Top Headlines 

Accused UK Traders Were Only Kidding, US Jury Told – Financial Times (subscription)

Three UK-based bank traders accused of fixing foreign exchange markets through a private chatroom were engaging in a comic back-and-forth to blow off steam and broke no laws, their attorneys said in opening arguments at their trial in New York.

Everything That Goes Wrong When Stocks and Bonds Fall Together – Bloomberg

Bonds and equities are doing something they don’t usually do – fall in unison – with the latest move driving their normal inverse correlation to the weakest levels of the past two decades.

IMF’s Lagarde Warns Against Trade, Currency Wars, Urges Fix to Global Rules – Reuters

International Monetary Fund Managing Director Christine Lagarde on Thursday warned countries against engaging in trade and currency wars that hurt global growth and imperil “innocent bystanders.”

Regulatory News

Financial Conduct Authority Unveils No-Deal Brexit Plan for EU Finance Firms – Financial Times (subscription)

The UK financial regulator on Wednesday stepped up its preparations for a no-deal Brexit by outlining detailed plans for the oversight of EU financial services firms with operations in Britain.

Mifid II Authorisation Rules Remain Ambiguous: Legal Expert – Global Investor (subscription) 

Third country access and commodity derivatives authorisation rules are still unclear, a legal expert said.

Stuck in Traffic: EU Turf War Holds Up CCP Resolution Rules – (subscription)

Unsuitable rules for failed banks could be used to resolve French and German clearing houses.

Nicky Morgan Vows to Take Hedge Fund Polling Probe to FCA – Financial News (subscription)

The chair of UK’s influential Treasury Committee is concerned that pollsters make market-sensitive data, such as exit polls taken on the day of voting, available to hedge funds before it can legally be made available to the public — thereby giving them a “trading advantage”.

Scrapping Libor Leaves $500bn of Bond Contracts in Limbo – Financial Times (subscription)

Over $500bn in bonds may need to have their documentation rewritten as a result of the shift away from the Libor benchmark, according to law firm Linklaters.

CFTC Proposes to Streamline Regulations for Commodity Pool Operators and Commodity Trading Advisors – CFTC

The Commodity Futures Trading Commission (CFTC) unanimously approved proposed rules as a part of CFTC’s KISS Initiative to simplify regulations for commodity pool operators and commodity trading advisors.

Crypto News

FSB Outlines Potential Financial Stability Issues from Crypto-Assets – Profit & Loss

The Financial Stability Board report includes an assessment of the primary risks present in crypto-assets and their markets, such as low liquidity, the use of leverage, market risks from volatility, and operational risks.

EU Regulators Studying Crypto Assets Case By Case – Reuters

The European Union’s securities watchdog said it was examining every initial coin offering (ICO) to see whether it should be regulated, mirroring moves by its US counterpart.

Cryptocurrency Theft Hits Nearly $1 Billion in First Nine Months: Report – Reuters

Theft of cryptocurrencies through hacking of exchanges and trading platforms soared to $927 million in the first nine months of the year, up nearly 250 percent from the level seen in 2017. 

CQG to Provide Trading Tech for ErisX Crypto Exchange – The Trade Crypto

Eris Exchange has chosen to use CQG’s front-end trading platform for its new marketplace for digital asset spot and future contracts.

Gemini Taps Wall Street Exec to Attract Institutional Crypto Investors – CoinDesk

The New York-licensed exchange said that Jeanine Hightower-Sellitto – previously chief operating officer at the Nasdaq-owned International Securities Exchange (ISE) – is joining the firm as managing director of operations.

Tilde Collaborates with TradAir for Asian Crypto Solution – Profit & Loss

Asian cryptocurrency liquidity provider Tilde is working with TradAir, a platform solution provider for institutional FX and cryptocurrency trading, to introduce electronic cryptocurrency trades among institutional investors in Asia.

European Bitcoin Exchange in “Final Stages” – Global Investor

A former Merrill Lynch quant has said his crypto-currency start-up is close to receiving regulatory approval to launch a Europe-based bitcoin future and options, a possible breakthrough for the nascent European market.

New Crypto Consortium Seeks to Alleviate Liquidity Problems – Bloomberg

San Francisco-based startup Blockstream Corp. has launched the Liquid Network, which connects cryptocurrency exchanges, brokers and financial institutions around the world. So far, more than 20 companies have signed up, including Bitfinex, Bitmex and OKCoin. 

Company News 

Barclays Gives Specs to FX Participants – FX Week (subscription)

The client portal originally launched for equities in 2015 is now available for foreign exchange.

Itiviti Unveils Packaged FX Solution – Profit & Loss

Trading technology and financial infrastructure provider Itiviti has launched Itiviti FX, a foreign exchange trading solution that the firm says is built for today’s dynamic FX market landscape and designed for compliance with the latest regulatory requirements, including MiFID II. 

Market Savvy 

Dollar Struggles on Softer US Yields; Swedish Crown Jumps – Reuters

The dollar weakened on Thursday following an overnight drop in US Treasury yields, though moves in foreign exchange markets were far more contained than the global rout in stocks.

Sterling Sits Tight as Investors Await Further Brexit Progress – Reuters

The pound traded flat on Thursday despite signs the EU and Britain may soon agree a Brexit deal, with investors cautious about the prospect of resolving the Ireland border issue.

Wall Street Faces More Tumult If China is Labeled an FX Manipulator – Bloomberg

Wall Street is bracing for the prospect that the US uses this month’s semiannual foreign-exchange report to label China a currency manipulator, escalating the trade standoff between the two nations at a time when rising bond yields are already denting riskier assets.