Top Headlines

SocGen to Shrink Trading Unit, Cut Costs after Market Rout – Bloomberg

The Paris-based bank is replacing its global markets head and will review less profitable fixed income and currencies activities after a 29 percent decline in fourth quarter revenue.

Concannon ‘Graduates’ To Fixed Income – Markets Media

Chris Concannon, the new president and chief operating officer at MarketAxess, said fixed income is just at the start of evolutionary change as investors are looking to increase their use of algorithms and other electronic products.

Federal Judge Tells Traders They Can Combine Cases Accusing JP Morgan of Rigging Metals Market – CNBC

A group of traders from across the US who allege that JP Morgan Chase manipulated precious metals markets for years are one step closer to bringing a class action suit against the nation’s largest bank.

Currency Traders Dragged Down January CTA Performance – Profit & Loss

Following an initial positive run in the first few days of the year, all CTAs in the Societe Generale Indices were in negative territory by the end of January.

North American Corporates Lose $11bn on FX Volatility – FX Week (subscription)

Almost six times as many companies reported currency headwinds in third quarter, FireApps analysis shows.

Regulatory News

Germany’s Scholz Says Finance Must Prepare for No Deal Brexit – Bloomberg

The financial industry needs to prepare for the ripple effects of the UK leaving the European Union without a deal that spells out its future relationship with the bloc, said German Finance Minister Olaf Scholz.

Libor Reform – What Will Work? – Tabb Forum

Consternation over the question of replacing Libor continues. There is no guarantee that any choice of Libor replacement currently advanced by bank regulators will ‘work,’ and so far, things have not gone well for the replacement candidates.

ISDA Launches Digital Platform to Automate IM Documentation – Regulation Asia

‘ISDA Create – IM’ is expected to significantly reduce the time and resources it takes to negotiate margin documentation for participants in non-cleared OTC derivatives markets. 

Margin or Membership? Regulators React to Nasdaq Default – (subscription)

Global clearing houses are regulated by a college of supervisors drawn from across the countries where the central counterparty’s clients are based. So when a CCP is forced to draw down heavily from its members’ default fund after losses suffered by a single private trader, supervisors are likely to have something to say about it.

Crypto News

Quadriga Clients Won’t Get Help from Regulator on Lost Crypto Millions – Bloomberg

The latest twist in the crypto drama that stranded $145 million in assets on Quadriga CX brought more bad news for the investors: British Columbia’s securities regulator says it doesn’t have jurisdiction over the exchange.

Crypto Futures Platform ErisX Hires Execs from Barclays and YouTube – CoinDesk

ErisX, a digital assets trading platform, has recruited three top-level officers from major companies in the financial and tech industries.

Company News

Citi and HSBC Automate FX Prime Brokerage Novation with Capitolis – The Trade

Capitolis launched its novation platform last year in partnership with major firms including Citi, HSBC, Brevan Howard and BlueCrest.

Deutsche Bank Moves Fixed Income Trading Business Back to Brazil – Bloomberg

After cutting costs in the Latin American nation 40 percent last year, Deutsche Bank is moving its fixed income and currencies trading businesses to Sao Paulo from New York City, Maite Leite, the Frankfurt-based company’s chief country officer for Brazil, said.

NAB Chief Executive and Chairman Resign after Critical Report – Financial Times

The chief executive and chairman of National Australia Bank resigned on Thursday following stinging criticism of the bank and their leadership in a report on misconduct in the finance sector. 

FlexTrade Moves EMS to the Cloud with AWS – The Trade

FlexTrade has deployed FlexNOW to the cloud with AWS, making it the industry’s first cloud-based execution management system. 

Market Savvy

Sterling Set for Worst Week Since October as Brexit Fog Descends – Reuters

Sterling on Friday was headed for its worst weekly decline since October with a stalemate over Brexit weighing on the currency and leading the Bank of England to cut its growth forecast.

Mystery Buyer Props Up Euro as Bond Yields Fall – Reuters

The euro held at a two-week low on Friday as traders nursed losses in a week of bad data that indicated an economic slowdown in Europe was spreading as trade tensions between United States and China remain high.

Markets Trim Bets of UK Rate Rise in 2019 after Central Bank Vote – Reuters

Market expectations of a Bank of England interest rate hike before the end of 2019 fell to 41 percent compared to 50 percent before Thursday’s rate decision.