Bank of England and Fed Examine Traders’ Access to Audio Feeds – Financial Times

The US and UK central banks are scrutinising their broadcast feeds for potential weak spots after the revelation that some traders and hedge funds may have been paying for early audio access to the Bank of England’s press conferences.

Andrew Bailey Selected to be Next Bank of England Governor – Financial Times

Andrew Bailey, head of the Financial Conduct Authority, has been selected as the new governor of the Bank of England, with the appointment to be announced as early as Friday.

Wounded Sterling on Track for a Woeful Week as Brexit Worries Revive – Reuters

Sterling headed for its worst week in more than two years on Friday, hobbled by familiar fears of a chaotic British exit from the European Union, while firm data helped the dollar arrest its recent slide.

A Yen Revival Is on Its Way After the Quietest Year in Five Decades – Bloomberg

Traders hoping for more volatility in the yen next year are likely to be disappointed, but bulls can take solace in the currency’s upward bias amid a narrowing in the interest rate differential between the US and Japan.

China Says in Touch With US on Signing of Phase 1 Trade Deal – Reuters

China and the United States are in touch over the signing of their Phase 1 trade deal, China’s commerce ministry said, which will see lower US tariffs on Chinese goods and higher Chinese purchases of US farm, energy and manufactured goods.

Demand for Fed’s Year-End Repo Offering Falls Short of Supply for First Time – Reuters

Wall Street firms might be close to building up all of the cash they will need to get them through the end of the year, based on the weaker demand for cash injections from the Federal Reserve.

World Bank Warns on ‘Towering’ $55tn Emerging Market Debt Pile – Financial Times

Fastest and widest surge in borrowing poses risk should era of low interest rates end.

Argentine Cenbank Cuts Benchmark Interest Rate to 58% from 63% – Reuters

The Central Bank of Argentina cut its benchmark interest rate to 58% from 63%, part of the new center-left government’s effort to reactivate the stagnant economy.

‘Worst’ of Hong Kong Protests ‘Probably’ Over, Carrie Lam Adviser Says – Bloomberg

The worst of Hong Kong’s months-long pro-democracy protests might now be over, a top adviser to Hong Kong’s leader said, as the city experiences a lull in demonstrations after local elections in late November and ahead of the Christmas holiday.

Regulatory News

ISDA Launches Another Ibor Consultation – Profit & Loss

The International Swaps and Derivatives Association has launched a supplemental consultation on the spread and term adjustments that would apply to fallbacks for derivatives referencing euro Libor and Euribor in the event those benchmarks are permanently discontinued. 

CFTC Provides Relief to Market Participants Transitioning Away from Libor – Profit & Loss

Three divisions of the US Commodity Futures Trading Commission have issued a no-action letter that provides relief to swap dealers and other market participants as it relates to the industry-wide initiative to transition from swaps that reference Libor and other interbank offered rates to swaps that reference alternative benchmarks. 

Associations Publish Updated Master Regulatory Reporting Agreement – Profit & Loss

Five industry associations have published a new agreement intended to simplify derivatives reporting across different European Union regulatory regimes.

Sonia Users Push for Official In-Arrears Rate – Risk

US Fed proposal for compounded SOFR index leads to calls for endorsement of NatWest’s Sonia calculation.

Crypto News

Binance Takes Minority Stake in Crypto Derivatives Exchange FTX – Bloomberg

Binance Holdings Ltd., one of the world’s largest cryptocurrency-trading platforms, made a minority investment in the derivatives exchange FTX.

Crypto Will Soon Replace Fiat, But How Soon and Where? – Coin Telegraph

A recently unveiled Deutsche Bank report boldly puts a date on the eventual fiat–crypto “social consensus flip,” citing the Asian continent and, in particular, China, to have already recognized the trend. If true, then what every cryptocurrency speculator and investor would like to know is, when will it happen? 

Fortress to Redouble Efforts to Purchase Mt. Gox Creditor Claims – Bloomberg

Fortress Investment Group LLC is redoubling efforts to buy up creditor claims from the defunct Mt. Gox cryptocurrency exchange, albeit at a lower price than in an initial proposal earlier this year.

BitGo Warns Users to Withdraw Bitcoin SV Over Hard Fork Threat to Wallets – CoinDesk

A major code update for the cryptocurrency bitcoin SV (for Satoshi’s vision) will render some features of BitGo’s wallets useless, the crypto custodian says.

Company News

Harris Departs Campbell & Company – Profit & Loss

Michael Harris has left his role as president of Campbell & Company.

Credit Suisse Makes Sweeping Leadership Changes at Struggling Investment Bank – Financial News

David Miller, who took over in November, has installed new leaders and shaken up the structure of the division.

Crisil Buys Greenwich Associates – Profit & Loss

S&P Global-owned analytics company Crisil has bought market infrastructure research and strategy firm Greenwich Associates, the terms of the deal were not disclosed.

BlackRock and Temasek are in Talks on Joint Venture in China – Bloomberg

BlackRock Inc. and Temasek Holdings Pte are in discussions to start an asset management business in China along with one of the country’s biggest banks. 

Market Savvy

Sweden Fears it May Have Created a Negative-Rates Monster – Financial Times

Central bank raises rate to zero and says it expects to hold it there ‘in coming years’.

China Keeps Lending Benchmark LPR Steady – Reuters

China stood pat on its lending benchmark rate on Friday, as widely expected, after the central bank kept borrowing costs of medium-term loans steady earlier this month.

Japan’s Draft Budget Tops 100tn Yen for 2nd Year in Row – Nikkei Asian Review

Japan’s cabinet on Friday signed off on a record 102.6 trillion yen ($938.8 billion) spending plan for the fiscal year through March 2021.

A Stunning Hong Kong Dollar Rally is Quickly Unraveling – Bloomberg

A stunning rally in the Hong Kong dollar is unraveling quickly, with the currency falling back to the weak half of its trading band.