Top Headlines
Brexit Helps New York Take Top Finance Spot from London: Survey – Reuters
Fallout from Brexit has helped New York overtake London to become the world’s pre-eminent financial centre, a survey of financial executives by Duff & Phelps shows.
CLS Names New CEO – Profit & Loss
CLS has named Marc Bayle de Jessé as its new CEO, effective 2 December. He will join from the European Central Bank where he is currently director general, market infrastructure and payments and chair of the Market Infrastructure Board.
Potter, Dzina to Step Down from NY Fed – Profit & Loss
Simon Potter, head of the Markets Group at the Federal Reserve Bank of New York and outgoing chair of the Global FX Committee, is to leave the NY Fed at the end of this week, it has been announced. As well as Potter, Richard Dzina, head of the NY Fed’s Financial Services Group is also leaving the central bank, which says it will conduct a “broad and thorough” search for their successors.
US Spares China Currency Manipulator Label, Expands Watchlist – Bloomberg (subscription)
The Trump administration again refrained from labeling China a currency manipulator on Tuesday, a decision that leaves one of the president’s campaign promises unfulfilled but avoids further escalation in the trade war between the world’s two largest economies.
Regulatory News
EU Backtracks on Post-Brexit Share Trading Curbs – Financial Times (subscription)
EU regulators have backed away from plans to force EU investors to trade some of the UK’s biggest companies in the bloc rather than in London in the event of a no-deal Brexit.
LIBOR. The Big Reversal – Tabb Forum
When regulators assume responsibility for risk management, private sector innovation is stunted. Lately, regulators have been waking up to the possibility that they have micromanaged the private sector choice of a LIBOR replacement with potentially damaging unintended results.
Mifid II Has Already Reduced Liquidity – Financial Times (subscription)
Unbundling might well help reduce fees for private investors (a long-established trend). What we can say is that it has already reduced liquidity, which, for the majority of stocks, has been affected by reduced secondary market activity. The obvious result is wider spreads, to the cost of the investor, and increased volatility.
UBS Believes Regulatory Costs Have Peaked, Compliance Chief Says – Euronews
UBS expects regulatory costs to remain significant over the coming years but to fall from the high levels the Swiss bank has faced since 2014, its compliance chief said.
The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers on the implementation of the European Markets Infrastructure Regulation (EMIR). The updated Q&As provide clarifications on the new framework introduced by Regulation 2019/834 amending EMIR (so-called EMIR Refit) and amends an existing Q&A on novation.
Crypto News
Bitcoin’s Wild Ride Resumes as Volatility Returns with Vengeance – Bloomberg (subscription)
Bitcoin volatility is rearing its ugly head once again, disrupting the relatively calm rally crypto enthusiasts have basked in for the past month. Average daily up-and-down moves in Bitcoin have gotten more pronounced, mimicking trading volatility last seen at the end of 2018 when crypto prices suffered through an extended downward draft.
Sarb Announces ‘CBDC Feasibility Project’ – FX Week (subscription)
The South African Reserve Bank (Sarb) has invited bids from private companies to develop the infrastructure necessary for a central bank digital currency, or CBDC.
What Will It Take to Regulate Crypto Exchanges? – CoinDesk
Shortly after Bitcoin was delisted from Binance CoinDesk advisor Michael Casey published an insightful op-ed discussing whether the delisting amounted to censorship (it doesn’t), whether exchanges should be held to high standards of neutrality (they should) and whether regulation is necessary to achieve this result (it is).
Blockchain.com Loses Goldman Sachs Veteran to Ripple – The Block
Crypto wallet provider Blockchain.com has lost yet another Wall Street veteran.
Breanne Madigan, a former Goldman Sachs executive, has left Blockchain.com for Ripple. Her exit followed that of Jamie Selway, previously global head of institutional markets at the firm.
Mike Novogratz’s Galaxy Digital Snags Former Coinbase OTC Head – The Block
Tim Plakas, once the head of over-the-counter trading at Coinbase, has left the exchange to bolster Galaxy Digital’s OTC efforts. It is not yet clear what Plakas’ position will be within Galaxy’s OTC unit.
Company News
Madgavkar Joins Integral – Profit & Loss
Former head of FX prime brokerage at Citi Sanjay Madgavkar has joined Integral Development’s executive team as chief strategy officer and head of business development.
Refinitiv Expands Coverage of Fixed Income, Derivatives Markets with Yieldbroker Deal – The Trade
Refinitiv has announced a new deal to expand its coverage of Australian and New Zealand fixed income and interest rate derivatives markets.
Moex Signs with Avelacom for More PoPs – Profit & Loss
Moscow Exchange has facilitated connectivity options for professional market participants and their clients from Asia and the Middle East by deploying new points of presence in collaboration with Avelacom, in data centres in Hong Kong, Singapore, Shanghai, Dubai and Mumbai.
Nasdaq Commodities to Launch On-Request Price Quotes for Members – Reuters
Nasdaq Commodities will introduce a new trading system for its members where price quotes will be provided on request, the exchange said in a statement.
CME Sees Future in Small Fry – Crain’s Chicago Business
CME Group’s latest overture to retail investors is catching on, just as a new rival eyes the same market. The world’s largest futures exchange operator this month launched its most successful new product ever, targeting smaller traders with a bite-size version of popular contracts tied to stock indexes.
Outsourcers Eye Bigger Role in Funds’ Fixed Income Trading – Risk.net (subscription)
Exoé, Linear Investments and Tourmaline Partners may not be household names but they are quietly reshaping the way asset managers trade. Providers of outsourced trading such as these are enjoying fast-rising revenues and their prospects are sunny. One reason: an opportunity to venture deeper into fixed income from their traditional home of equities trading.
ICE Data Services Rolls out Historical Tick Data Platform – The Trade
ICE Data Services has announced the launch of a new data management platform for historical tick data. ICE DataVault is a cloud-based platform, providing users with aggregated real-time tick data via programmatic, cloud, or click-thru access.
Market Savvy
Pound Volatility Gauges Climb as Political Uncertainty Grows – Reuters
The pound held near a four-month low against the euro on Wednesday as rising British political uncertainty prompted investors to brace for greater swings in the currency in the coming months.
Swiss Franc, Yen Shine as Trade Tensions Dominate – Reuters
The Swiss franc gained across the board on Wednesday and the yen rallied to a two-week high versus the dollar as investors flocked to perceived safe havens assets amid growing fears about trade and growth.