Top Headlines 

Banks’ Guilty Pleas Fair Game in Forex Traders’ October Trial – Law360 (subscription)

Federal prosecutors set to try three former currency traders for fixing exchange rates received a New York federal judge’s blessing Monday to tell jurors that the men’s former employers – including Barclays, JPMorgan and Citicorp – have themselves pled guilty to such price-fixing.

Bogucki Seeks Trial Delay Until Johnson Review – FX Week (subscription)

Robert Bogucki’s attorneys have asked a California federal judge to postpone his upcoming trial, until a New York appeal court reviews what they believe are similar issues outlined in a petition brought by a former HSBC banker recently convicted of fraud. 

Brexit Prompts JPMorgan, Deutsche Bank to Use Paris for Trades – Bloomberg

Banks to send clients’ CDS trades to French clearinghouse while a no-deal Brexit would stop European clients accessing ICE.

City Think-Tank Attacks Fund Management’s ‘Meritocracy Myth’ – Financial News (subscription)

Fund managers’ conviction that the best candidates rise to the top of their industry is a “meritocracy myth” that puts hurdles in the path of female and ethnic minority professionals, according to a hard-hitting new report. 

Regulatory News 

David Davis-Backed Brexit Plan Calls for Big Mifid II Changes – Financial News (subscription)

An alternative plan for Brexit backed by eurosceptic MPs David Davis and Boris Johnson has called for the UK to scrap key tenets of Europe’s financial rulebook — including groundbreaking regulations on paying for investment research.

UK Finance Dealt Another Brexit Blow by Brussels Lawmakers – Bloomberg

UK-based firms would probably need to open a unit in the EU to continue underwriting stocks and bonds and doing market-making business for clients in the bloc under draft legislation endorsed by a European Parliament committee.

A Solution for Consistency – ISDA

Earlier this year, when testifying to a US Congressional committee, ISDA Chief Executive Officer Scott O’Malia proposed a holistic solution to the lack of harmonization between Commodity Futures Trading Commission and Securities and Exchange Committee rules. Since then, ISDA has been putting flesh on the bones of that idea, and has published a paper on how it might work.

Derivatives and Debt Markets Face Race to End Links with Libor – Financial Times (subscription)

Authorities appear to have run out of patience with uncoordinated approaches. 

Esma Yet to Address SI Tick Size Regime for Derivatives – FOW (subscription)

Concerns about valuation and price formation are most relevant for shares and depositary receipts, Esma says.

FCA to Scrutinise Interdealer Broker Activity for PFOF Breaches – FOW (subscription)

The UK regulator will assess whether brokers are routing orders overseas to circumvent Payment for Order Flow (PFOF) rules. 

Crypto News 

What Will Lead to a Decoupling of Cryptocurrencies? – Profit & Loss

The differences between bitcoin, ether and ripple are manifold. The simple fact that few have been able to reach consensus on whether various cryptoassets are a commodity, a currency or a security suggests that these assets are not all the same. 

Proof of Work vs Proof of Stake: What to Expect from Ethereum’s Protocol Shift – Profit & Loss

Ethereum, the blockchain-based network that was proposed in 2013 and released in mid-2015 to provide a virtual “world computer” as the base layer for decentralised apps, has begun steps to move the methodology for confirming transactions from Proof of Work to a Proof of Stake methodology.

Distrust in Crypto Means Distrust of Financial System Says BIS – FOW (subscription)

The Bank for International Settlements says cryptocurrency-based product growth brings crypto in scope of financial regulation.

Five Reasons Why Bitcoin Fails the Innovation Test – Financial Times (subscription)

There are five simple tests for a genuine financial innovation. Is it cheaper? Does it offer much better service? Is it faster? Does it democratise access? And what are its side effects? 

Company News 

Coote Named MD at Cobalt – Profit & Loss

FX post-trade processing network provider Cobalt has appointed FX industry veteran Darren Coote as managing director. 

Bambury New CTO at Integral – Profit & Loss

Integral has announced the appointment of ex-ION Trading CEO Gavin Bambury as its chief technology officer.

A Startup Offers a New Vision for Trading Across Different Markets – The Wall Street Journal (subscription)

OCX Group, a Silicon Valley-funded startup, is offering OneChronos, a new trading platform to match traders across different markets. Its vision: a hub for traders to exchange all kinds of assets – currencies, stocks and bonds, to name a few.

Algomi Pivots Offering Away from Honeycomb to Alfa – Buy-Side Technology (subscription)

The vendor is changing its course in 2019 and focusing on the development of the Alfa platform.

Market Savvy 

Sterling Rises for Second Day on Hopes for Brexit Deal – Reuters

Sterling rose for a second day on Tuesday as risk appetite improved and expectations of a Brexit deal grew, prompting investors to buy the pound after a selloff last week. 

Euro Struggles Despite Draghi’s Inflation Comments – Reuters

The euro struggled on Tuesday despite European Central Bank president Mario Draghi’s comments about “relatively vigorous” inflation in the previous session, while the dollar paused before the US Federal Reserve’s policy meeting. 

Twin Deficits Still Look Conducive to Dollar Strength – Financial Times (subscription)

Reserve currency still looks best of a bad bunch against the euro, yen and renminbi. 

Hibor’s Advance on Libor Reduces Hong Kong Carry Trade Appeal – Financial Times (subscription)

Defending Hong Kong’s currency peg is top of the agenda for the city’s de facto central bank. But the task became more challenging earlier this year when the divergence between Hong Kong and US interbank lending rates hit its widest level in a decade.