Pound Holds on to Gains as Parliament Awaits Brexit White Paper – Financial Times (subscription)
The pound is holding steady in early trading, the morning after the country’s MPs approved the first stage of the country’s Article 50 talks to leave the EU.
Dollar Gyrates After Fed Decision – Financial Times (subscription)
Dovish or hawkish? The market can’t seem to make up its mind over what to make of the statement that accompanied the Federal Reserve’s latest interest rates decision.
Goldman Fund Manager Ignores Trump Noise to Bet on Dollar – Bloomberg
The dollar’s worst start to the year in more than a decade is just a blip on its path to further gains, according to Goldman Sachs Asset Management, which oversees more than $1 trillion.
Specter of Global Trade War Rises as Trump Puts ‘America First’ – Bloomberg
World leaders aren’t taking Donald Trump’s trade barbs lying down.
Tokyo Market Unfazed by Trump Currency Comments – Nikkei Asian Review
Tokyo investors did hear fiery comments from Washington aimed at softening the dollar but stuck with their assessment that US and Japanese monetary policy will stay on divergent tracks, sending stocks higher and the yen weaker.
US Objections Revive European Criticism of German Trade Policy – Financial Times (subscription)
Anger in EU capitals over Berlin’s use of euro reignited after Trump aide speaks out.
Strong Results from FX Platforms in January – Profit & Loss
The relatively volatile start to 2017 in FX markets has been reflected in strong data from the first three venues to report, with one platform achieving a new high in average daily turnover (ADV) and two others matching recent peaks.
Swaps Collateral Rules Put Market at Risk of Splintering – Bloomberg
Global regulators’ plans for a coordinated start next month to swap-collateral rules are breaking down, with countries taking different approaches to the deadline and traders in the $544 trillion industry scrambling to get ready.
The Problem with Agency Execution – Profit & Loss
The closure of the Bloomberg Tradebook FX venue tells us about fundamental issues with the agency model.
FSB Unveils Guidance on ‘Living Wills’ for Clearing Houses – Financial Times (subscription)
A blueprint for the first set of worldwide, bespoke rules around “living wills” for clearing houses and other parts of the vital infrastructure that underpins the financial system has been revealed by global standard-setters.
Esma Unveils Latest CCP Stress Tests – The Trade
Esma has launched a pan-EU stress test exercise with the aim of identifying individual shortcomings for the regulator to address.
Germany Said to Let Banks Fleeing Brexit Keep Risk Models – Bloomberg
Germany’s financial regulator offered to allow most banks that move operations there because of Brexit to keep current models for setting capital requirements for as long as two years, people with knowledge of the matter said.
Trump Transition Stalls Global Revamp of Bank Capital Standards – Bloomberg
A revamp of global bank capital standards is on hold during the change of administration in Washington, with US and European Union negotiators locked in a “fundamental disagreement” over how to stop banks gaming the rules, according to a senior EU official.
Trump, Wall Street and the ‘Banking Caucus’ Ready to Rip Apart Dodd-Frank – Public Integrity
President Trump said he will ‘do a big number’ on the 2010 financial regulation law.
UAE Central Bank Clarifies Virtual Currency Ban – Gulf News
The authority exempts digital currencies like Bitcoin following January 1 regulatory framework that appeared to prohibit them.
World First Closes FX Options Business – Reuters
Currency broker World First is closing its corporate options business, in a move that will affect up to 50 staff at the UK-based company.
Eurex Tees Up OTC Forex Clearing with CLS – Risk (subscription)
Net settlement at CLS could slash liquidity risks for CCPs clearing OTC forex contracts.
WSBA Announces Public Blockchain Working Group – Profit & Loss
The Wall Street Blockchain Alliance (WSBA) has announced a new working group that will focus on native assets riding upon public blockchains, such as Bitcoin, Ethereum and Zcash.
BT Buys IP Trade – Profit & Loss
BT has signed an agreement to acquire IP Trade, a provider of communications and collaboration solutions for trading floor environments and command-and-control dispatch centres.
Mapping Out the Plan – Profit & Loss
Neill Penney, co-head of trading at Thomson Reuters, talks to Galen Stops about the recent changes in the firm’s FX business and details how it plans to continue developing it in 2017.
WEX Enhances Options Algorithm Suite – Automated Trader
Wolverine Execution Services (WEX), a provider of technology and execution services, has announced the ability to send complex orders to its Best-X options algorithm and the addition of two FIX based options algorithms, Vol and TWAP.
Won, Taiwan Dollar Climb as Fed Statement Offers No Surprises – Reuters
Emerging Asian currencies advanced against the dollar after the US Federal Reserve stuck to its mildly upbeat economic view but gave no hint on rate hikes.
The GBP/AUD Exchange Rate Appreciates on Single Market Access Prospects for UK City Firms – Exchange Rates
Despite Wednesday’s impressive Chinese manufacturing data, demand for the GBP/AUD exchange rate continued to gain momentum throughout the day amid anticipation for Thursday’s Bank of England (BoE) meeting and next week’s informal UK-US trade talks.
LatAm Currencies Pare Back Gains on Strong US Jobs Data – Reuters
Latin American currencies pared back gains after strong US jobs data fuelled expectations that the US Federal Reserve would strike a hawkish tone later in the day.