Top Headlines

US and UK Strike Long-Term Derivatives Deal – Financial Times

UK and US markets regulators have finalised a sweeping long-term agreement to jointly oversee each other’s derivatives markets after Brexit, removing concerns of financial turmoil in the $481tn market if Britain leaves the EU without an agreement.

Fired Barclays Trader Wins Nearly £1m in Compensation – Financial Times

David Fotheringhame, the former head of automated FX flow trading at Barclays, was one of the most high-profile casualties of probes into a trading practice called “last look,” which allows banks a small window of time to decide whether they want to reject or accept client trades.

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

The podcasters discuss the article penned for Profit & Loss by former FX trader Rohan Ramchandani about his trial and subsequent acquittal for market manipulation. While they generally agree on most points there is, inevitably, areas of disagreement, but that is nothing compared to when they move on to how they ranked each other’s predictions for 2018.

The ‘Cartel’ Three: Not Guilty, But Still Paying a Penalty – FX Week (subscription)

They were indicted, tried and acquitted of charges that they conspired to rig foreign exchange benchmark rates, but that victory has come at a cost for the three former currency traders in the ‘Cartel’ case.

Parsimonious Northerners are the Euro’s Biggest Winners: Study – Reuters

Germany and the Netherlands have benefited enormously from the euro over the 20 years since its launch, a study has found, while for almost every other member the single currency has been a serious drag on economic growth.

Regulatory News

Bankers Don’t Flee London, Despite Exodus Predictions – The Wall Street Journal (subscription)

Banks and asset managers have built up bases on the continent in recent years to ensure they can access the bloc after Britain’s departure. But, contrary to the widely held expectation that London would lose tens or even hundreds of thousands of jobs, there are few signs yet of a wholesale shift away from the UK capital.

FCA to Take Over Ban of Binary Options – Financial Times

The EU rules which currently ban the sale, marketing and distribution of binary options to retail consumers will become part of domestic law on the day the UK leaves the European Union, the Financial Conduct Authority has announced.

FRTB is Here – Now it’s up to Local Regulators – (subscription)

The Basel Committee on Banking Supervision has finished with its Fundamental Review of the Trading Book, and local regulators must now give it their own national slants. So banks are watching and waiting. And they say they have reasons to be gun-shy

Bracing for Data Disruption in a No-Deal Brexit Scenario – WatersTechnology (subscription)

In February, UK and EU regulators made announcements expected to shed light on the future of data sharing and alleviate some uncertainty post-Brexit, but industry experts say the latest statements fall short of lifting the real burden on affected firms.

FCA Urges Industry to Take Libor Discontinuation Seriously – Global Investor (subscription)

UK regulator warns that if the transition is chaotic, it could have serious repercussions.

Crypto News

Wells to Leave Digital Asset – Profit & Loss

Gavin Wells is leaving Digital Asset, where he has served as head of Europe, based in London. He is due to leave the firm next month, having joined in mid-2016. 

Torrey Joins Digital Currency Firm Genesis – Profit & Loss

Dan Torrey has joined OTC digital currency trading firm, Genesis Global Trading, in New York as head of institutional sales.

Cryptocurrency Companies Use ‘Backdoor’ Listings to Ease into Mainstream – Reuters

Several cryptocurrency exchanges have moved closer to mainstream markets by buying listed companies, looking to raise funds and present themselves as embedded in the traditional financial services world they once spurned.

Crypto’s Enduring Fascination for the Wealthy – Financial Times

In February last year, Forbes magazine published its first-ever cryptocurrency rich list. But only one person in the top 10 was identified as an “investor”; the rest were either currency co-founders or ran a crypto-exchange.

Company News

Cboe FX: Driven by Data – Profit & Loss

In terms of volumes, Cboe FX indisputably had a great year in 2018. Its average daily volume for the year was $37.4 billion, its highest ever recorded and a 27% increase from 2017.

SocGen Weighs Thousands of Job Cuts at Investment Bank – Bloomberg

Societe Generale is drawing up plans to cut jobs at its investment bank and find a partner for its cash-equity business in a bid to offset increasing cost pressure from regulation.

Ideal Prediction Adds Scope to Product Roster – Profit & Loss

Analytics and data science company Ideal Prediction, has unveiled Scope, an automated monitoring service, which analyses the behaviours of voice traders and trading algorithms in line with the principles of the FX Global Code.

Narasimha Steps Down as Oanda CEO – FX Week (subscription)

Vatsa will remain on the broker’s board of directors.

Nomura Invests in Brevan Howard AI Trading Platform – The Trade

The system covers fixed income, equity, foreign exchange, institutional and mutual funds, providing Nomura Asset Management’s portfolio managers, traders and compliance teams with front office decision support, trading and compliance tools.

LCH Says Bulk of Euro Repo, Debt Now Cleared in Paris Unit – Reuters

Nearly all UK-based clearing of euro-denominated repo and government bond trades moved to Paris this week, the London Stock Exchange’s clearing arm said in a step partly aimed at easing European Union concerns ahead of Brexit.

RBC Follows US Lenders in Fixed Income Trading Declines – Bloomberg

The lender saw a 12 percent drop in trading revenue from fixed income, currencies and commodities in the three months through January, advancing the trend that affected US banks including JP Morgan and Citigroup at the end of 2018.

JP Morgan Trades Banker Offices for Shared Desks – Reuters

JP Morgan is tearing down walls and moving its San Francisco investment bankers onto “hot desks,” a space-saving layout that has long been a fixture at tech companies, while redesigning offices in Dallas and other cities.

Market Savvy

Sterling Rallies on Talk UK Government Considering Brexit Delay – Reuters

Sterling gained on Monday as traders considered whether the British government might delay Brexit if Prime Minister Theresa May fails to secure support in parliament for her withdrawal agreement.

Yuan Tops Seven-Month High, Aussie Gains Tariff Hike Delayed – Reuters

China’s yuan touched a seven-month high and the commodity-linked Australian and New Zealand dollars gained on Monday after US President Donald Trump confirmed he would delay a planned increase in tariffs on Chinese imports.

In Tentative Rollout, Zimbabwe Banks Start Trading New Currency – Reuters

Zimbabwe’s commercial banks started trading the RTGS dollar on Monday, but authorities offered no indication as to how ordinary citizens would interact with the country’s new transitional currency five days after it was introduced.