Top Headlines

Sterling Falls as Traders Eye Brexit Talks – Reuters

Sterling fell against the dollar as nervous investors sold the pound ahead of more talks between Britain and the European Union over the terms of Brexit, and Prime Minister Theresa May’s highly awaited speech on Friday.

Dollar Hits Six-Week High as Powell Bolsters Rate Hike Bets – Reuters

The dollar hit a six-week high, supported by what was perceived as an upbeat tone from new Federal Reserve chief Jerome Powell on the US economy, bolstering bets that interest rates will be hiked four times this year in the United States.

City’s Top Brussels Envoy Nervous Over Brexit Transition Terms – Financial News (subscription)

The City of London’s top envoy to Brussels is worried that Brexit talks could “sour to an even greater degree” if European negotiators seek onerous terms for securing a crucial transition deal.

Bitcoin-Futures Regulator Clears Employees to Trade Crypto Coins – Bloomberg

The US’s main commodities regulator recently told its employees that they are allowed to invest in cryptocurrencies, a determination that came weeks after the agency began overseeing bitcoin futures.

Can Bitcoin Threaten Market Stability? – Institutional Investor

Central banks could take over bitcoin or one of its rivals should cryptocurrencies become a systemic risk to financial markets.

Fed to begin publishing Libor alternative – Financial Times (subscription)

The Federal Reserve Bank of New York announced that it will begin publishing a new reference rate chosen by an industry group to serve as an alternative to the scandal-ridden Libor benchmark.

What to Do About the Missing 20% – Profit & Loss (subscription)

We have the majority of participants signed up to the FX Global Code, let’s focus on those who have not.

And the Pendulum Swings Back – Profit & Loss (subscription)

Institutional investors have long understood the value of diversifying their portfolios, and this usually means investing internationally.

Regulatory News

US Regulators Examine Wall Street’s Volcker Rule Wish List: Sources – Reuters

US regulators are considering changes to the “Volcker rule” Wall Street has sought for years that would make it easier and cheaper for banks to comply and allow them more leeway in trading and investing, according to several regulatory and industry sources.

European Legislators to Exempt CCPs from New Bank Rules – Risk (subscription)

Lawmakers are proposing to overrule the European Commission and exempt derivatives CCPs from incoming capital and liquidity ratios.

What Powell Won’t Say to Congress: The Fed Has Funding Challenges – CNBC

The issue today is that the banks are still funding 50 percent of the Fed’s balance sheet.

Britain’s White-Collar Cops Are Getting Too Good at Their Job – Bloomberg

In the era of Brexit, not everyone wants the Serious Fraud Office to chase rich wrongdoers out of the country.

Company News

New Peaks for Cboe, GTX as Platforms Report February Data – Profit & Loss

The first three platforms have reported average daily turnover (ADV) data for February, with CboeFX (formerly HotspotFX) and Gain’s GTX hitting new peaks and Euronext’s FastmatchFX seeing its second busiest month.

Talks Collapse to Merge US and UK Hedge Fund Lobby Groups – Financial News (subscription)

Merger talks between the main hedge fund lobby groups in the UK and the US have collapsed after more than six months of discussions, depriving the industry of a global trade body sought by many market participants.

Van Wyk-Allan to Head AIMA in Canada – Profit & Loss

The Alternative Investment Management Association (AIMA) has appointed Claire Van Wyk-Allan as its new head of Canada.

Genesis Launches Crypto Lending Service – Profit & Loss

Genesis Trading, which offers two-sided liquidity for digital currencies, has launched a new affiliate, Genesis Global Capital, an institutional digital currency lending business.

Market Savvy

Rush for China Shares and Bonds Bodes Well for Renminbi – Financial Times (subscription)

Internationalisation of the currency gaining speed in 2018 after two-year setback.

Struggling Bitcoin Will Double by Midyear, Wall Street’s Tom Lee Says – CNBC

Bitcoin will likely double from here and the broader cryptocurrency market should recover by the end of March, Fundstrat’s Tom Lee says in a report.