Top Headlines

Two Fed Officials Point to Possibility of April Rate Hike – Bloomberg

Two Federal Reserve officials said interest-rate increases may be warranted as soon as the central bank’s meeting next month, citing solid readings on the U.S. economy despite headwinds from abroad.

IMF Pressing China to Disclose More Data on Currency Operations – Wall Street Journal (subscription)

The International Monetary Fund is pressing China to disclose more information about its currency operations based on standards the Chinese central bank had pledged to follow, people familiar with the matter said, as Chinese authorities resort to more-discreet ways to support the yuan.

Currency Market Buzzes Over Tacit G20 Deal – Financial Times (subscription)

Did last month’s G20 meeting in Shanghai come up with a secret currency accord between the world’s big central banks? That is the chatter in the FX market after a series of policy meetings not short on surprises.

China Markets: Beijing’s Support for Margin Trading Is Reborn – Wall Street Journal (subscription)

China moved quietly to encourage investors to buy stocks using borrowed money in an effort to push a nascent stock market recovery into a stronger rally, following last summer’s debt-fueled market meltdown.

Rupee Rebound From Two-Year Low Fits Rajan’s Currency Truce Call – Bloomberg

Reserve Bank of India Governor Raghuram Rajan called for an overhaul of the global monetary policy system and again urged against competitive currency devaluations.

Central Banks Creep Toward Uncomfortable Role: Central Planners – Wall Street Journal (subscription)

European Central Bank and Bank of Japan are starting to break one of the tenets of the profession by funneling cash directly to what they regard as ‘good’ uses.

Russia Cenbank Softens Stance on Rule Aimed at Cutting Forex Exposure – Reuters

The Russian central bank on Monday softened its stance on a new rule to help de-dollarise the banking system, postponing a requirement to set aside more capital against foreign currency loans and possibly exempting loans to exporters.

Moody’s Sees Gulf State Currency Pegs Withstanding Oil Rout – Bloomberg

Oil-rich countries in the Gulf Cooperation Council are unlikely to abandon their decades-old currency pegs to the U.S. dollar even as a slump in oil prices puts a $250 billion squeeze on the region’s finances, according to Moody’s Investors Service.

Regulatory News

Algo Rules Could Catch Commodities Trades – Financial Times (subscription)

Olam is nobody’s idea of a high-frequency trading firm. The Singapore-based agricultural commodities merchant grows almonds, processes cocoa and deals bales of cotton.

Company News

IHS Buys U.K. Financial Data Firm Markit for $5.5 Billion – Bloomberg

IHS Inc., which provides data analysis for energy and automotive companies, agreed to acquire London-based Markit Ltd. to bulk up in financial services.

Hoodless Launches Counterattack on Citi – Profit & Loss

Ex-Citi FX trader Robert Hoodless presented his witness statement to the East London Employment Tribunal on Friday, alleging patchy in-house training and inconsistent internal confidentiality standards at the bank.


Blockchain Vendor Elliptic Raises $5 Million Series A – WatersTechnology

Elliptic, a provider of blockchain monitoring technology, has nabbed $5 million in Series A funding.

Market Savvy

Goldman Sticks with Strong Dollar Call on Outlook for Rate Moves – Bloomberg

Goldman Sachs Group Inc., one of the world’s top 10 foreign-exchange traders, is holding fast to its bullish-dollar stance, unmoved by the currency’s recent slide.

Moody’s Sees “Clear Downside Risks” if UK Leaves EU – Reuters

Ratings agency Moody’s said on Tuesday it saw “clear downside risks” if Britain votes to leave the European Union in a referendum in June, and repeated its warning that this would make the country’s debt more vulnerable to a downgrade.

Dollar Rises as Market Moves Past Dovish Fed Rate Views – Reuters

The dollar edged up on Monday, bouncing back from a more than 1 percent loss against major currencies last week as investors shook off dovish statements from the Federal Reserve.

BlackRock Says There Won’t Be a U.S. Recession, Cut Treasuries – Bloomberg

BlackRock Inc., the world’s largest money manager, says investors should pare their Treasury holdings because the U.S. will avoid a recession.

Press Releases

Optimal Currency Area: A 20th Century Idea For the 21st Century? – The National Bureau of Economic Research

This paper takes stock of the history of the European Monetary Union (EMU) and pegged exchange-rate regimes in recent decades, pointing out the need to reshape the optimal currency area (OCA) criteria into the twenty-first century.

Edgewater Markets Raises $30 Million Growth Equity Investment to Enhance Technology Platform, Expand Global Footprint – MarketWired

Edgewater Markets, an industry leader in electronic foreign exchange aggregation and distribution to global institutional clients, today announced the company has raised a $30 million growth equity minority investment led by FTV Capital. This first institutional capital raise will be used to enhance the company’s technology platform, grow the sales team and expand its global reach.

SGX Welcomes JihSun Futures as Derivatives Trading Member

Singapore Exchange (SGX) today welcomed Taiwan-based JihSun Futures Co., Ltd to its derivatives market as a Trading Member.

ESMA Writes to European Commission on Draft MiFID II RTS

The European Securities and Markets Authority (ESMA) has written to the European Commission regarding its draft RTS on MiFID II.

Industry Events

FOW: Derivatives World, 12-13 April in Hong Kong

FX Week FX Invest North America, 12 April in Boston, MA

Profit & Loss Forex Network London, 14 April in London, UK

Profit & Loss Latin America, 20 April in Mexico City

ACI World Congress 2016 – Indonesia, 26-30 April, Jakarta

Eurofinance:  Asia Treasury, 18-20 May in Singapore

Profit & Loss Forex Network New York, 26 May, New York City

FIA: IDX 2016, 7-8 June in London, England

Profit & Loss Scandinavia, TBD September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL