Top Headlines

What if Turkey Squeezed the London Lira Market to Death? – Reuters

Turkey’s authorities have shown over the past month they are capable of squeezing the life out of the $35 billion-a-day London lira market – but the cost of killing it off completely would be high for the country itself.

How London Banks Are Trying to Dodge Brexit – Financial Times

Regulators want more activity shifted to mainland Europe but lenders have other ideas.

The State of Transaction Cost Analysis in 2019 – Greenwich Associates

By now, one might think we have reached a saturation point and that products are trending toward commodity offerings. That is not the case, however. In fact, Greenwich Associates projects that TCA will become even more important and ingrained in the trading process going forward.

The Best and Worst Banks to Work for in Spring 2019, By JP Morgan – eFinancialCareers

If banks can’t cut costs to match falling revenues, profits will suffer. Partly on this basis JP Morgan banking analysts rank their preferred banks in 2019 as: Goldman Sachs, UBS, Morgan Stanley, Barclays, Credit Suisse, BNP Paribas, SocGen and Deutsche Bank – with Deutsche Bank last of all.   

ISDA Survey Highlights Close Out Netting as Crucial Factor in Derivatives Growth – Profit & Loss

Trading volumes in Asia’s derivatives markets are expected to increase, but achieving certainty on close-out netting is identified as an important factor in driving further development of local markets, according to a new survey of derivatives market participants active in Asia Pacific published by ISDA.

Derivs Volumes Exceed 30 Billion in 2018: WFE Report – FOW (subscription)

The World Federation of Exchanges report shows significant growth in all derivatives categories except ‘other’.

Regulatory News

Brussels to Seek UK Vow Not to Disrupt EU in Return for Brexit Delay – Financial Times

European leaders will demand the UK abide by principles of “sincere co-operation” and not disrupt the functioning of EU institutions in return for a long extension of its Brexit negotiations, according to draft council conclusions.

CFTC Official Warns on Sef Rule Overhaul – (subscription)

The incoming chairman of the Commodity Futures Trading Commission (CFTC) is likely to continue with attempts to reform rules governing swap execution, according to commissioner Rostin Behnam – however he warns against a full-scale overhaul of the framework.

Japanese Firms Delay IM Plans Due to Netting Uncertainty – (subscription)

Japanese financial firms need a change in the nation’s netting law before they can finalise plans for posting initial margin on cross-border derivatives trades.

Hong Kong Goes Slow on Swaps Trading Mandate – (subscription)

Fears over disrupting global trade lie at the heart of Hong Kong’s cautious approach towards introducing a swaps trading mandate, according to a senior official from the Securities and Futures Commission.

Brokers ‘Clinging On’ Amid Weak Research Spending – Financial News

It is more than a year since sweeping changes were waved in under Europe’s landmark Markets in Financial Instruments Directive II, and the bond between asset managers’ clients and the hundreds of analysts whose job it is to churn out research for them has held firm.

Crypto News

‘Emotional Enthusiasm’ of Crypto Bulls Triggers a Warning Sign – Bloomberg

The signs portending renewed pain ahead in the crypto world are piling up, with a technical indicator showing the Bloomberg Galaxy Crypto Index at its most overbought since hitting a record last year.

TradeStation Selects Deltix’s Platform for Crypto Service – Profit & Loss

TradeStation Crypto will use the institutional cryptocurrency trading platform CryptoCortex, provided by Deltix, to launch its online brokerage service later this year.

The Unbelievable Brilliance of Binance – CoinDesk

Binance is emerging as the case study for growing a cryptocurrency business, a success that’s much needed in a community that spends too much time talking up the potential of its technology and too little time analyzing viable go-to-market strategies that can drive a technological sea change.

Company News

CEO Chat: Andy Coyne, Cobalt – MarketsMedia

Andy Coyne, chief executive officer and co-founder of Cobalt, discusses high-frequency trading in FX, how technology is evolving and how starting one’s own firm compares to working at a bulge bracket brokerage.

Calder Joins FenicsFX – Profit & Loss

Barry Calder has joined FenicsFX as a managing director, working in the New York office. Calder, one of the co-founders of HotspotFX (now part of Cboe), spent 17 years at the platform, most recently serving as head of liquidity at Cboe FX Markets.

Swaps Data: Cleared Volumes and CCP Market Share – (subscription)

Data shows CME and Eurex are growing faster than LCH Swapclear.

SocGen’s Redundancies Somewhat Less Emotional Than Nomura’s, Say Insiders – eFinancialCareers

It’s happened again. In the space of less than a week, another third-tier bank has announced a program of mass redundancies. SocGen’s new strategy may, however, be a little less aggressively implemented (at least to begin with) than Nomura’s last Thursday. 

StanChart, BofA and ANZ Are Hiring India’s Senior Traders from Rivals – Bloomberg

Standard Chartered, Bank of America Merrill Lynch and Australia & New Zealand Banking Group are among banks hiring senior currency and rates traders away from rivals in India after volatility in markets surged.

Linear Investments Loses Appeal Against £400k FCA Fine for Market Abuse – The Trade

Linear Investments insisted that no instances of market abuse went undetected or unreported, but FCA says oversight of surveillance systems was insufficient.

Torstone Technology Acquires Risk and Compliance Tech Firm Percentile – The Trade

Torstone Technology will add Percentile’s risk and compliance platform to its post-trade services following the acquisition.   

Market Savvy

Sterling Stuck as EU Set to Grant Britain a Second Brexit Delay – Reuters

Sterling edged up on Wednesday but remained within its recent trading range as investors prepared for the European Union to grant Britain a second Brexit delay that, while reducing the threat of a no-deal exit, creates new uncertainties.

Price Pressures Sends Norway’s Crown Racing to Five-Month High vs. Euro – Reuters

The Norwegian crown rallied to its highest level against the euro in five months on Wednesday after stronger-than-expected inflation data raised expectations of another rate hike from the central bank in the coming months.

Emerging Market Currencies Are Flashing a Warning – Bloomberg

The year has been great so far for risk assets from stocks to credit, and emerging-market assets have joined in the party. Except, recently, for their currencies. Among the observations in a widening debate on the missing gains: some fund managers highlight their greater sensitivity to the risks of a global slowdown.