Top Headlines

The Prosecution That Never Was – Profit & Loss

In this Profit & Loss exclusive, Rohan Ramchandani, who was recently acquitted of FX market manipulation by a jury in New York, breaks his silence on the case and gives his perspective on why he believes the prosecution’s arguments were fundamentally flawed.

British Banks Are Getting a Last-Minute Break From the EU – Bloomberg
Countries including Germany, the Netherlands, France, Italy and Sweden are readying national legislation that would help bankers continue to service the 18 trillion pounds of derivatives contracts that could be disrupted if the UK leaves the EU without an agreement in place. 

CFTC Appoints FX Veteran to Market Oversight Division – Profit & Loss

The US Commodity Futures trading Commission has named former Goldman Sachs and Deutsche Bank FX prime brokerage head Mel Gunewardena as deputy director of its Market Intelligence Branch and CFTC’s chief market intelligence officer.

Time for a Reality Check: How Close Is the Blockchain Revolution in Capital Markets? – Tabb Forum

The pace of DLT adoption in the capital markets remains much slower than has been seen in other areas. Given the scope, complexity and systemic importance of the clearing and settlement landscape, is it realistic to expect a blockchain revolution anytime soon?

• Once Hailed as Unhackable, Blockchains are Now Getting Hacked – MIT Technology Review

Regulatory News

Brexit and Cybersecurity Top Esma’s Supervision Agenda – Funds Europe

The European Securities and Markets Authority (Esma) has said that it will focus on the regulation of credit ratings agencies, trade repositories and the monitoring of third-country market infrastructure in the year ahead.

Do We Need a Global Technology Regulator for Financial Services? – Financial Times

While certainly not a global crisis, technology is currently positioned to cause tremendous change in financial services at a global level. Distributed ledger technologies, artificial intelligence, machine learning and other innovations have the potential to change business models and value chains across the financial industry.

Buy-Siders Eye Ways to Get Ahead of US Resolution Stay Rules – Risk.net (subscription)

Come July 1, asset managers will be unable to dump derivatives as a G-Sib is unwound. Lawyers are standing by.

Crypto News

Prime Factor Launches Cryptocurrency Fund – Profit & Loss

Prime Factor Capital, a cryptoasset investment firm headquartered in London, has launched a cryptocurrency fund.

JPM Coin Competes with the Federal Reserve as Much as with Ripple – Euromoney

JP Morgan says that its new dollar stablecoins are collateralized against client dollar deposits but it also emphasizes its own strong balance sheet as surety.

The Derivatives Market is Heating Up in Crypto, and Binance Might be the Next Firm to jump in – The Block

Cryptocurrency trading is stuck in the doldrums but one corner of the market is heating up, according to numerous market specialists – derivatives.

‘Our Cash Went to Something’: Customers Hunt for Bankrupt Crypto Exchange’s Missing Millions – The Wall Street Journal (subscription)

Unusual cash-pickup system mysteriously closes.

Intermediaries Have Big Role to Play in Crypto: ErisX – Global Investor (subscription)

Intermediaries will be important for the crypto sector but they are concerned about managing risk, according to the head of ErisX.

Company News

HSBC Made $120 Million in One Day During Turkish Currency Rout – Bloomberg

HSBC earned about $120 million in a single day during Turkey’s financial crisis as it profited from the collapse of the lira, according to a regulatory disclosure made by the bank.

• HSBC’s Profit Misses Analysts’ Expectations – The Wall Street Journal (subscription)
• HSBC Bankers, Prepare for Lower Bonuses – Bloomberg
• HSBC Swells its Ranks of Multi-Millionaires – Financial News (subscription)

NAM to Offer CLS Access for Japanese Funds – Profit & Loss

CLS has announced that Nomura Asset Management has become the first asset manager headquartered in Japan to provide access to CLSSettlement for Japanese-domiciled funds.

FX Link Adds Two More Currency Pairs – FX Week (subscription)

CME has added another two currency pairs to FX Link, a central limit order book (Clob) that enables clients to trade over-the-counter spot and FX futures through a single-spread trade on the CME Globex platform.

How I’d Persuade People to Work for Deutsche Bank Now – eFinancialCareers

Kevin Rodgers, Deutsche Bank’s former global head of FX, offers some advice to his ex-employer.

Nasdaq Accelerates Move to “Platform World” after Cinnober Acquisition – Global Investor (subscription)

Nasdaq’s Magnus Haglind discusses trends in cloud adoption, blockchain and standardisation.

SmartStream Partners with Numerix to Meet ISDA Collateral Management Obligations – SmartStream

SmartStream has a referral agreement in place with Numerix to better support its end users in complying with ISDA’s margin requirements for non-centrally cleared derivatives.

Market Savvy

Sterling Rally Dwindles as Brexit Reality Bites – Reuters

The pound retreated from a one-week high on Wednesday as British Prime Minister Theresa May returned to Brussels to try to salvage her Brexit deal.

Dollar Struggles Before Fed Minutes; Yuan Hits 3-Week High – Reuters

China’s yuan rose on Wednesday after the United States pressed Beijing to prevent a sharp weakening of its currency as part of any trade deal, while the dollar paused as traders positioned ahead of the release of Federal Reserve policy minutes.

Treasury Levels Seen as `Danger’ by Templeton’s Desai – Bloomberg

This year’s rally in Treasuries is an opportunity to sell or get short before the Federal Reserve signals more tightening in the second half of the year, according to Franklin Templeton.