Top Headlines

US Regulator Urges Registration of Cryptocurrency Exchanges – Reuters

The US Securities and Exchange Commission said that many online trading platforms for cryptocurrencies should be registered with the regulator and subject to additional rules, in a further sign regulators are cracking down on the digital currency sector.

US Dollar Edges Higher as Investors Await Tariff Details – Wall Street Journal (subscription)

The US dollar edged higher as investors remained uncertain about what effect President Donald Trump’s tariff proposals would have on the direction of the currency.

Dollar Decline Rekindles Reserve Currency Worries – Reuters

The US dollar’s nosedive over the last year – only exacerbated by the recent threat of trade wars – is rekindling concerns that the greenback’s standing as the premier global reserve currency is at risk, but data compiled by Reuters suggests such fears are overblown.

Euro Hovers as Market Focuses on ECB Meeting – Reuters

The euro hovered near $1.24 as the dollar recovered after the White House said some countries could be exempted from planned US import tariffs, while traders awaited the outcome of a European Central Bank meeting later in the day.

Sterling Dips as Fears of Brexit Transition Delay Nag, BoE Eyed – Reuters

Sterling edged lower as concern increased that disagreement over the European Union’s draft guidelines for a trade pact with Britain would prevent a transition deal being reached at a summit later this month.

Hong Kong’s Central Bank Looks Likely to Tighten Liquidity – Bloomberg

Hong Kong’s central bank will probably take steps to tighten liquidity in the financial system, a survey of analysts showed, as the city’s currency approaches the weak end of its peg against the greenback.

The Yuan Is Rising, but Chinese Investors’ Interest Isn’t – Wall Street Journal (subscription)

The yuan has gained 3% against the dollar this year, picking up where it left off in 2017 – but trading volume is down 23%

Emerging Markets Inflation Expectations Rise Despite Downward Trend – Financial Times (subscription)

The dollar has been weakening against a basket of leading currencies since the beginning of last year, while EM currencies, on average, have been appreciating.

Banks Line Up Behind British Government in EU Trade Battle – Reuters

Banks and insurers lined up to back the British government’s demand that a future trade deal with the European Union must include financial services, putting them on a collision course with Brussels.

Goldman Sachs Starts to Transfer Some Senior Bankers to Frankfurt Due to Brexit – Reuters

Goldman Sachs is starting to move some senior bankers to Frankfurt in preparation for Britain’s exit from the European Union, the investment bank’s co-chief for Germany said.

Japan to Punish Several Cryptocurrency Exchanges: Sources – Reuters

Japan’s financial regulator will slap administrative punishment notices on several cryptocurrency exchanges this week and plans to force some to suspend their business, people with direct knowledge of the matter said.

Market-Making Giant Citadel Securities Shuns Cryptocurrencies – Financial News

One of the world’s leading market-making firms has decided that trading in bitcoin and other cryptocurrencies is too risky, underlining the assets’ struggle for acceptance in mainstream finance.

Acrimony on the Road to Harmony – Wall Street Journal (subscription)

Securities and commodities regulators have long said harmonizing postcrisis swap rules was a priority.

Demand for New Dark Mechanisms – Profit & Loss (subscription)

Although there are one or two instances, the history of electronic FX tells us that it is very difficult taking volume away from an incumbent.

Regulatory News

Investors Face New Definition of the ‘Trump Trade’ – Financial Times (subscription)

Gary Cohn’s resignation as White House economic adviser stoke trade war fears.

Lawmakers Expand Scope of Senate Bank-Deregulation Bill – Wall Street Journal (subscription)

Senators expanded a bipartisan bill aimed at rolling back postcrisis rules, adding a provision aimed at limiting regulators’ ability to restrict commercial-real-estate lending and clarifying US regulators can tightly oversee foreign banks with significant US operations.

Global Regulators Set Out Proposals to Stop ‘Flash Crashes’ – Reuters

The International Organisation of Securities Commissions (IOSCO) set out draft recommendations for public consultation to stop big market moves becoming disorderly.

Basel Liquidity Rules Block Fed’s QE Exit – Risk (subscription)

LCR and NSFR could produce $1 trillion shortfall in plans for balance-sheet ‘normalisation’.

GOP Lawmakers Open to More Funding for CFTC – Wall Street Journal (subscription)

Regulator’s budget has been flat for four years; chairman says filling key jobs could become a problem.

Company News 

JP Morgan Names Mallas as Global Head of FXPB – Profit & Loss

Leah Mallas has been promoted to global head of FX prime brokerage at JP Morgan.

FX Trader Bucks Lean Times to Lock in $100 Million Investment – Bloomberg

Aston Capital Management is bucking the trend in the foreign-exchange market, growing as other parts of the industry struggle.

Kristin Zekis Leaves FX Sales Role at Citi – FX Week (subscription)

Zekis joined the bank as a director of FX sales and trading in 2016.

Fortex Launches LD5 Matching Engine – Profit & Loss

Fortex, a multi-asset trading platform, is launching a local ECN matching engine in the LD5 data centre in London.

Market Savvy

Loonie, Peso Rally on Tariff Exemption Hopes – Financial Times (subscription)

The currencies of Mexico and Canada received a much needed reprieve after the White House suggested the two countries could be exempted from its proposed steel and aluminium tariffs on national security grounds.

Reports of Problems at Crypto Exchange Send Bitcoin Tumbling – Wall Street Journal (subscription)

Prices for bitcoin and other cryptocurrencies fell sharply after reports emerged about a major bitcoin exchange having problems executing orders.

Australia Trade Balance Beats Estimates, Returns to Surplus – Financial Times (subscription)

The Australian dollar was up 0.1 per cent on the day against the US dollar at $0.7828.