Top Headlines

Barclays, JPMorgan, Citi Help US Broaden Currency Probe – Bloomberg

The three banks have cooperated to provide evidence of a potential new antitrust conspiracy in the currency spot market that prosecutors say involves different currencies than the ones at the center of their 2015 guilty pleas.

Good Month for CLS – Profit & Loss

CLS was another market mechanism to receive a boost from the US election, with data from the settlement services provider showing the number of instructions submitted and the value settled both rising strongly.

Dollar Steadies as Pre-Fed Nerves Dominate – Reuters

The dollar steadied against the yen and euro after its weakest day in a week, with markets still uneasy that a Federal Reserve meeting ending on Wednesday may provoke more investors to cash in the greenback’s recent gains.

Sterling Rises After Hammond Argues for Staggered Brexit – Reuters

Sterling rose as investors awaited British inflation data for November, helped by finance minister Philip Hammond’s comments supporting a staggered transition period for the country’s exit from the European Union.

Trump Policy Shifts Pose ‘Unthinkable’ Risks for China Investors – Financial Times (subscription)

Stranger than fiction? US stance and capital curbs rewrite rules for multinationals.

Be Careful What You Wish for Mr President, a Stumble in Relations Could Send China’s Currency for a Tumble – South China Morning Post

The incoming administration in Washington should recognise that Beijing has spent US$800 billion defending its currency in recent times.

Even Before Brexit, London Lost Its Status as Derivatives Center – Bloomberg

New York has now eclipsed the city as the biggest center for off-exchange derivatives trading.

Toxic Mix Brewing for Ailing Lira as Turkey Economy Shrinks – Bloomberg

Defending the lira has just gotten harder.

How Donald Trump May Actually Widen the US Trade Deficit – Wall Street Journal (subscription)

A strengthening dollar signals a widening gap between imports and exports.

FX Feeds’ Sudden Evolutionary Leap – Waters Technology (subscription)

Firms’ best execution requirements and desire to expand strategies into FX markets are creating demand for a new breed of high-performance FX datafeeds.

Regulatory News

EC Signals Staggered Entry for MiFID II Trading Obligation – Risk (subscription)

Rules for derivatives may take effect after January 2018 to allow for US equivalence deal.

SEC Chair White Defies Republican Requests to Stall Rulemaking – Reuters

US Securities and Exchange Commission Chair Mary Jo White defied requests by Senate Republicans to delay adopting new rules on everything from derivatives to mutual funds until after President-elect Donald Trump takes office.

Brussels Narrows LSE-Deutsche Börse Probe to Derivatives Clearing – Financial Times (subscription)

A hardline approach by Brussels on clearing will be a big hurdle to overcome to seal the deal.

Company News

Tradebook Launches Cross-Asset Benchmark Tool – Profit & Loss

Bloomberg Tradebook has released a new cross-asset tool designed to enable firms to trade one security relative to a set benchmark.

Earthport Expands BAML’s Cross Border Payment Service – Profit & Loss

Earthport, which provides a payment network for cross-border payments, says that it is expanding service with Bank of America Merrill Lynch (BAML).

Thomson Reuters Consolidates Regulatory Feeds – Waters Technology (subscription)

The service will enable compliance teams to monitor regulatory alerts from over 750 regulatory bodies via a single feed.

Market Savvy

Asian Currencies Firmer After US Bond Yields Slip from Highs – Reuters

Most Asian currencies firmed against the dollar, finding support as a rise in US bond yields took a pause, although gains were limited ahead of a Federal Reserve policy decision coming up this week.

C$ Posts Fresh Seven-Week High as Oil Climbs – Reuters

The Canadian dollar strengthened to a fresh seven-week high against its US counterpart as oil surged and investors weighed what message will accompany an expected interest rate hike this week from the Federal Reserve.

NZ Dollar Gains as Lift in Commodities Bolsters Currencies – Scoop

New Zealand dollar gains as lift in crude oil, commodities bolsters currencies linked to raw materials.

South Africa’s Rand Gains More Than One Percent, Tracks Commodity Currencies – Reuters

South Africa’s rand climbed more than one percent against the dollar, mainly tracking a rally in commodity currencies driven by firmer metal prices.