Top Headlines

Sterling Gains as Britain, EU Seal Brexit Transition Deal – Reuters

Sterling surged as Britain and the European Union agreed to a 21-month post-Brexit transition period and a potential solution to avoid a “hard border” for Northern Ireland.

Euro Rises on Report of ECB Rate-Hike Debate; Sterling Jumps – Reuters

The euro rose after a Reuters report that European Central Bank officials were shifting their debate from bond purchases to the expected path of interest rates, reviving bets that the ECB may raise rates sooner than previously thought.

Dollar Bounces After Monday’s Drop; Fed in Focus – Reuters

The dollar edged higher, reversing some of its losses the previous day as investors positioned themselves ahead of Wednesday’s policy meeting at the US Federal Reserve, which is widely expected to raise interest rates.

G20 Leaders to Hold Fire on Cryptocurrencies Amid Discord: Sources – Reuters

The world’s financial leaders gathering in Argentina are likely to stop short of any specific action aimed at regulating cryptocurrencies such as Bitcoin, amid discord over the approach, sources at the summit told Reuters.

US Bans Transactions with Venezuela’s Digital Currency – Reuters

President Donald Trump signed an executive order barring any US-based financial transactions involving Venezuela’s new petro cryptocurrency, as US officials warned that it was a “scam” by President Nicolas Maduro’s government to further undermine democracy in the OPEC country.

Deutsche Börse Plans FX Expansion Through Launch of New Clearing House – The Trade

Deutsche Börse has announced plans to establish a foreign exchange clearing house ahead of a possible expansion of the European Market Infrastructure Regulation (EMIR) requirements to include other asset classes such as foreign exchange (FX).

FIA Refutes Commission’s Post-Brexit Clearing View – FOW (subscription)

Closing positions with UK CCPs could lead to operational risk, according to an expert.

Tullett Prebon and the Mystery Clob – Risk (subscription)

How tpSef quietly kept voice broking alive in a regime designed for e-trading.

One of the Most Secretive Trading Firms on Wall Street Has Been Trading Bitcoin – Business Insider

Jane Street, a secretive Wall Street firm which traded more than $5 trillion in 2017, has started trading bitcoin.

Regulatory News

New BoE Stress Test Puts Focus on Banks Critical to UK – Risk (subscription)

The Bank of England will hold the UK’s seven largest banks to a higher standard when it conducts this year’s annual stress test.

Confused? You Should Be, And the Fed Too – Wall Street Journal (subscription)

The economy might be less strong than central bankers think, or it might be strong but create less inflation.

FCA Plans Global Testing Ground for Fintech Startups – Financial News

UK regulator will meet with counterparts in the US, Europe and Asia to lay out plans for cross-border testing of financial technology innovations

BNY Mellon’s MiFID II Advisor Appointed Regulatory Affairs Head at WFE – The Trade

Richard Metcalfe joins WFE as head of regulatory affairs, replacing Gavin Hill who will join the compliance team at the London Metal Exchange.

Company News

LCH to Start Clearing Vanilla FX Options – FOW (subscription)

The clearing house has also set it would leverage new benchmark products.

Thomson Reuters Goes Granular on AUD – Profit & Loss

Thomson Reuters has announced it is introducing more granular pricing for AUD/USD across its spot FX trading platforms.

Goldman Hires Another Senior FX Salesman from Deutsche Bank – Financial News

Shahid Akram, who was most recently Deutsche’s global head of business development for FX sales, will start at Goldman in London in May.

HKEX Working with ASX on Blockchain – Financial Times (subscription)

Hong Kong’s stock exchange is working with its Australian counterpart to share information on blockchain, as global exchanges accelerate plans for the technology in an attempt to compete and cut costs.

Market Savvy

Why Hong Kong Will Be Watching Jay Powell’s Fed Debut – Financial Times (subscription)

A faster pace of US rate rises will have ramifications for Hong Kong and its currency. 

Bitcoin’s Rise and Fall Looks Just Like Dot-Com’s Boom and Bust… Kind of – Wall Street Journal (subscription)

Should their similar trajectories continue, bitcoin could have even more downside ahead.

India’s Dollar Buyer May Step Back as Capital Inflows Plunge – Bloomberg

The rupee is the second-worst performing currency in Asia and global funds have turned net sellers of its bonds this year.