-Crisis Capital Rules – Bloomberg
Basel Rules Risk Fragmentation After Key Compromise – Risk (subscription)
Basel Committee ready to release new accord but patchy adoption of internal model floor and FRTB expected.
Bitcoin Plummets More Than 12 Percent to Below $15,000 – Reuters
Bitcoin tumbled more than 12 percent in volatile Asian trading, dropping below the $15,000 level after touching a record high above $16,000 earlier in the session.
Dollar Set for Biggest Weekly Gain in Six Weeks; Sterling Bounces – Reuters
The dollar rose against a trade-weighted basket of its rivals, on track for its biggest weekly rise in nearly six weeks as optimism grows that a US tax bill will pass.
Sterling Climbs to Six-Month High vs Euro After Brexit Deal – Reuters
Sterling soared to a six-month high against the euro, on relief that Britain and the European Union had managed to strike a deal to move on to talks about post-Brexit trade and a transition period.
Pound’s Acid Test on Brexit Is Yet to Come for Options Traders – Bloomberg
As the UK and the European Union announced they had secured a divorce deal, the pound rose – and its gains all but evaporated in a fleeting few seconds.
European Bank Demand for Dollars Squeezes the Euro – Financial Times (subscription)
Year-end demand by European banks for dollar funding has been flagged as one reason for the euro’s weakness in recent days.
Treasurers at Risk of Unidentified FX Exposures – Euromoney
The complexity of ERP and remote systems could leave treasurers exposed to FX risks.
A Bright Future for FX Futures – Greenwich Associates
New report findings show that FX investors can find significant cost savings – upward of 75% in some cases – by trading futures rather than executing a trade in the OTC markets.
The Exciting Growth Story Behind a Bubble Requires Respect – Financial Times (subscription)
Bitcoin price is following thse classic pattern of an investment mania.
Regulatory News
As the Bitcoin Boom Accelerates, So Does Scrutiny from Regulators – CNBC
The rapid surge in bitcoin has prompted Washington to take a closer look at digital currencies and the rise of initial coin offerings – a method used by internet entities to raise capital in exchange for a new cryptocurrency.
- Open Letter to CFTC Chairman Giancarlo Regarding the Listing of Cryptocurrency Derivatives – FIA
- Union Official’s Grilling of Bitcoin Expert Draws Rebuke from SEC Commissioner – Wall Street Journal (subscription)
Indonesia to Ban Digital Currency Transactions by Fintech Firms – Bloomberg
Indonesia’s central bank will bar financial technology companies from using digital currencies on their platforms as a global frenzy around bitcoin continues to lure more investors.
Lack of Transposition to Delay Mifid II Enforcement – Risk (subscription)
Some states won’t have adopted directive before June, making rule-imposition difficult, say lawyers.
The Trump Treasury’s Disturbing Regulatory Turn – Wall Street Journal (subscription)
It would give a Dodd-Frank agency powers that even the Obama administration thought too dangerous.
Company News
Wall Street Banks Hit Pause Button on Bitcoin – Wall Street Journal (subscription)
JPMorgan, Bank of America Merrill Lynch and Citigroup won’t offer clients access to first bitcoin futures market when it goes live Sunday.
Hackers Steal More Than $70 Million in Bitcoin – Wall Street Journal (subscription)
Theft prompts shutdown of NiceHash, which markets itself as the largest cryptomining marketplace.
ACI Retires The Model Code – Profit & Loss
One of the major codes of conduct developed around the turn of the century is being retired following the successful launch of the FX Global Code of Conduct.
Valdes-Rodriguez in at Credit Agricole – Profit & Loss
Crédit Agricole CIB Global Markets Division has announced that Robert Valdes-Rodriguez is joining the bank as head of financial institutions foreign exchange sales for North America.
Market Savvy
Most Asian Currencies Inch Down as Dollar Gains on Funding Bill – Reuters
Most emerging Asian currencies traded flat to marginally easier as the dollar gained on the passage of a bill to temporarily extend US government funding, raising investors’ optimism that a tax reform bill would also pass.
Russian Rouble Slips on Lower Oil Prices, Higher State FX Purchases – Nasdaq
The Russian rouble weakened, dragged down by falling oil prices and pressure from increased state purchases of foreign currencies.