Top Headlines 

Bank of America to Pay $30 Million ‘Manipulation’ Penalty: CFTC – Reuters

US regulators ordered Bank of America on Wednesday to pay a $30 million civil penalty for what it called attempted manipulation of the swaps and derivatives benchmark.

The P&L Debate: Is Trend-Following Dead? – Profit & Loss

Has trend-following had its day as a trading strategy? The Profit & Loss editors go head-to-head on this debate.

Does Crypto Need a Code of Conduct? – Profit & Loss

If ever there was a crazy world, it is crypto-land and this week highlighted this with some fantastic instances of “dolly out of the pram” tantrums.

DoJ Seeks Stay on Benchmark Case Discovery – FX Week (subscription)

The US Department of Justice is seeking another three-month extension on a limited discovery stay in the foreign exchange benchmark rates antitrust case against several large banks. It last sought a temporary halt in June.

King Dollar, Robo Traders Are the Talk of the Currency Universe – Bloomberg

King Dollar is unlikely to lose its crown before the end of the year. Among the reasons for its trend to continue: a hawkish Federal Reserve backed up by US economic fundamentals, a European Central Bank on hold until late next year and Brexit.

Spotlight on Auction in €114m Nasdaq Clearing Blow-Up – (subscription)

A four-member auction may have turned the 27% margin breach into a huge default fund loss.

Fund Managers Predict Years of Haggling Over Mifid II Research Costs – Financial News (subscription)

Europe’s fund managers expect to be negotiating the price of investment research for at least another two years.

Regulatory News 

SEC Proposal to Limit Big Whistleblower Awards Draws Criticism – The Wall Street Journal (subscription)

A proposal from the Securities and Exchange Commission to change rules governing its whistleblower program was condemned by commenters who said the agency is turning its back on the tipsters who expose financial crimes.

UK Banks Face Renewed French Push to Stiffen MiFID Access Rule – Bloomberg

With time running short in the divorce talks, France stepped up its push for a tightening of the MiFID II rules on how firms outside the bloc can gain access to EU financial markets.

Derivatives Analytics Firm Urges UK Pension Funds and Asset Managers to Plan for Initial Margin Rules – HedgeWeek

Post-financial crisis regulatory changes in derivatives trading have forced change on how UK pension funds and large asset managers conduct their business, according to Maxime Jeanniard du Dot, the COO of derivatives analytics firm OpenGamma. 

Trump Picks Expert on Regulation for Federal Reserve Board – The New York Times

President Trump nominated Nellie Liang, a longtime Federal Reserve staff member who is an expert on financial regulation, on Wednesday to join the Fed’s board of governors.

Crypto News 

Fidelity Investments To Announce Cryptocurrency, Blockchain Products By 2018-End – International Business Times

The CEO of investment firm Fidelity Investments, Abigail Johnson says that a team at Fidelity are working on blockchain and cryptocurrency related products and services.

Crypto Pioneer David Chaum Says He’s Built a Better Bitcoin – The Wall Street Journal (subscription)

A new platform, called Elixxir, promises to improve on bitcoin’s speed by processing thousands of transactions a second. 

Hackers Are Targeting Bitcoin With a Leaked NSA Software Tip, Report Says – Bloomberg

Hackers are illegally generating Monero, Bitcoin and other cryptocurrencies by exploiting a software flaw that was leaked from the US government, according to new research, raising questions about the security of one of the fastest-growing corners of financial markets.

Hackers Steal $60m from Japanese Cryptocurrency Exchange – Financial Times (subscription)

Hackers have stolen $60m from a Japanese digital currency exchange, as security problems continue to plague cryptocurrencies. 

Company News 

HSBC Urges Bankers to Speak Up After Leaked Memo Attacks Leadership – Financial News (subscription)

HSBC has urged its top UK investment bankers to come forward with any concerns about the way the business is being run following a public attack on the division’s leadership.

A BGC Partners Broker Knew How Much Money the Desks Made. Then He Leaked It – Bloomberg

Forgetting to turn off a junior employee’s access to a secret spreadsheet has come back to haunt BGC Partners.

Investment Association Appoints Three Women in Board Overhaul – Financial News (subscription)

Senior women working in UK fund management will now have a bigger voice in the industry’s lobbying efforts after the Investment Association overhauled its board of directors.

Goldman Sachs Nears Deal to Spin Off ‘Simon’ App – The Wall Street Journal (subscription)

Goldman Sachs is nearing a deal to spin off its three-year-old app that sells complex investment products, the bank’s latest bid to profit from its internal technology.

OCC Refunds Clearing Members Nearly $80 Million – FOW (subscription)

The OCC paid clearing members a refund totalling $78.7 million under its capital plan.

Market Savvy 

Dollar Stuck Near Seven-Week Low as Trade War Fears Fade – Reuters

The dollar hovered near a seven-week low against a basket of major currencies on Thursday, its safe-haven appeal lessened by fading fears about a trade row between China and the United States.

Sterling Extends Gains After Forecast-Beating Retail Sales – Reuters

Sterling rallied on Thursday after British retail sales data beat forecasts and on growing optimism that Britain and the European Union can make significant progress towards a Brexit deal at an EU leaders summit.

Bearish Bets Remain as Edgy Investors Retreat from Risky Asian currencies: Reuters poll – Reuters

Bets that most Asian currencies will continue to come under pressure from a strong dollar and the intensifying Sino-US trade war have risen over the last two weeks, a Reuters poll showed.

Emerging Markets are Looking Like a Good Buy – But Prices Could Fall Further, Analyst Warns – CNBC

Several emerging market assets are trading at record lows, but prices could fall further based on sentiment alone.