Top Headlines

Barclays Trader Says He Was Thrown to Wolves Amid FX Scandal – Bloomberg

Barclays traders working on the “front-line” of the foreign-exchange market were sacrificed to satisfy regulators and save the reputations of senior executives, according to an employee fired amid the scandal.

Pound Nears Record Low Against Currency Basket – Wall Street Journal (subscription)

The British pound fell close to its lowest level in history against a basket of trade-weighted currencies this week, as investors continue to worry about the terms of the country’s planned exit from the European Union.

European Bonds, Currencies Rattled by ECB Tapering Report – Financial Times (subscription)

Eurozone bond and currency markets have been rattled by reports that the European Central Bank might begin to scale back its quantitative easing programme, despite the still-tepid economic recovery and subdued inflation.

FCA Proposes More Transparency on Asset Managers’ Costs – Financial Times (subscription)

The Financial Conduct Authority has today proposed that asset managers give their pension fund clients a full breakdown of transaction costs – such as additional charges incurred from special taxes or trading – when requested.

Top Forecaster Sees Dollar Gain With Either Trump or Clinton – Bloomberg

For the world’s top currency forecaster, the dollar is a buy whatever the outcome of the US presidential election.

Latest Platform Volumes Show Mixed Performance – Profit & Loss

The latest batch of monthly volumes to be reported by the multibank FX platforms are more mixed, after Hotspot, FastMatch and Gain GTX all posted month-on-month and year-on-year increases in their September volumes earlier this week.

Asia FX Outlook Improves as Hesitant Fed Chains Dollar – Reuters

The outlook for emerging Asian currencies has brightened somewhat in recent months, as receding expectations of rapid rate hikes in the US restrain the dollar and China’s economy shows tentative signs of stabilising, a Reuters poll found.

Contracts for Difference Gain Traction in FX – Euromoney

Regulators might not like them, but many FX brokers view contracts for difference as an opportunity to differentiate their offering in a highly competitive market.

Companies Turn Arbitrage Traders – Financial Times (subscription)

The principle that you should not be able to make a risk-free return by arbitraging currency markets and interest rates has now been broken for some time.

The Growing Pains of P2P FX – Euromoney

Peer-to-peer foreign exchange is touted as a revolutionary low-cost way to exchange currencies, but the sector faces challenges.

Trump-Clinton Risks to Steer Aussie as RBA Keeps Powder Dry – Bloomberg

Monetary policy is set to take a backseat for investors looking at the Australian dollar as risks from the US presidential election and the European Union’s divisions come into sharper focus.

SA’s Rand is Undervalued – IoL

South Africa’s rand is currently undervalued and fluctuations in the currency are partly driven by political turmoil, said Reserve Bank Governor Lesetja Kganyago.

Regulatory News

FX in Focus as Investors Weigh Central Bank Outlook – Financial Times (subscription)

Financial assets across Asia were being pulled in all directions as investors weighed the outlook for global central bank stimulus.

Lawmakers Rush to Double Euribor Panel Membership – Risk (subscription)

Benchmark designated “critical” to stem departures and enable transaction-based methodology.

Esma Consults on Managing Trading Venues and Reporting Services – FTSE Global Markets

The guidelines provide draft provisions management bodies of market operators and data reporting services providers will have to apply once MiFID II has entered into force.

Firm ID Code Adoption Remains Low – FOW (subscription)

The number of legal entity identifiers, a code to identify financial firms under MiFID II, has remained low, according to a new study that suggests firms are risking being out of compliance when the controversial European regulatory reforms take effect in January 2018.

Company News 

Yuan’s Reserve Currency Status No Gamechanger for Corporates – Wall Street Journal (subscription)

The inclusion of the Chinese yuan in the International Monetary Fund’s basket of reserve currencies on October 1 will not increase its usage by multinationals — at least for the moment, experts say. 

ITG and State Street Integrate TCA With FX Trading Platform – The Trade

ITG has integrated its transaction cost analysis solution with State Street’s multi-bank foreign exchange trading platform, FX Connect.

LMAX Exchange Selects Metamako – Profit & Loss

LMAX Exchange has selected Metamako to actively monitor all incoming and outgoing FX data in the firm’s core matching engine system.

Market Savvy

Dollar at Four-Week Highs vs Yen before Friday Jobs Report – Reuters

The dollar ground higher, extending this week’s four-week highs against the yen before a US jobs report many expect to help seal the case for a rise in US interest rates in December.

Emerging Market Rally Fades as Central Bank Angst Outweighs Oil – Bloomberg

The advance that has pushed emerging-market stock valuations to the highest levels in more than a year lost momentum as signs that central banks may pull back stimulus that has propped up demand for riskier assets outweighed rising oil prices.

Egyptian Pound Tumbles to Record Low on Black Market – Wall Street Journal (subscription)

Bets on imminent devaluation remain high as economy struggles amid dollar shortage.