Top Headlines

Three Theories on the FX Flash Crash: Robots, Apple, Yen Shorts – Bloomberg

Traders and strategists are still attempting to identify the triggers for Thursday’s flash crash in the $5.1 trillion-a-day foreign exchange market.

A Top-Rated Haven Just Began Interventions to Buoy Its Currency – Bloomberg

For the first time in almost three years, the central bank of Denmark has bought kroner to support its euro peg through a direct intervention in the currency market.

‘As Good As It Gets’ For Exchanges – MarketsMedia

CME Group reported record volumes as analysts at German bank Berenberg said increased volatility has led to robust volume growth across most products for exchanges around the globe.

Regulatory News

Brexit Threat to European Sovereign Bond Sales – Financial Times

European governments risk a Brexit blow to their finances if the UK crashes out of the EU without a deal, an outcome that would jeopardise their access to the London-based banks that help sell their bonds.

Ireland in Push to Handle Business Moves to Dublin as Brexit Nears – Financial Times

Ireland is likely to issue an increasing number of authorisations for financial groups seeking to move operations to Dublin from London ahead of Britain’s March 29 departure from the EU, as worries grow about a no-deal Brexit.

Mifid II Reporting Issues Linger One Year On – Global Investor (subscription)

On the one year anniversary of Mifid II challenges with transaction reporting remain.

UK Treasury Adds Two Women to BOE’s Financial Policy Committee – Bloomberg

Colette Bowe and Jayne-Anne Gadhia are set to join the Bank of England’s Financial Policy Committee. The central bank has been criticized for a lack of gender diversity, particularly in its most senior ranks and in policy making positions.

If the Stock Market Has a Problem, His Job Is to Fix It – Bloomberg

Brett Redfearn of the SEC has a full plate: IPOs, high-frequency trading, exchange fees and the price of data.

Crypto News

Looking for Liquidity – Profit & Loss

As cryptoassets continue to endure a tough bear market, Profit & Loss hosted an event called OnTheBlock to discuss what impact this has had on liquidity conditions.

PwC Crypto Lead Expects “Many More” Big Banks to Enter Market in 2019 – The Trade

PwC Hong Kong crypto lead expects more participants in the cryptocurrency space this year despite the ongoing bear market and widespread regulatory concerns.

Tesla Stock on a Blockchain Offers Hint of Where Crypto’s Headed – Bloomberg

DX.Exchange, a digital exchange opening next week, will enable investors to trade in companies including Apple, Facebook and Tesla outside of the US even when the stock markets are closed.

Winklevosses’ Cryptocurrency Exchange Says the ‘Revolution Needs Rules’ – The Wall Street Journal (subscription)

Gemini Trust Co., the cryptocurrency exchange founded in 2014 by Cameron and Tyler Winklevoss, argues in a new ad campaign that its chaotic sector should protect investors by adopting standard best practices and following regulations.

Happy 10th Birthday, Bitcoin. It’s Amazing You Still Exist – The Guardian

False prophets, a rogues’ gallery of blaggers, and fiendish technical complexity: the cryptocurrency has defied them all.

Company News

Cobalt: Bringing Greater Efficiency to the Back Office – FX Week (subscription)

Market participants will look to bring back-office operations in line with modern electronic trading practices.

FireApps: Digitalisation of Financial Markets Will Accelerate – FX Week (subscription)

Banks are no longer just talking about digitalising their business; they have allocated hundreds of millions to it, says Wolfgang Koester.

Deutsche Börse’s Straight-Talking Boss – Handelsblatt

CEO Theodor Weimer has improved Deutsche Börse’s relations with politicians and investors, but can he make the acquisitions that will take the company into the big league?

FX Market Vulnerabilities Persist Despite Good Progress: ParFX – Global Investor (subscription)

FX trading platform ParFX sees an opportunity to onboard non-banks as they adopt the FX Global Code.

Market Savvy

Sterling Edges Up Ahead of UK Services Data – Reuters

Sterling rose on Friday after suffering heavy losses spurred by fears of a global economic slowdown, but uncertainty about Brexit kept its gains in check.

Yen Slips on US-China Trade Hopes, Still Headed for Best Week in 11 Months – Reuters

The yen edged lower on Friday after its recent surge, amid hopes upcoming US-China trade talks would make some progress, but remained well bid by investors fretting about a global economic slowdown.

Gold Bursts above $1,300 as Slowdown Tremors Spur New Year Rally – Bloomberg

Gold pierced the $1,300 level to extend a New Year rally. Investors flocked to the metal with global equities in retreat, signs of a slowdown stacking up, and the oldest of havens showing its mettle as exchange-traded funds draw in increased flows.