Top Headlines

NY Fed Formalises Ashton Ban and Fine – Profit & Loss

The Federal Reserve Bank of New York has formally imposed a $1.2 million fine and a permanent ban on employment in the banking industry against former Barclays trader Chris Ashton, the former global head of FX spot trading at the bank.

A Full Set for ASIC as Macquarie Accepts Enforcement Undertaking – Profit & Loss

Following similar settlements from the big four Australian banks, Macquarie Bank has also accepted an enforceable undertaking (EU) from the Australian Securities Investment Commission (ASIC) in relation to the bank’s FX businesses.

Dollar Gains as Recent Trump-Led Selloff Seen Excessive – Bloomberg

The dollar gained as stocks and Treasury yields rose after investors judged the recent selloff on US political turmoil may be excessive given the backdrop of economic resilience and a potential rate increase.

Dollar Suffers Worst Week in a Year on Trump Scandal Nerves – Financial Times (subscription)

US currency wipes out all gains since November election after sacking of FBI director.

Pound Falls as Brexit Tensions Rise, Conservative Lead Narrows – Bloomberg

The pound fell below $1.30 after the UK hardened its Brexit rhetoric and polls predicted a narrower-than-expected win for Prime Minister Theresa May in June elections.

Europe Stutters as Political Rumblings Return – Reuters

European shares, the euro and the pound all stumbled as rumblings in Spain, Britain and Brussels reminded investors that the region still has plenty of political uncertainty left in the tank.

A New Dawn? – Profit & Loss (subscription)

May 25 marks the release of the full FX Global Code of Conduct, an event that has been much anticipated in FX circles.

There’s Just Nothing Unique About “Unique Liquidity” – Profit & Loss (subscription)

People who talk about “unique liquidity” are deluding themselves and trying to dupe us by claiming their market makers stream only to them.

Responding to the Technology Revolution – Profit & Loss (subscription)

Technological developments present new challenges to both financial services firms and their staff, warned John Ashworth, CEO of Caplin Systems, at Forex Network London.

The Giddy Messages Citi Traders Sent While Lehman Died – Bloomberg

As US officials and bank executives scrambled to save the global financial system after Lehman Brothers’s bankruptcy in the fall of 2008, Citigroup traders were doing what traders always try to do.

Regulatory News

Goldman’s Donovan Pulls Out of No. 2 Treasury Job Nomination – Bloomberg

Treasury Secretary Steven Mnuchin’s efforts to fill out the top ranks of the department were dealt a setback as a Goldman Sachs Group banker withdrew from consideration to serve as his deputy. 

Merkel Will Push for Weidmann as ECB President, Spiegel Says – Bloomberg

Angela Merkel and Wolfgang Schaeuble want to install a German at the head of the European Central Bank when Mario Draghi’s term expires in 2½ years, according to Spiegel magazine.

Bank of England Chief Met with White House on Financial Stability Issues – Reuters

Bank of England Governor Mark Carney met with Gary Cohn, the chief economic advisor to President Donald Trump, at the White House on Friday, the bank said.

City Firms Need to Take More Responsibility for Life After Brexit – Financial Times (subscription)

EU regulators will seek to pull business across the Channel unless challenged.

Japan Passes Law to Tighten Regulations on High-Frequency Trading – Reuters

Japan tightened regulations on high-frequency trading (HFT), passing into law measures that will require HFT firms to register with regulators.

These Are the Five Costliest Financial Regulations of the Past 20 Years – Business Insider

Last year, the Federal Register – the US government’s depository of rules and regulations – hit an all-time high of 81,640 pages. 

Company News

Change at the Top of Deutsche’s FX Business – Profit & Loss

Russell Lascala and Jon Tinker have been named as co-heads of FX at Deutsche Bank, reporting to Sam Wisnia, head of rates, who is now running an newly aligned rates and FX business.

CLS Elects Nine New Board Directors – Profit & Loss

CLS Group has named nine new directors to its board bringing the total to 23, of whom, five are outside directors.

CME Europe to Cease Trading by Summers End – The Trade

CME Europe will end trading of its FX and energy derivatives at the end of August, following the announcement it will shut down the London-based exchange by the end of this year.

Hotspot: A Fresh Approach – Profit & Loss (subscription)

One important element to its launch of outright deliverable FX forwards is it enables prime brokerage clients to enter a price into the platform and remain passive on the order book, a capability that no other platform currently offers.

Financial Services Firms Urged to Consider Ramping Up Cloud Investments – Computer Weekly

DTCC whitepaper claims financial services firms that shun cloud are at heightened risk of running into resiliency, security and performance issues.

US SEC Says NYSE Arca Has Updated Existing Application to List Bitcoin Investment Trust – Reuters

Securities and Exchange Commission says bitcoin ETF proposal would be the first of its kind approved in the United States.

Market Savvy

Stronger Risk Sentiment Helps Most Currencies; T$ Near Three-Week High – Reuters

Most Asian currencies edged higher, supported by a slight return in risk appetite though investors remained wary of the ongoing political turmoil in Washington.

Egyptian Pound ‘Cheapest in EM’ After Central Bank Hikes Rates: RenCap – Financial Times (subscription)

Analysts at emerging-market specialists Renaissance Capital had practically given up hope of an interest rate rise from the Central Bank of Egypt after predicting one earlier in the year.