Top Headlines

SocGen Cuts 1,600 Jobs as Investment Bank Overhauled – Financial Times

The investment bank will close its commodities business and proprietary trading unit and reorganise its fixed-income division to make it more profitable, particularly the underperforming rates, credit, currencies and prime services operations, as was first flagged in February.

Nomura Chief Risk Officer, Senior Traders Exit – Bloomberg

The departures, part of Nomura’s plan announced last week to cut costs in its global trading and investment banking operations by $1 billion in coming years, are focused on the Japanese firm’s secondary business in fixed income, currencies and emerging markets.

EC’s Updated AI Plan Still Attracts Criticism – Profit & Loss

The European Commission has published an update outlining the next steps for its efforts to build trust in AI and machine learning by creating what it terms “a European approach to artificial intelligence”. The plans have attracted criticism from the Center for Data Innovation, a non-profit research institute.

Blame Currency Trading’s ‘Soul Destroying’ Start to 2019 on Reserve Managers – Bloomberg

Central banks’ shifting currency reservess may be to blame for what JP Morgan is calling one of the most frustrating quarters ever for currency traders.

Regulatory News

Clearing Takes Centre Stage as Brexit Threatens Derivatives Fragmentation – Global Custodian (subscription)

London stands to lose a significant amount of clearing business from European derivativestraders as a result of Brexit. How will this fragmentation affect Europe’s clearing landscape?

Banks Brace for ‘World’s Largest Corporate Action’ as Libor Switch Looms – WatersTechnology (subscription)

The transition away from Libor is a mammoth task for the banking sector—one that the industry is increasingly finding itself woefully unprepared for.

Philippines Joins Regional Payment Settlement Network – FX Week (subscription)

The Central Bank of the Philippines has signed bilateral agreements with three other South-east Asian central banks, which will see it join a local currency settlement system.

Buy-Side Under-Resourced for Regulatory Compliance: Report – Global Investor (subscription)

A JWG report claims the buy-side is under-resourced to meet new regulatory demands.

UK Financial Conduct Authority and Australian Securities and Investments Commission Agree to Strengthen Cooperation Post-Brexit – FCA

The UK Financial Conduct Authority and the Australian Securities and Investments Commission have agreed two Memoranda of Understanding to ensure there is continuity once the UK leaves the European Union. The MoUs cover trade repositories and alternative investment funds.

Crypto News

Institutional Investors Rely on a Select Group of Data Providers – The Trade Crypto

Over the years there has been a flood of startup firms providing market data all claiming to estimate the daily trading volume of cryptocurrency activity, but institutional investors are relying on a select group for information.

Leading Advocate for Mt Gox Creditors Quits, Saying Bitcoin Payouts Could Take Years – CoinDesk

The head of the largest organized creditor group representing the former users of failed bitcoin exchange Mt Gox is stepping down amid what he described as a protracted legal quagmire that could take years to resolve completely.

Bitcoin’s ‘Super Guppy’ Price Indicator Flips Bullish in First Since Early 2018 – CoinDesk

Several bitcoin price indicators are turning positive on the charts, hinting at growing bullish momentum as the bitcoin block reward halving in 2020 edges closer.

Company News

Eurex Introduces Speed Bump on FX Suite – Global Investor (subscription)

Deutsche Boerse-owned exchange is introducing passive liquidity protection on FX products.

Rupan Joins LMAX Exchange – Profit & Loss

LMAX Exchange Group has appointed Randy Rupan as head of liquidity analysis. Based in New York, Rupan will report into Jeremy Barnes, global head of liquidity management.

Northern Trust Appoints FX Sales Head in the Americas – The Trade

Ernesto Arteta, formerly a senior trader at Northern Trust, has been promoted to lead FX sales in the Americas.

DTCC Teams Up with Droit for Trade Reporting – The Trade

As part of the deal, market participants will be able to use Droit’s reporting eligibility platform within DTCC’s Pre-Reporting Transformation Services for various G20 reporting regimes, including the impending Securities Financing Transactions Regulation.

LME Introduces First Code of Conduct in its 142-Year History – Financial News (subscription)

The move comes just six months after one of the London Metal Exchange’s clients hosted a cocktail party at the Playboy club in Mayfair.

Analysts Predict 2,500 Investment Bank Job Cuts from Deutsche-Commerz Merger – Financial News (subscription)

Deutsche Bank could cut up to 15% of its investment bank staff to achieve the cost savings needed to make a merger with local rival Commerzbank worthwhile.

Market Savvy

Sterling Briefly Rallies on Hopes for Irish Backstop Breakthrough – Reuters

Sterling briefly jumped to the day’s high on Tuesday after a BBC report said a British eurosceptic lawmaker had been advised that German Chancellor Angela Merkel was willing to put a five-year time limit on the Northern Ireland backstop issue.

Commodity Currencies Propelled by Crude Oil Price Rally – Reuters

The Australian and Canadian dollars rose on Tuesday, aided by a surge in oil prices to five-month highs that lifted most commodity-linked currencies.

JP Morgan Sees `Violent’ Markets on Volatility-Liquidity Loop – Bloomberg

The negative correlation between volatility and liquidity has been getting stronger over time, according to the JP Morgan’s global head of macro quantitative and derivatives research. As volatility rises, market depth declines exponentially, exacerbating price moves, he said.

What Did the Federal Reserve See That Investors Did Not? – Financial Times

The key questions for investors in the week ahead.