Top Headlines

No Sleep for Traders as UK Sees Most Turmoil Since Brexit Vote – Bloomberg

It’s been a tumultuous week in UK markets, and for traders that’s meant cancelling dinner plans and waking up in the night.

The Industry Must Not Become Complacent about the FX Global Code (opinion) – Profit & Loss

Today’s column has a problem with complacency and worries about the chances of future generations forgetting the principles of the FX Global Code the way they did previous best practice documents. Luckily, being a “solutions based” forum, it has an idea that some may find controversial to help ensure this doesn’t happen.

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

Topics include a discussion about an eye-opening chat at the start of the Profit & Loss conference in Hong Kong, which looked at the chaos in Washington DC, the evolution of AI and fintech and the differing attitudes to crypto markets in Asia and the US. The podcast also includes observations on some interesting answers to questions on the future ofthe FX swaps market during the liquidity panel.

Competition Watchdog Launches Probe into ‎’Bond Market Cartel’ – Sky News

A Competition and Markets Authority (CMA) investigation into “certain types of financial product”, revealed in a brief statement on Friday, is focused on activity in London’s multi-billion pound bond markets.

Do Not Expect Clients to Curb Banks’ Bad Behaviour; They are Sharks Too – Financial News (subscription)

New research suggests that far from penalising banks that have a reputation for misconduct, clients actually reward it.

Regulatory News

Incentives to Clear “Less Strong” for Smaller Firms: FSB – Global Investor (subscription)

Authorities should consider the effects of clearing reforms on non-systemically important firms.

City Firms Step Up Brexodus Plans Amid Political Turmoil – Financial News (subscription)

Banks and asset managers across the capital are preparing for the harshest possible exit from the European Union after May’s cabinet ministers approved a controversial 585-page Brexit agreement that triggered a flurry of ministerial resignations and prompted sharp falls in the value of the pound.

The Day the Data Stood Still – WatersTechnology (subscription)

If Brexit occurs without a deal between the UK and EU in place, what happens to the flow of information between regulators like the Financial Conduct Authority and the European Securities and Markets Authority?

Goodbye Mifid II? Don’t Expect a Brexit Bonfire of Regulation – Financial News (subscription)

It is tempting for the UK to try to overhaul EU rules but swift changes to regulation would be premature.

Japan Dealers Unhappy with All Libor Fallback Options – Risk.net (subscription)

Swaps users in Japan have criticised the proposed methods for calculating a fallback rate for legacy Libor trades, responses to a consultation paper issued by the International Swaps and Derivatives Association reveal.

SEC Whistleblower Program Has Record-Breaking Year – The Wall Street Journal (subscription)

The Securities and Exchange Commission this fiscal yearreceived the largest number of tips from whistleblowers—and paid out the most in rewards—ever.

MFA Proposes ‘Harmonised Primary Regulator Approach’ to SEC and CFTC Regulation ofDual Registrants – HedgeWeek

The Managed Funds Association has written to both the Commodity Futures Trading Commission and the Securities and Exchange Commission proposing a ‘harmonized approach to the regulation of firms that are SEC-registered investment advisers and also CFTC-registered commodity pool operators.

Crypto News

Furious Traders Slam Crypto Exchange for Fiddling With Contracts – Bloomberg

An unorthodox move by one of the world’s biggest cryptocurrency platforms to change the terms on $135 million of derivative contracts has infuriated some traders and saddled several with losses, underscoring the risks of using unregulated virtual currency exchanges.

Switzerland Gives Green Light to First Cryptocurrency ETP – Financial Times (subscription)

Switzerland’s main stock exchange has given a green light to the world’s first exchange traded product tracking multiple cryptocurrencies, just as the price of bitcoin, the most popular digital coin, has dropped to its lowest level for more than a year.

Bitcoin’s Repeated Splits Undermine its Long-Term Value – Financial Times (subscription)

A bit like the Burberry scarf, bitcoin has become a victim of its own success, with countless knock-offs undermining its value.

Banks Employ More Chefs Than Cryptocurrency Experts – Financial News (subscription)

Lack of regulation and concerns of an overheated market have dissuaded big institutions from hiring specialists.

Israeli Investment House Offers Crypto Funds for Institutions – Bloomberg

Silver Castle, Israel’s first dedicated cryptocurrency investment firm for institutional and accredited investors, launched two funds this month and expects to have $50 million under management by the end of the year.

Company News

HSBC Said to Hire from Goldman Sachs in Latest Wall Street FX Moves – eFinancialCareers

There have been more moves in FX sales and trading on Wall Street as some banks look to cut costs and others try to bulk up their teams.

Kwok Joins State Street – Profit & Loss

Louisa Kwok has joined State Street Global Link in London as product manager in its trade services business, reporting to Kate Lowe, global head of trade services.

Cost Efficiency Without Sacrificing Access to Liquidity – FX Week (subscription)

Richard Elston, head of institutional at CMC Markets, talks about the transforming landscape offoreign exchange, including structural changes and fragmentation in FX markets, organisations’ varying liquidity needs and ashift towards cross-asset trading on the buy side.

BNP’s Skittish Traders Add to Challenges for Worst Bond Unit – Bloomberg

“The thing that you should not underestimate is thepsychology of traders,” Olivier Osty, head of global markets at BNP Paribas, said in an interview.

Refinitiv Offers Aggregate Bond Feed – Finextra

Refinitiv, formerly the Financial and Risk business of Thomson Reuters, has launched an aggregate bond service to help clients access fixed income trade data that is available as a result of MiFID II in a single, simple aggregated data feed.

Market Savvy

Sterling Edges Higher as May Battles to Save Her Brexit Deal – Reuters

Sterling rose on Monday as British Prime Minister Theresa May sought to win support for her draft European Union divorce deal which has come under attack from many in her ruling Conservative Party.

Brexit Deal Backlash Sends Investors into Defensive Territory – Financial Times (subscription)

Political uncertainty ripples through UK financial markets as they seek to cover bases.

Dollar Bulls Wary after Biggest Weekly Drop in Two Months – Reuters

The dollar steadied on Monday after posting its biggest weekly drop in two months last week as investors grew cautious about the near term outlook for the greenback after dovish comments by US policymakers.

Rate Hikes and Trade Optimism Bring Emerging Markets Risk-Takers Back – Bloomberg

Emerging markets rebounded as central banks including those of Indonesia and Mexico signalled commitment to support their currencies.Signs of progress in resolving US-China trade frictions bolstered riskier assets later in the week.