Top Headlines

US Threat of More Tariffs on China Hits Yuan, Aussie – Reuters

The Chinese yuan skidded toward an 11-month low and the Australian dollar fell after the Trump administration threatened 10 percent tariffs on $200 billion worth of Chinese imports in an escalating trade conflict.

China Welcomes Central, Eastern European Countries to Include Yuan in Reserves – Reuters

China said it welcomes countries in central and eastern Europe to include the yuan currency in their foreign exchange reserves.

Sterling Edges Down as Traders Eye BoE Speech – Reuters

The pound edged down from $1.33 as investors tried to gauge if the resignation of two ministers over Prime Minister Theresa May’s Brexit plans would affect an expected interest rate hike this summer.

LatAm Currencies Lead EM Relief Rally – Financial Times (subscription)

Latin American currencies were in demand, with Argentina, Mexico and Brazil leading a rally in emerging market assets as bargain hunters moved in following the recent sell-off.

Departure of TP Icap Chief Exposes Tensions at Top – Financial Times (subscription)

Interdealer broker struggles with integration issues arising from £1.3bn Icap purchase.

Regulatory News

ECB Is Said to Spar with Governors on Far-Reaching Conduct Plan – Bloomberg

The European Central Bank has a battle on its hands over new conduct rules for Governing Council members, some of which are seen as too intrusive.

Brexit Threatens Some Swaptions Trades – Risk (subscription)

Force majeure clauses could be triggered on physically settled contracts.

Crypto News

B2C2 and oneZero Announce Partnership – Profit & Loss

B2C2, a cryptocurrency market maker, and oneZero Financial Systems, a software and infrastructure provider for institutional and retail brokers, have announced a partnership that will enable oneZero’s clients to gain access to B2C2 as part of the oneZero ecosystem.

Bitcoin Futures Volumes on the Rise at Cboe, CME – The Trade

Futures volumes rise as institutional investors take to new products – as one fund says – ‘carefully and slowly’.

Market Synergy Offers Connectivity to Bitfinex – Profit & Loss

Swiss-based Market Synergy, a new business formed as part of the FXecosystem group, says it is now offering connectivity to cryptocurrency exchange Bitfinex.

As Bitcoin Declines, Coinbase’s App Is Dropping in Popularity – Quartz

The bear market for bitcoin and other virtual tokens has dragged down Coinbase, a digital-asset exchange and darling of the crypto-startup world.

These Are the Top Venture Capital Firms Investing in Blockchain – FX Empire

Over 120 venture capital firms have now made two or more investments in blockchain companies.

Company News

LCH Goes Live with Deliverable FX Options Clearing – Profit & Loss

LCH has launched deliverable FX options clearing. The move incorporates the first physical settlement service for cleared FX products, which LCH has developed in collaboration with CLS.

SGX Launches “Futurised” OTC FX Product – Profit & Loss

Singapore Exchange (SGX), is launching a new product, SGX FlexC FX Futures, with the aim of “futurising” certain OTC FX product offerings.

Initial Margin: Preparing for the Buy‑Side ‘Big Bang’ – Risk (subscription)

David White, head of sales at triResolve – part of the NEX Group – discusses the challenges of initial margin (IM) compliance for buy-side firms and how automation can help in the drive for more efficient collateral management processes.

Market Savvy

Traders Reload Loonie Shorts Ahead of Bank of Canada Decision – Bloomberg

Currency markets face the prospect of a Canadian dollar short squeeze in the aftermath of Wednesday’s Bank of Canada meeting.

Turkey’s Politics Tests the Patience of Diehard Investors – Financial Times (subscription)

New cabinet unlikely to challenge Erdogan’s unconventional economic principles the Turkish lira is back on the downward path, losing more than three per cent since the cabinet announcement.

Argentina’s Armchair Economists Fixate on the Peso – Financial Times (subscription)

Historic economic volatility has turned Argentines into veteran currency speculators.