Banks Prepare to Settle with Brussels Over Forex Cartel Probe – Financial Times (subscription)
Eight of the world’s largest banks are set to discuss financial settlements with the European Commission, drawing a line under a four-year probe into allegations they formed a cartel to rig the $5.3tn global foreign exchange market.
Rogue Traders Will Always Bank on Getting Away with It – Financial Times (subscription)
Risk officers need to stay sharp to fight malpractice.
Euro Rebounds from Earlier Lows as Traders Brush Off Germany Worries – Reuters
The euro recovered from a two-month low against the yen touched in Asian trade, with investors brushing off the broader political risks of a failure of German Chancellor Angela Merkel to form a three-way coalition government.
Sterling Hits 2½ Week High Against Dollar on Brexit Talk Hopes – Reuters
Sterling rose half a percent to a 2½ week high, with weekend news on the progress of Brexit negotiations interpreted as mildly positive for the British currency.
EU Proposals Feed Hopes of Forex Forward VM Relief – Risk (subscription)
Proposals published by the Council of the EU are fuelling expectations that buy-side firms will not have to post variation margin on certain foreign exchange forwards from next year – a controversial quirk of Europe’s rules.
Brexit Pushes EU Bank Regulator Into Arms of Continental Suitors – Bloomberg
The European Banking Authority gets a new home, as Brexit forces the regulator and its 180 employees to abandon their high-rise digs in London’s Canary Wharf financial district and relocate to the continent.
Bankers Shifting from London After Brexit May Face Lower Pay – Reuters
Bankers relocating from London to other European financial hubs following Britain’s exit from the European Union could face lower pay packages, according to an industry survey published by compensation consultant Emolument.
Finding a Use for AI in FX – Profit & Loss (subscription)
The power of AI lies in its ability to handle ridiculous (to a human), amounts of data and it is here that its use may diverge along market structure lines.
The Franchise Builder? – Profit & Loss (subscription)
NewChangeFX believes TCA can be about more than measuring execution quality.
Esma Guidance on Swaps Transparency Still Leaves Questions – Risk (subscription)
Volatile instrument attributes removed from transparency determination, but further issues remain.
Treasury Calls for Overhaul of Systemically Important Designation – Wall Street Journal (subscription)
Report recommends higher bar for applying label, which triggers stricter regulation.
China’s Own Dodd-Frank Act Aims to Tame Wealth Management Sector as Crackdown on Risky Financial Activity Gathers Pace – South China Morning Post
New set of restrictions could have wide-ranging impact by curbing the products financial institutions can offer and the clients they can serve.
Lack of Regulatory Clarity Holding Back Blockchain – American Banker
Blockchain holds the dual promise of faster and cheaper transactions for financial services firms. But a lack of regulatory clarity about blockchain could slow innovation.
NEX Group Sees Increased Revenues – Profit & Loss
NEX Group (Nex) has unveiled increased revenues for the six months to September 2017, however operating profit has dipped.
Cboe Waits on Closing Approval – Markets Media
If the regulator does not kick the can down the road, the US Securities and Exchange Commission should make its decision whether to approve Cboe Global Market’s Bats Market Close today.
Hong Kong’s Bitcoin Businesses Suffer After Local Bank Accounts Frozen – South China Morning Post
Companies say they have had to go to foreign banks after disruption.
Former CME Europe Chief Cees Vermaas Leaves – FOW (subscription)
Cees Vermaas joined CME Europe in early 2015 after 12 years with European exchange Euronext.
Fork Talk Lifts Bitcoin to All-Time High Near $8,000 – Reuters
Bitcoin hit an all-time high just below $8,000, on talk that a software upgrade whose suspension sent the cryptocurrency into a tailspin at the end of last week was, after all, going ahead within hours.
Emerging Markets in Focus: Chile, South Africa, Hungary, India – Bloomberg
Chile’s presidential elections, the fate of South Africa’s local-currency ratings and Nigeria’s sale of $2.5 billion of Eurobonds will provide the focal points for emerging market investors in the coming week.