Top Headlines
Outgoing GFXC Chair Potter Highlights Ongoing Work – Profit & Loss
Outgoing Global FX Committee chair Simon Potter remains optimistic about the impact of the FX Global Code and has signalled a busy work schedule for the Committee and its working groups over the coming year.
The Global Code Through the Prism of the Mark Johnson Decision (opinion) – Profit & Loss
Next week in New York we are due to have the oral arguments made in the appeal of former HSBC FX trading head Mark Johnson against his conviction for his conduct in handling a large order for Cairn Energy. I have noted on several occasions a mood in the FX industry wanting another look at the Global Code through the prism of the Johnson decision and I wonder if it will indeed now happen.
Currency Strategists Brace for Trade War Worse-Case Scenarios – Bloomberg (subscription)
As US-China trade-war rhetoric escalates without any plan for a resumption of negotiations, currency strategists are mapping out foreign exchange implications. For instance, Bank of America sees the Japanese yen strengthening as investors flee risky assets, and has recommended an associated euro-yen trade. Goldman Sachs warns that currencies from the euro to South Africa’s rand and Chile’s peso could be in the firing line.
Regulatory News
US to Mirror EU Moves in Scrutinizing Derivatives Clearers – Reuters
Foreign clearing houses for derivatives face tougher scrutiny for risks they would pose to the United States economy if they collapsed, a senior regulator said on Tuesday, mirroring recently-approved European Union reforms.
Bernie Sanders Revives Plan to Tax Stock, Bond and Derivatives Trades – Bloomberg (subscription)
Democratic presidential candidate Bernie Sanders introduced legislation that would impose a tax on trades of all stocks, bonds and derivatives in the US, a move he says would help curb Wall Street speculation and help finance his campaign promise to provide tuition-free college and cut student debt.
Brexit Damage ‘Irreversible’ for City Says Goldman Chair Barroso – Financial News (subscription)
José Manuel Barroso, the former president of the European Commission, believes Brexit will cause “irreversible” damage to the City of London.
ISDA CDM Deployed in UK Digital Regulatory Reporting Pilot – Regulation Asia
The International Swaps and Derivatives Association has announced the deployment of the ISDA Common Domain Model (ISDA CDM 2.0) to support the UK Financial Conduct Authority, the Bank of England and participating financial institutions in testing phase two of the digital regulatory reporting (DRR) pilot for derivatives. The DRR is a UK initiative to explore the use of technology to help firms meet their regulatory reporting requirements and to improve the quality of information reported.
Crypto News
Peter Thiel-Backed Crypto Startup Pays Out 6,567% Return – Bloomberg (subscription)
Billionaire moneymen Peter Thiel, Alan Howard and Louis Bacon have seen plenty of big paydays – but probably none as unusual as this one. A buyback by Block.one, a cryptocurrency startup, will return as much as 6,567% to its earliest investors in less than three years. That translates into $6.6 million for a $100,000 stake, a stunning result any time but especially in a market that crashed in 2018.
Crypto Exchange Bitfinex Wins Partial Stay on NY Info Demands – Bloomberg (subscription)
Bitfinex won a partial block on demands for information from New York Attorney General Letitia James while it seeks to dismiss a lawsuit accusing the companies behind the cryptocurrency exchange of hiding the loss of hundreds of millions worth of client and corporate cash.
US Copyright Office Says It Does Not ‘Recognize’ Craig Wright as Satoshi – CoinDesk
Even as bitoin SV enjoyed a Craig Wright/Satoshi bump Tuesday, the US Copyright Office was hard at work dispelling notions that it officially “recognized” anyone as the inventor of bitcoin.
Company News
Former Currencies Star Fights to Revive Hedge Fund After Loss – Financial Times (subscription)
Anil Prasad, the former global head of foreign exchange and local markets at Citigroup, once dubbed the “world’s most powerful FX banker”, is trying to turn round his hedge fund after a tough 2018 put a dent in his record.
Cboe FX Launches One-to-One Execution Solution – Profit & Loss
Cboe FX has launched a new solution called Cboe FX Point, which allows clients to manage one-to-one trading relationships utilising the platform’s technology, infrastructure and settlement relationships.
CME Brokertec Unveils Repo Solution – Profit & Loss
CME Brokertec has announced the launch of BrokerTec Quote, a new dealer-to-client RFQ trading solution for the European Repo market.
Study Shows Long-Only Investors Looking to Alternative Data – Profit & Loss
Traditional “long-only” investors are joining quantitative early-adopters in using alternative data to achieve investment alpha, according to a new study from Greenwich Associates.
Analysts Make Research Cooler, Wonkier and Bespoke to Lure Cash – Bloomberg (subscription)
As the industry wrestles with the problem of making money on its own, the stage is set for podcasts and novella-length thematic analyses.
BBH’s Former Global Head of e-FX Trading Sets Up New Firm – FX Week (subscription)
Brown Brothers Harriman veteran James Robertson co-founded New York-based technology firm Equitas Technology in March.
Market Savvy
Sterling Drops Again as Pressure Mounts on PM May to Step Down – Reuters
Sterling weakened again on Thursday as pressure mounted on Prime Minister Theresa May to name a date for her departure after a backlash over her last-ditch plans for Britain’s exit from the European Union.
Dollar Hits One-Month High as Uncertainty Plagues Europe and Asia – Reuters
The dollar hit its highest level in a month as economic and political uncertainties swept through Europe and Asia, pinning down most major currencies such as the euro and the yuan.