Brexit’s $74 Trillion Battle Over Derivatives is Heating Up – Bloomberg

London’s dominance of the derivatives market is under threat, with European firms at risk of being blocked from using clearinghouses in the British capital within six months.

The Bigger the FX Derivatives Volumes, the Bigger Brokerage Costs for Banks – FOW

As FX derivatives volumes rise, investment banks must inevitably pay more in brokerage fees. And the bigger the volume, the bigger the brokerage cost. Already facing intense scrutiny to reduce costs wherever possible, this is a major financial headache that any trading desk head could do without.

“Do Us a Favor”: The Forty-eight Hours That Sealed Trump’s Impeachment – The New Yorker

As of Monday morning, the political world was pretty sure that President Trump would not be impeached by the House of Representatives; on Monday night, that conventional wisdom collapsed.

How Brexit Has Already Cost London’s Financial Hub Billions – Bloomberg

Whether the UK leaves the European Union with no deal or clinches a last-minute agreement in the coming weeks, Brexit has already taken a toll on London’s finance industry.

In the FICC of It (podcast) – Profit & Loss

Guest podcasters join Colin Lambert and Galen Stops to discuss the hot topics from the first day at Forex Network Chicago, including the impact of regulation and the FX Global Code. The podcasters also discuss how platforms are seeking to build a better liquidity landscape through the effective monitoring of both liquidity providers and consumers. 

Global Bank Job Cuts Approach 60,000 in 2019 – Bloomberg TV

Job cuts announced by global banks are approaching 60,000 for the year, with Commerzbank planning to add 4,300 more positions to the tally.

Reforms Have Made Banks Safer but Markets More Brittle – Wall Street Journal

In the decade since the global financial crisis the U.S. financial system in many ways is much safer, with banks far less likely to fail or need a taxpayer bailout.

Regulatory News

Australia FX Brokers Seek Experienced Investor Provisions Under New CFD Rules – Reuters

Australia’s foreign exchange brokers are lobbying regulators to create provisions for experienced retail investors to trade high-risk currency derivatives under a proposed tightening of trading rules.

Survey Highlights Lack of Progress in Renegotiation of Libor-Based Contracts – Profit & Loss

Just 11% of derivatives users from across the private equity, real estate and infrastructure sectors believe that their Libor-referencing contracts contain provisions that are appropriate for the benchmark’s permanent discontinuation.

ECB Prepares for ‘Big-Bang’ Move to New Market Infrastructure – FX Week

The European Central Bank is preparing for a single “big-bang migration” to a new set of payments and securities settlement infrastructure at the end of 2021. The big-bang approach means the ECB, plus national central banks across the eurozone and all major market infrastructure providers and big financial firms, must be ready to make the switch in one go.

SEC Mulls Extra Scrutiny of US Treasuries Trading Venues – Risk

US regulators are considering whether to step up supervision of non-exchange platforms that offer trading in US Treasuries, Elad Roisman, a commissioner at the Securities and Exchange Commission, has indicated.

Quintenz Urges Scrutiny of Tiering Impact – FOW

CFTC commissioner Brian Quintenz has urged a results-based approach to tiering regulation, warning of potential for negative market impact.

Crypto News

Libra Crypto Is ‘Undoubtedly’ a Wakeup Call for Central Banks, Says ECB Exec – CoinDesk

Facebook’s Libra could potentially solve some of the problems in the international payments market, but it might create a number of others that will require creative thinking by the regulators, says Benoit Coeure, a member of the executive board of the European Central Bank.

A Cushing, Oklahoma Effect for Bitcoin Futures? – Financial Times

Bitcoin was trading at its lowest levels in 3-1/2 months, around the $8,400 mark. At the same time there’s been all sorts of talk about the launch of some new “Bakkt” bitcoin futures. So what is actually going on, and are the two linked?

Banks on Sidelines May Limit Early Bakkt Bitcoin Futures Volume – Bloomberg

The number of banks willing to act as a gateway to allow customers to buy and sell Bitcoin futures on Intercontinental Exchange Inc. may be a key to the success or failure of the new contract.

Company News

Durrant to Join FXSpotStream – Profit & Loss

Henry Durrant is joining FXSpotStream in London in a sales position from 360TGTX.

Capitolis Hires Zall – Profit & Loss

Jessica Zall is joining Capitolis as vice president and head of marketing reporting to Gil Mandelzis, CEO and founder of Capitolis.

Ice Swap Rate Failure Disrupts Exotics Desks – Risk

A key dollar swap rate failed to publish on nine occasions during August, including on three consecutive days, causing problems for exotics traders who depend on the rate to price products such as swaptions and constant maturity swaps.

Bloomberg Expands China Bond Connect Services – The Trade

Working with the China Foreign Exchange Trade System (CFETS), Bloomberg said it will now offer live streaming liquidity from all dealers participating in Bond Connect, when previously it offered investors access to five prices for bonds. 

Barclays is Leaking Traders in Singapore and Hong Kong, But is Still Aiming to Grow – eFinancial Careers

At least five FX and rates traders have left Barclays in Singapore and Hong Kong since the middle of this year, with UOB and RBC among the banks to hire them. But despite the recent departures, the British bank is understood to be trying to expand its emerging-markets desk in the two cities. 

Market Savvy

Dollar Holds Firm as FX Markets Struggle with Mixed Signals on Trade – Reuters

The dollar edged lower but held close to its recent highs on Thursday as investors struggled to make sense of US President Donald Trump’s mixed signals on a trade deal with China.

Brazil’s Central Bank Takes ‘Hands Off’ Approach to FX, Focuses on Growth – Reuters

Seven months into the presidency of Roberto Campos Neto, Brazil’s central bank has implemented a quiet revolution in its monetary policy, with the former trader showing a willingness to tolerate a weaker currency.