Top Headlines

Tomorrow: FXPA Presents ‘Global Code’ Webinar – Tune in May 31st

Join the Foreign Exchange Professionals Association (FXPA) for a webinar tomorrow that looks at “How Does the Global Code Apply to Me?”

Euro Still Suffering After Draghi Comments on QE – Financial Times (subscription)

Mario Draghi’s comment that the eurozone still needs “an extraordinary amount of monetary support” have kept the euro under pressure in Asian trade.

Sterling Inches Higher, Investors Keep Bets on May Victory – Reuters

Sterling rose against the dollar, with investors shrugging off opinion polls showing British Prime Minister Theresa May’s lead over the Labour opposition narrowing less than two weeks before a general election.

UK Hung Parliament Could Support the Pound: JPMorgan – Financial Times (subscription)

A hung parliament in the UK’s upcoming general election could prove good news for the pound if it leads to the prospect of a centre-left coalition that pursues a “softer” Brexit, according to strategists at JPMorgan.

Dollar, Yen Gain as European Political Nerves Weigh – Reuters

A new round of political worries over Greece, Italy and Britain had European currencies on the retreat against the dollar, the resulting bleaker mood on stock markets also pushing the yen broadly higher.

The Code and the Individual – Profit & Loss (subscription)

Although most of the attention is on institutional adherence to the Code of Conduct, there is also a great deal that individual employees need to know.

Rand’s Rally Fleeting After Zuma Survives No Confidence Motion – Financial Times (subscription)

South Africa’s rand was pulling back in early Asia trade from gains of close to two per cent that had followed President Jacob Zuma’s success in fending off a no-confidence motion from his party at the weekend.

Mexico Still Vigilant for More Peso Volatility: FinMin – Reuters

The Mexican peso has seen a “favorable” trend, but is still subject to volatility that requires authorities to be “cautious, careful and responsible,” Finance Minister Jose Antonio Meade said at an event in Mexico City.

Regulatory News

SEC Chairman Plans to Hire Steven Peikin to Run Enforcement Division – Wall Street Journal (subscription)

Securities and Exchange Commission Chairman Jay Clayton will hire a former prosecutor and veteran litigator from his former law firm to run enforcement at the markets regulator, according to people familiar with the matter.

Trump Budget Threatens SEC’s Technology Spending – Financial Times (subscription)

The Trump administration is planning to eliminate a part of the Securities and Exchange Commission budget that the regulator has been using to build tools for identifying insider traders and pursuing enforcement actions.

Wall Street May Get a New Chance to Gut Obama’s Broker-Conflict Rule – Bloomberg

The finance industry may get a fresh opportunity to chip away at an Obama-era rule that cracked down on Wall Street conflicts of interest, as the Securities and Exchange Commission is considering reviewing the responsibilities that brokers have to their clients.

Banks Concerned Over Being Able to Meet EU Data Protection Deadline – Financial Times (subscription)

Ageing and complex IT systems could scupper demand for overhaul within a year.

These Rules Could Stop the Next Big Financial Crisis. Don’t Get Rid of Them – The Washington Post

Progress in financial regulation is often two steps forward and one step back.

Company News

Funds to Cut Fixed Income Research as EU Rules Shake Up Sector – Reuters

New rules on pricing investment research are shaking up the European fixed income, currency and commodity (FICC) industry, with many funds planning to scale back or ditch a service that banks use to drum up business.

MiFID II: Europe’s Silent Attack on Automated FX Trading and the Unfair Bank Platform Advantage Over Liquidity Takers

The forthcoming MiFID II regulatory framework that is set to span the entirety of the European Union’s member states has generated a wave of regulatory technology requirements within electronic trading companies from London to Limassol.

Brexit: French Officials in ‘Serious’ Talks with Banks About Leaving London – The Independent

Earlier this month JPMorgan said that it would move hundreds of London jobs to Dublin, Frankfurt and Luxembourg

Market Savvy

LatAm Stocks, Currencies Seesaw on Thin Trading Volumes – Reuters

Latin American stocks and currencies seesawed on thin trading volumes, with several major foreign markets closed due to local holidays.

Asian Currencies Softer but Yen Bucks Trend to Push Past ¥111 Mark – Financial Times (subscription)

Asian currencies were broadly weaker but the yen rallied following a round of positive economic data.

Lucky Country Is Getting Left Behind with Aussie Markets Lagging – Bloomberg

Australia’s dollar is the worst-performing major developed currency in the past three months and the country’s equity market is among the world’s weakest this year.