Top Headlines

US and UK Markets Regulators to Cooperate in a No-Deal Brexit – Financial Times

UK and US markets regulators have finalised two agreements to co-operate oversight of markets and the fund management industry if Britain leaves the EU without an agreement this month.

Dealers Go Quiet on Turkey Research – (subscription)

Many large dealers have not published any public foreign exchange research on the Turkish lira since the cost of borrowing the currency soared to more than 1,000% earlier this week. The blackout comes in the wake of the move by Turkey’s Banking and Regulation Supervisory Agency to investigate JP Morgan for recommending bets against the lira last week in the build-up to local elections in the country on March 31.

BIS Launches 2019 Triennial Survey – Profit & Loss

The Bank for International Settlements has formally launched the 12th Triennial Central Bank Survey of Foreign Exchange and Over-The- Derivatives Markets – the survey that is universally used as the benchmark measure of the size of the daily FX market.

Are Banks Wrong to be Judging Their FX Traders in P&L Terms? (opinion) – Profit & Loss

It concerns me that by making the trader’s job so difficult, and by measuring their performance in a manner that was fitting a decade ago but clearly is not now, we risk incubating another period of inexorable creep towards those levels of desperation once again as dealers strive to achieve impossible targets.

In the FICC of It (podcast) – Profit & Loss

Following on from Profit & Loss’ recent Forex Network New York event, the podcasters pick out a few key themes from each panel session for discussion.

Too Volatile, or Too Calm, Markets Still Aren’t Just Right for Wall Street Banks – The Wall Street Journal (subscription)

Markets have been calm so far in 2019. That’s bad news for Wall Street trading desks.

Regulatory News

New Benchmark Rate, Gunning to Replace Libor, Gains Traction – The Wall Street Journal (subscription)

Trading in forward contracts using the benchmark rate expected to replace Libor surged to a record this month. The secured overnight financing rate, or SOFR, is now the leading alternative used by the contracts, as opposed to the discredited London interbank offered rate, known as Libor.

FCA Officially Bans Retail-Orientated Binary Options – Profit & Loss

Following consultation feedback, the UK’s Financial Conduct Authority (FCA) has confirmed all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail consumers.

Esma Urges Firms to Prepare for Emir Refit – Global Investor (subscription)

Esma has urged firms to prepare data to determine their clearing obligations when the Emir Refit lands in May.

Banks Forge Cloud Agreements to Split Accountability – WatersTechnology (subscription)

Banks are trying to split responsibility for their operating environments with the major cloud providers. Regulators are having none of it.

Crypto News

Coinbase’s New Customer Incentive: Interest Payments, with a Crypto Twist – The Wall Street Journal (subscription)

Coinbase, a platform where users can buy and sell bitcoin and other cryptocurrencies, is launching a program for institutional investors that will pay them a set interest rate, likely between 5% and 8%, when they park money in its custody service.

Raising Money in the Crypto World Has Gotten a Lot Harder – The Wall Street Journal (subscription)

The ICO market is dead. Just about, anyway. Startups raising money via initial coin offerings brought in just $118 million in the first quarter, according to data from research site TokenData. In the same period in 2018, companies raised $6.9 billion.

SEC Postpones Decision on Bitwise, VanEck Bitcoin ETF Proposals – CoinDesk

The US Securities and Exchange Commission has delayed making a decision on two bitcoin exchange-traded fund proposals earlier this year.

Bakkt Introduces New Board Members as its Bitcoin Futures Launch Hangs in the Balance – The Block

Chairing the board is Tom Noonan, a cyber expert and founder of numerous cybersecurity companies. Also joining the board are Jeff Sprecher, the founder, chairman and CEO of ICE and chairman of the NYSE; Akshay Naheta, managing partner at Softbank; and Sean Collins, managing partner at Goldfinch Partners.

CME Aligns Bitcoin with Traditional Settlement – Global Investor (subscription)

CME removes additional safeguard after 14 successful bitcoin futures settlements.

Company News

Second Barclays Trader Convicted of Euribor Manipulation – Profit & Loss

Just days after former colleagues Carlo Palombo was convicted of similar charges, a UK jury has found a second former Barclays interest rate trader guilty of Euribor manipulation.

Deutsche Bank Taps Nasdaq to Power New US Single Dealer Platform – The Trade

Deutsche Bank has announced a new partnership with Nasdaq whereby the exchange operator will deliver the technology and operational services to power Deutsche Bank’s new US Single Dealer platform.

Euronext Plans NDFs, FX Derivs in 12 months – Global Investor (subscription)

Euronext plans to launch NDFs and FX derivatives on Fastmatch in the next 12 months.

Listed FX Market Will Never Replace OTC: CME – Global Investor (subscription)

CME Group hopes to add more currencies to its FX Link later in the year.

Market Savvy

Sterling Rises as May Faces Pressure to Go for Soft Brexit – Reuters

The British pound rose on Monday as investors prepared for parliament to vote on a series of Brexit options, with some hoping that the current uncertainty will end in a softer Brexit than Prime Minister Theresa May’s defeated withdrawal agreement.

Aussie Dollar Buoyed By China Data – Reuters

The euro held above a three-week low on Monday as improved Chinese factory activity lifted sentiment, with the Australian dollar leading gains by nearly half a percent.

Asian Currencies Firmer as China’s Factory Activity Rebounds – Reuters

Most Asian currencies gained on Monday as a surprise improvement in China’s factory activity boosted confidence in regional assets, reversing more pressing concerns about the impact of a broader economic slowdown.