Top Headlines
Sterling Steady on Eve of Article 50 Trigger – Reuters
Sterling traded within a tight range, outperforming other major peers against the dollar, apparently disregarding Britain’s looming formal launch of negotiations on leaving the European Union.
Pimco Shuns Pound as BlueBay Sees `Messy Divorce’ Ahead for UK – Bloomberg
Money managers are staying away from the pound as UK Prime Minister Theresa May is set to start the country’s exit from the European Union this week.
Fed Speakers Halt Dollar Slide with Talk of Rate Rises – Reuters
The dollar steadied after its worst week since US President Donald Trump’s election in November, promises of more rises in Federal Reserve interest rates this year helping it recover from multi-month lows in still shaky global markets.
The Biggest Risk from the Dollar’s Drop May Not Be What You Would Guess – Bloomberg
Practitioners of the carry trade are learning there’s no hiding from the dollar’s influence.
Trump Trade: State of Play in Charts – Financial Times (subscription)
How the president’s political woes have led to bets on faster growth being pared back.
Rand Drops Again After Reports Gordhan Will Be Sacked – Financial Times (subscription)
The South African currency followed yesterday’s sell-off with another drop of more than two per cent in less than 20 minutes, after reports that the president is planning to fire finance minister Pravin Gordhan.
Euro Bears Exit as Net Shorts Hit Three-Year Low – Financial Times (subscription)
The latest US currency futures data show that bets on a weaker common currency more than halved in the week to March 21 from a net short position of 41,000 contracts to 19,700 contracts.
Worst Loss in Decades Has Japan Shunning US Debt at Wrong Time – Bloomberg
The last time it was this cheap for Japanese investors to buy Treasuries and hedge away currency risk was two years ago, when they were piling in and pushing holdings to a record high.
Venezuela to Launch New Exchange Rate Next Week: Maduro – Reuters
Venezuela next week will launch a new currency exchange mechanism to replace the DICOM rate, also known as SIMADI, President Nicolas Maduro said in a televised speech as the OPEC nation suffers a deep economic crisis.
TCA Expands in FX – Markets Media
More than one quarter of buy side traders in the US and UK are using tools for transaction cost analysis in foreign exchange, which is now a major input to execution strategies according to consultancy Greenwich Associates.
FXCM: The Other Side of the Story – Profit & Loss (subscription)
Some sources close to the firm, as well as former employees of the firm, have been keen to try and argue that the punishment levied against it was out of proportion to the crime alleged.
- Last Men Standing – Profit & Loss (subscription)
- Questions, Questions, Questions – Profit & Loss (subscription)
Regulatory News
FCA Starts Naming Names as Traders Mull Dropping Identity Suits – Bloomberg
The agency is planning to run shorter investigations and reach conclusions on individuals and their employers concurrently, allowing it for the first time to identify traders by name in company-penalty notices, enforcement head Mark Steward said in a telephone interview with Bloomberg.
ECB Seeks to Close Brexit Loopholes for Bank Branches, Dealers – Bloomberg
The European Central Bank needs to have the power to oversee branches of foreign lenders and broker-dealers in the euro area to avoid supervisory gaps after Brexit, according to Daniele Nouy, the bloc’s head of bank supervision.
Already the administration has begun replacing some of the industry’s toughest regulators with business-friendly officials.
Michael Piwowar says opacity of prudential regulation is to blame, reiterating call for ‘market-based’ regulation.
‘Project Scalpel’: Behind Big Banks’ Plan to Save $2 Billion – Wall Street Journal (subscription)
Wall Street firms discuss joint venture to process transactions.
Identity Crisis: Venues Still Struggle with MiFID Designations – Risk (subscription)
Lack of clarity on multilateral and matched principal definitions leaves market participants guessing.
Burton-Taylor’s latest research shows industry data spend higher than anticipated, driven by spend on data to comply with new regulations.
IRS Crackdown on Bitcoin Exchange Fuels Privacy Worries – Wall Street Journal (subscription)
The federal government is ramping up pressure on a leading digital-currency company to turn over a vast amount of its customer records as part of a tax-evasion probe, an effort that is raising privacy alarms.
Company News
Michael Spencer Moves NEX and Man Cave from the City – Evening Standard
Billionaire Michael Spencer is moving his new broking business — complete with personal “man cave” — from Broadgate to a new home on the fringes of the City, the Standard understands.
Bloomberg Terminal Base Shrinks in 2016 – Finextra
While Bloomberg continued to command the lion’s share of financial market spending on data, analysis and news in 2016, the firm saw its terminal user base shrink for only the second time in its 36-year history.
Societe Generale Boosts Derivatives Execution with Algo Adoption – The Trade
With the move towards greater adoption of electronic execution, Societe Generale is boosting its technology to trade derivatives faster.
Lubin Trades CBOE for Buy Side – Profit & Loss
Jim Lubin, senior managing director at CBOE Futures Exchange, left the exchange at the end of March.
Seegers to Leave ADS Securities – Profit & Loss
Bryan Seegers, director and co-head of global e-FX coverage at ADS Securities will be leaving the firm on April 6, 2017 and returning to the US with his family.
Stater Global Markets Announces Technology Partnerships, New Products – Profit & Loss
Stater Global Markets, a prime-of-prime brokerage launched in October 2016, has announced its core technology partners as well as the introduction of CFDs in indices and commodities.
Investment Association Pursues Reporting Framework – The Trade
The Investment Association has launched a consultation on a new standardised transaction costs reporting framework to benefit the buy-side.
Market Savvy
C$ Little Changed vs Weaker Greenback; Poloz Awaited – Reuters
The Canadian dollar was little changed against its US counterpart as lower oil prices offset broad-based losses for the greenback, while investors braced for a speech by Bank of Canada Governor Stephen Poloz.
Neither consumers nor investors are worried by political tensions in Poland, judging from developments, with ratings agency Moody’s lifting its economic growth forecasts while the zloty hit a seven-month high.
Crown Near Three-Month High in Forwards, Forint Steady Before Rate Meeting – Reuters
The Czech crown was at a three-month-high in future deals as markets readied for an expected removal of an exchange rate floor.