Top Headlines

Yen Hits 17-Month High and Dollar Dips on US Trade Tariffs – Financial Times (subscription)

The yen strengthened to a near 17-month high and bonds gained in the wake of the Trump administration’s plans to impose tariffs on up to $60bn in annual imports from China in a bid to trim its trade deficit with the country.

Chinese Ambassador Warns of ‘Trade War’ Over Trump Tariffs – Bloomberg

China’s ambassador to the US warned Donald Trump the Asian nation would return fire on tariffs the US president announced, saying the American middle class would pay the price.

Sterling Set for Biggest Weekly Rise in Six Weeks; Risks Lurk – Reuters

Sterling consolidated gains after posting its biggest weekly rise in six weeks, as investors pondered the outlook for the currency amid threats of a global trade war.

Euro Weakens to Two-Month Low Against Sterling – Financial Times (subscription)

The euro-sterling cross, which has become a proxy for Brexit uncertainty, has been pretty much range-bound for the past 12 months, but the euro fell below 0.87, a two-month low.

Be Sceptical About Great Monetary Policy Convergence – Financial Times (subscription)

Euro and yen appreciation likely to be resisted as ECB and BoJ favour lower rates.

HSBC, RBS Parents Beat Forex Suit, Others Still On Hook – Law360 (subscription)

A New York federal judge cleared HSBC Holdings and The Royal Bank of Scotland Group from a proposed class action accusing several big banks of a conspiracy to rig benchmark foreign exchange rates, finding that the court lacks personal jurisdiction over the two.

Antitrust Attorneys Prepare to Depose UK Traders – FX Week (subscription)

Attorneys in the US foreign exchange benchmark-fixing antitrust case are moving to depose UK traders connected to banks that have already settled, as legal teams continue to build a case against Credit Suisse, the only remaining dealer fighting the accusations.

EU Risks Backlash on CCP Supervision: UK MEP – Risk (subscription)

Swinburne says US could retaliate over fears of “damaging blanket Brexit policy”.

Spencer Says He Would Be Willing to Stay with Nex in CME Deal – Financial Times (subscription)

Michael Spencer has told staff at Nex Group he would be willing to stay on in a senior role even if his financial technology company is bought by CME Group.

Banks Win Break on Capital Requirement Hitting Trading Desks – Bloomberg

The proposed revisions will come as a relief to traders in swaps, bonds and other securities.

Crypto-Focused Hedge Funds on SEC’s Radar – Wall Street Journal (subscription)

The Securities and Exchange Commission is preparing to examine as many as 100 hedge funds focused on cryptocurrencies, according to a person familiar with the matter.

Top Regulator Worries That Crypto Markets Could Be Full of Manipulation – Bloomberg

Warding off market cheaters in digital currencies is among the Securities and Exchange Commission’s major concerns as it monitors those assets, according to Brett Redfearn, head of the regulator’s Division of Trading and Markets.

Money Markets Are Messed Up, With Real Consequences – Wall Street Journal (subscription)

Banks are paying more to borrow money now than during the 2012 euro crisis, a sign of trouble ahead.

Regulatory News

US Plans to Cut Funding for Bitcoin Futures Watchdog – Bloomberg

CFTC’s Giancarlo takes spending bill ‘incredibly personally’.

Fed’s Rate Signals Belie Benign Financial Conditions – Financial Times (subscription)

Still loose financial conditions suggest central bank will tolerate more market volatility.

Japan to Warn Hong Kong-Based Cryptocurrency Exchange Binance: Source – Reuters

Japan’s financial watchdog plans to issue a warning against Hong Kong-based cryptocurrency exchange Binance for operating in Japan without being registered, a person with the direct knowledge of the matter said.

Robot Regulators. What Could Possibly Go Wrong? – Bloomberg

Lots, as it happens. But politicians still love the idea.

Company News

Keith Bailey Leaves Barclays – Risk (subscription)

Keith Bailey, a managing director in Barclays’ fixed-income, currencies and commodities division and a former chair of the International Swaps and Derivatives Association, left the bank at the end of January, understands.

Trading Venues Get Help from IOSCO – Markets Media

IOSCO has made it a priority to advise the markets on how technology is changing how markets operate and how both regulators and markets should respond to these changes.

Oanda Integrates Chasing Returns – Profit & Loss

Oanda has announced the integration of Chasing Returns’ risk management technology into its trading platform, meaning its retail clients will now have access to the Trading Performance Management portal, powered by Chasing Returns.

Cryptocurrency Backed by Habanero Peppers Is a Thing in Mexico – Bloomberg

This isn’t the first vegetable-related blockchain enterprise.

Market Savvy

Turkish Lira Takes Heavy Hit in Global Flight from Risky Assets – Financial Times (subscription)

Turkey’s currency took a beating overnight, before recovering to some extent in London trade, amid a global dash away from assets perceived to be risky. 

Bitcoin Falls on Fears of Regulatory Trouble for Big Crypto Exchange – Bloomberg

A regulatory rebuke for one of the world’s largest cryptocurrency exchanges is giving bitcoin investors the jitters.