Top Headlines

Yen Stands Tall as Trade War Concerns Grip Markets – Reuters

The Japanese yen jumped half a percent against the dollar and is set to score significant gains against the euro as prospects of a trade war gripped markets after US President Donald Trump announced hefty new tariffs on steel and aluminium imports.

FX Traders Look for Pain Points After Trump Escalates Trade Tension – Bloomberg

US President Donald Trump’s decision to slap tariffs on steel and aluminum imports has traders assessing which currencies have the most to lose.

Sterling Steadies Near Seven-Week Low as Traders Eye Brexit Speech – Reuters

Sterling steadied close to a seven-week low against the dollar, as traders eyed a speech from Prime Minister Theresa May on her plans for a trade deal with the European Union.

The Perverse Loop That Is the Euro’s Key Weakness – Financial Times (subscription)

The risk of a member’s exit from the bloc could be cut by an Article 50 provision.

BoE’s Carney Calls for Crypto Crackdown – Financial Times (subscription)

The governor of the Bank of England, Mark Carney, has pledged that it is time to regulate elements of cryptocurrencies and their ecosystem, as policy makers at the central bank weigh how much of a risk they pose to financial stability.

RBC Capital Markets: All e-FX Trades Subject to Last Look – FX Week (subscription)

RBC Capital Markets has published a notice to clients outlining its practices in fixed-income, currencies and commodities trading (Ficc), which states all electronic FX trades are subject to last look checks with holding periods ranging between 0 and 100 milliseconds.

CFTC’s Concerns About FX Industry Annoy Pros – Euromoney

Comments made by the US regulator at an FX industry event in Miami in February have raised the hackles of some market participants over the thorny issue of ghost or phantom liquidity. 

Bitcoin Enters Awkward Adolescence – Bloomberg

Derivatives provided greater visibility into an opaque markets, but there is no rush to embrace them.

Regulatory News

FCA: TCA ‘Unlikely’ to Fall Under Research – FX Week (subscription)

Third-party transaction cost analysis fees will be difficult to include in the spread if they do not count as research costs.

Crapo’s Dodd-Frank Rewrite Set for Senate Floor Vote Next Week – Bloomberg

Senate Majority Leader Mitch McConnell has set the stage for a vote on one of the biggest rewrites of financial industry rules since the Dodd-Frank Act was passed nearly eight years ago.

Trump’s Tariff War Nudges Cohn Toward White House Exit – Politico

The president’s top economic adviser lost a battle to prevent the imposition of steep tariffs pushed by protectionist advisers.

FCA’s Bailey Urges Market to Examine a ‘Synthetic Libor’ – Financial Times (subscription)

The head of the UK markets regulator has called on market participants to look at creating a “synthetic Libor” to resolve a headache created by a potential global market shift away from the key lending benchmark in coming years.

JSCC to Aid Yen Libor Transition with New OIS Swaps – Risk (subscription)

The Japan Securities Clearing Corporation (JSCC) will launch a new set of Tokyo overnight average rate (Tonar) swaps for clearing this month, to aid the swaps market’s transition away from the yen Libor benchmark.

Company News

CME to Launch SOFR Futures – Profit & Loss

CME Group has announced it will launch monthly and quarterly Secured Overnight Financing Rate (SOFR) futures on May 7, pending regulatory review.

Ex-Barclays FX Sales Head Hires Hutchinson Lilley COO for Start-Up – HFM Week (subscription)

A London-based start-up hedge fund founded by ex-Barclays FX sales head Marcello Cavalcanti has hired Hutchinson Lilley’s COO to head operations. Shares Drop on SEC Cryptocurrency Probe – Wall Street Journal (subscription) shares fell 4.4% after the company’s cryptocurrency-focused subsidiary, tZero, said the Securities and Exchange Commission was investigating its sale of digital tokens.

InTouch FX Expands into North America – Profit & Loss

Market intelligence provider InTouch FX has expanded its coverage to cover North American hours with the hire of Adrian Thong who will lead the service.

trueEX opens Singapore office – The Trade

US based swap execution facility expands into Asia-Pacific following a record year of trading activity.

Market Savvy 

Ramaphosa Euphoria Risks Fading for South African Investors – Financial Times (subscription)

The rand retraced some of its gains this week as investors perhaps reflected that, positive as the country’s changes undoubtedly are, its future is far from certain.

Bitcoin’s Plunge in Volume Stirs Questions About Its Popularity – Bloomberg

Earlier this year, when bitcoin’s price fell by more than 60 percent from its record close, a less-noticed bitcoin figure also plunged: the number of daily transactions.