Top Headlines

Rationalising Buy Side Adoption of the FX Global Code – Profit & Loss

The changing nature of foreign exchange markets, not least the day-to-day participation of the buy side, offers a good rationale for why buy side firms should sign a Statement of Commitment to the FX Global Code.

Theresa May Plans ‘New and Improved’ Brexit Deal – Financial Times (subscription)

Theresa May has promised to set out a “new and improved” Brexit deal next month as she tries to stitch together a cross-party coalition of MPs to pass her EU withdrawal treaty at the fourth attempt.

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

In this week’s edition, the podcasters attempt to answer the question, why are some banks fined more than others for what appears to be the same conduct? They also discuss some of his observations from a big week in the crypto world, including an overheard conversation that not only highlights how people are making money on Bitcoin, but what they are spending it on.

Regulatory News

Banks Rethink Fund-Linked Trades Ahead of FRTB – (subscription)

With spikes in capital requirements on the way, European banks are fretting over how to avoid ending up with mispriced trades in structured products linked to funds.

FX Reaction to Trade War Muted By Regulation – FOW (subscription)

INTL FCStone says that the muted FX markets reaction to the trade war reflects the impact of regulation

SFTR Preparations Stifled by Data Availability – WatersTechnology (subscription)

The need to obtain necessary data points and automate workflows is causing considerable challenges for the industry ahead of the phase-in of the Securities Financing Transactions Regulation (SFTR), which is set to begin in the second quarter of 2020.  

Crypto News

Lack of Banking Options a Big Problem for Crypto Businesses – The Wall Street Journal (subscription)

Bitfinex’s loss of access to $850 million in customer funds after using a Panama-based processing firm highlights a persistent issue for crypto companies

Coinbase in Advanced Talks to Acquire Xapo: Sources – The Block

Regulated US-based cryptocurrency exchange Coinbase is in advanced talks to buy custody provider Xapo for about $50 million to boost its custody business. Xapo’s CEO Wences Cesares is a serial entrepreneur from Argentina known to be one of the biggest champions of bitcoin from its earliest days.

Bitfinex Will List Its New Exchange Token Starting Monday – CoinDesk

Crypto exchange Bitfinex will list its new exchange token, LEO, on Monday after purportedly raising $1 billion from the initial offering.

Binance is Building Out a Derivatives Platform – The Block

Binance is looking to gatecrash the crypto derivatives market, a move that can put it up against exchange giant BitMEX.  

Company News

Deutsche Bank Loses Head of FX Trading Business in Europe – Financial News (subscription)

Amedeo Ferri-Ricchi, a key revenue generator and head of Deutsche Bank’s foreign exchange business in Europe, the Middle East and Africa, which has been spared from deep investment bank cuts over the last 12 months, resigned last week.

Citi Revamps Algos to Improve Sweep Impact Predictions – FX Week (subscription)

Citi is revamping some of its more aggressive algorithm strategies, using predictive analytics to upgrade their intelligence so that liquidity is better managed and the quality of orders filled in the $5 trillion-a-day currency markets is increased.

CTA Funds See Gains in April – Profit & Loss

The Barclay CTA Index reflects a positive month for funds, gaining 0.85% in April 2019. Strong performance in recent months has allowed the Barclay CTA Index to gain 2.28% year-to-date.

OpenFin Raises $17 Million in Funding – Profit & Loss

OpenFin has raised $17 million in its Series C funding round, which was led by Wells Fargo.

Marsden Becomes Head of e-FX Quant Trading at NatWest Markets – FX Week (subscription)

James Marsden has been promoted to head of e-FX quant trading at NatWest Markets in Singapore.

Market Savvy

A $19 Billion Test Is Coming Straight for China’s Battered Yuan – Bloomberg (subscription)

The spat with the US has put the yuan under pressure because it is likely to hurt China’s economic growth and narrow its trade surplus.

Sterling Rises Off Five-Month Lows after Biggest Weekly Drop This Year – Reuters

Sterling inched above five-month lows on Monday as British Prime Minister Theresa May makes a last-ditch attempt to get a Brexit deal through parliament before she leaves office, though scepticism from the opposition Labour Party capped gains.

Aussie Set for Biggest Rise in 2019 after Shock Election Win – Reuters

The Australian dollar surged on Monday and is on track for its biggest rise this year as investors cheered a shock election win by Prime Minister Scott Morrison’s conservative coalition, though mixed global stocks broadly weighed on risk appetite.