Top Headlines

Wall Street Banks Have Basel’s Ear in Pushback on Market Risk – Bloomberg

Wall Street is used to getting the opportunity to influence bank rules before they are unveiled. Now financial firms are getting the chance to argue that a key capital requirement should be softened even after it was supposed to be finished.

Looking for Volatility? Try the Currency Market – Wall Street Journal (subscription)

Investors recently have been looking for signs of volatility amid a sharp drop in stock swings. Perhaps they should turn their attention to the foreign exchange market.

Facing Up to the Challenges of Post-Trade Inefficiency – Profit & Loss

Although speakers on a recent Profit & Loss webinar agreed that there is a need for greater automation and efficiency within FX market post-trade infrastructure, there were divergent views on both the speed and the manner in which this should be accomplished.

The Pitfalls Of Currency Manipulation – A History Of Interventionist Failure – Seeking Alpha

Readers may recall that the last G20 pow-wow (see “The Gasbag Gabfest” for details) featured an uncharacteristic lack of grandiose announcements – a fact we welcomed with great relief. The previously announced “900 plans” which were supposedly going to create “economic growth” by government decree seemed to have disappeared into the memory hole. These busybodies deciding to do nothing is obviously the best thing that can possibly happen.

SWIFT Reports 18% Jump in RMB Adoption – Profit & Loss

Figures released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) today reveal that nearly 40% of financial institutions worldwide have adopted RMB when exchanging payments with China and Hong Kong.

Argentine Senate Approves Deal to End Debt Dispute, Re-Enter Markets – Reuters

Argentina’s Senate gave the green light to a landmark deal to repay creditors holding defaulted debt in the early hours of Thursday, marking the end of a 14-year legal battle that had made the country a global financial pariah.

Even Bulls Get Stampeded by Gold’s Best Quarter in Three Decades – Bloomberg

Gold’s been on such a tear, even the bulls got left behind.

HK Overnight Yuan Rates Go Negative as Bears Exit Short Positions, RRR Bites – Reuters

The overnight offered rate for offshore yuan (CNH HIBOR) plunged to -3.725 percent on Thursday, the first time it has quoted in negative territory, with some analysts saying the slide showed investors short on offshore yuan were quitting their positions in a hurry.


China Investment Bank Defaults on ‘Dim Sum’ Bond – Financial Times (subscription)

A unit of Guosen Securities, China’s eighth-largest investment bank, has defaulted on a Hong Kong-traded renminbi bond, according to a document seen by the Financial Times, marking the first debt breach by a state-owned enterprise in China’s offshore market in nearly two decades.

Regulatory News


Itiviti Launches Tool for MAR compliance Covering All Asset Classes – Itiviti
Itiviti, a technology provider for the capital markets industry, today announced Itiviti Analyst MAR, a solution designed to help firms ensure compliance with the new European Market Abuse Regulation (MAR) which will become effective on July 3, 2016.

Company News

Citadel Securities in Push to Bolster Electronic Trading – Financial Times (subscription)

Citadel Securities, the market making arm of the hedge fund, has hired a senior banker to bolster its bid to use electronic trading to break open traditionally dealer-dominated markets.

FlexTrade Adds Three in APAC – Profit & Loss

FlexTrade Systems has made three appointments to its Asia Pacific team. Tim Wong, Maroof Khan, and Dan Enstedt have been named as vice presidents of business development, multi-asset sales, for the region.

Investors Pull Cash From Hedge Funds as Returns Lag Market – Wall Street Journal (subscription)

Marc Levine, chairman of the $16 billion Illinois State Board of Investment, had a provocative question this month during a board meeting about hedge funds. “Why do I need you?” Mr. Levine asked. A lot of big investors are asking the same question.

Market Savvy

Bill Gross: Central Bankers ‘Running Out of Time’ – Wall Street Journal (subscription)

The legendary bond trader argues that negative rates can only persist for so long

APAC Currency Corner: Yellen Edition – MarketPulse

Dr. Yellen’s speech delivered to the New York Club was titled, “The Outlook, Uncertainty and Monetary Policy”, and unlike last week’s ensemble of Hawkish Fed officials, she was decidedly more dovish and arguably more dovish than even at her post-FOMC press conference in March.

Rand Gains Most Among Global Currencies after Yellen’s Comments – Bloomberg

South Africa’s rand gained the most against the dollar among global currencies and headed for its first quarterly gain since 2012 as dovish comments from Federal Reserve Chair Janet Yellen sparked a shift toward riskier assets.

Dollar Rally, We Hardly Knew Ya – Wall Street Journal (subscription)

Barring a sharp turnaround in the next two days, the dollar is on track for its worst month in five years, according to analysts at Saxo Bank.

Press Releases

ESMA Fines DTCC Derivatives Repository Limited €64,000 for Data Access

Decision to adopt a supervisory measure taking the form of a public notice and to impose a fine in accordance with Statement of Findings in accordance with Articles 64(5), 65, 67 and 73 of Regulation (EC) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories.

2016 Blockchain Symposium: Opening Remarks by Michael Bodson, DTCC President and CEO

On March 29, 2016, DTCC President and CEO Michael Bodson spoke at the opening of the 2016 DTCC Blockchain Symposium held in New York City.

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