Top Headlines

Trading Firms Cry “Last Look” in the Futures Market – Profit & Loss

As a futures exchange proposes a new speed bump mechanism, a number of market participants are coming out in opposition to it. Some of the arguments they’re making will sound familiar to those in the FX markets.

From $1,600 to $1 Million: Research Costs Under Mifid II – Bloomberg

How much does investment research cost? Anything from $1,600 to $1 million per client on average.

Europe’s Investment Banks Braced for More Pain – Financial Times

European banks are set to report a third consecutive quarter of grim investment banking revenues, which analysts predict will drop as much as a quarter, intensifying calls for another round of job cuts and retrenchment.

The EU’s Post-Brexit Finance Ambitions Miss an Important Point – Financial Times

Although the British political system appears to have staved off a no-deal Brexit for now, London still faces an existential threat. Unless the UK suddenly changes its mind about leaving the EU, banks, insurers and other financial services businesses still face the prospect of a hard Brexit in all the likely scenarios.

Regulatory News

Brexit: More Regulatory Power Over Non-EU Clearing Houses – EU Today

The EPP Group in the European Parliament wants to have an adequate regime for the recognition of third-country clearing houses by the Brexit date, but does not want to require British-based clearing houses to relocate after Brexit. 

Splintered Libor Transition Raises Risks for Banks – Financial Times

Global regulators reminded the world last week that they would like to see the Libor lending benchmark all but gone by 2022, and they will be watching banks’ progress carefully. Figuring out how to replace the London interbank offered rate, however, is fast becoming one of the prickliest issues in global markets.

Mifid II Review Could See Regulatory Backtrack – Bobsguide

Europe’s second Markets in Financial Instruments Directive combined with the number of firms struggling to submit accurate data could result in a climbdown from regulators in the next few years, say lawyers.

Life’s a Breach: Banks Settle Uncomfortably into GDPR – (subscription)

A year into exacting data privacy regulation, ramifications are becoming more tangible.

Crypto News

CFTC Chair Giancarlo Hints at What’s Holding Back Bakkt’s Bitcoin Futures – CoinDesk

CFTC Chairman J. Christopher Giancarlo spoke in very general terms about the regulatory issues facing new crypto products, offering insight on how the agency is approaching futures, as just one example. And if you read between the lines, his comments offer some clues about the snags Bakkt has hit.

Need Diversification? Consider Adding Cryptocurrency, the Least Correlated Asset Class – The Block (subscription)

There is no meaningful correlation between bitcoin and other cryptocurrencies and other asset classes, including equities, commodities, property and fixed income. Because of the lack of correlation, exposure to cryptocurrency could be beneficial to the diversification of traditional portfolios.

Monthly Report: Crypto to Crypto Trading Volumes Surged By 70% in March; Malta Dominates – The Block

Cryptocurrency market data provider CryptoCompare recently released its March 2019 Exchange Review, surveying trading data across major crypto exchanges. The report highlights an increase of 47.5% in total crypto exchange spot volume and a spike of 70% in crypto to crypto exchange trading volume, illustrating the recent resurgence in the once subdued crypto markets.

Ethereum Group Launches Token Standards Drive – WatersTechnology (subscription)

The Ethereum Enterprise Alliance is announcing an initiative to standardize definitions around tokenization, as a means to make it fit for purpose for institutional investors and encourage wider adoption.

Company News

News ‘Flash’: MT Newswires Gives ICE Clients Early Look at Stories – WatersTechnology

By distributing stories prior to performing its full editing process, MT Newswires can give ICE clients several crucial minutes of exclusive advantage, compared to mechanical latency improvements that might deliver mere fractions of a second.

Morgan Stanley Center of Excellence Readies Bank for AI’s Data Demands – The Wall Street Journal (subscription)

About 30 experts specializing in data architecture, infrastructure and governance are acting as data advisers to different business and technology divisions within the bank, partly to ensure AI and other applications are being built with the right data.

Barclays to Cut Bonuses for Investment Bankers – Financial Times

Barclays is cracking down on its investment bankers’ pay as the UK bank steps up its defence against activist investor Edward Bramson ahead of next week’s annual meeting.

AI Platform Reveals Impact Of Brexit On Financial Services Talent – The Global Recruiter

Artificial Intelligence platform, Talent Ticker, has revealed the impact Brexit is having on those working in the financial services industry. 

Moscow Exchange Expands FX Offering – Moscow Exchange

Moscow Exchange has introduced new instruments and services on its FX market. These include: matching at the weighted average USD/RUB FX rate correlating to the Bank of Russia’s official rate; a pilot USD/RUB order book; and new instruments for the JPY/RUB currency pair. New currency pairs, USD/CNY and USD/TRY, will be added to the global OTC liquidity access project. 

Market Savvy

Sterling Stuck Below $1.30 as British Parliament Returns – Reuters

Sterling was stuck under $1.30 on Tuesday as Britain’s parliament returned from its Easter break and the ruling Conservative party tried to move talks forward with the opposition Labour party over a Brexit agreement.

Dollar Gains as FX Volatility Drops – Reuters

The dollar held near three-week highs on Tuesday as a drop in market volatility ramped up demand for riskier assets.

These Six Markets Are the Biggest Winners and Losers from Oil’s Rally – Bloomberg

The Russian ruble and Colombian peso have benefited the most from recent oil rallies The Indian rupee is the most negatively correlated emerging market currency to crude over the past five years.