Top Headlines

Britain’s Financial Regulator Approves Tullett-Icap Deal – Reuters

Britain’s financial regulator approved interdealer broker Tullett Prebon’s proposed acquisition of Icap’s hybrid voice broking business, removing a key regulatory hurdle in the path to create the world’s largest voice broker. 

Brexit-Hit Sterling Gets No Boost from UK Jobs Data – Reuters

Sterling traded flat against the dollar, barely reacting to data showing Britain’s jobless rate had fallen to the lowest level in 11 years, with investors focusing instead on the risks surrounding Brexit.

Best EUR/GBP Exchange Rate Slips as Trump Fears Constrain Single Currency – Exchange Rates

The EUR/GBP exchange rate is projected to tick lower, according to leading FX analysts at Danske Bank.

CLS Volumes Slightly Lower in October – Profit & Loss

Data from CLS Group signals a small drop off in activity in FX markets in October 2016, however year-on-year the data is more positive.

SEC Approves ‘Hubble Telescope’ for Securities Markets – Reuters

The US Securities and Exchange Commission voted to approve a massive stock and options trading database, prompted by the 2010 “flash crash,” aimed at helping regulators police the increasingly fast, fragmented and complex markets.

Incoming Nasdaq CEO Says Trump Policies May Benefit Wall Street – Reuters

Nasdaq’s incoming chief executive officer, Adena Friedman, said that President-elect Donald Trump’s economic policies may boost trading and allow banks to take more risks, including lending more to businesses. 

More Senior Departures at Thomson Reuters? – Profit & Loss

Two weeks after global head of foreign exchange Phil Weisberg left the firm, as it announced plans to cut 2,000 jobs, market sources tell Profit & Loss that Thomson Reuters has unveiled the first round of cuts to its foreign exchange business. 

Trump May Toughen Treasury Reports on Currency Manipulators – Asia Times

As president, Donald Trump may demand more rigor to identify countries that manipulate their currencies, says a South Korean official.

What’s Next for the Chinese Yuan Under a Trump Presidency – CNBC

China’s currency is weakening — and it will likely weaken more — but foreign exchange strategists don’t expect President-elect Donald Trump to be as tough on China and the yuan as he says he’ll be.

Is China a Currency Manipulator? Data Says No – Wall Street Journal (subscription)

The yuan is outperforming the currencies of many of its trading partners.

Trump’s China Quandary – Fortune

The dollar is on a post-election tear against the Chinese yuan, which has fallen to its lowest level since 2008.

Yen May Rebound to 100 on Trump Risks, Macro Currency Says – Bloomberg

The yen’s swoon after Donald Trump’s shock election win has turned the developed world’s strongest currency into its weakest performer.

Regulatory News 

Brussels to Unveil New ‘Too Big to Fail’ Bank Standards – Financial Times (subscription)

The European Commission is set to unveil a reform of EU banking standards next week, with the twin goals of stimulating lending while at the same time introducing new rules intended to prevent banks being too-big-to-fail.

Germany Threatens to Abandon Basel Talks if Demands Not Met – Bloomberg

Germany’s Bundesbank delivered an ultimatum to other major banking powers including the US that it will walk away from talks on revamping global capital rules unless its key demands are met.

Changes at ISDA – Profit & Loss

The International Swaps and Derivatives Association (ISDA) has announced two senior changes in its organisation.

Sweden’s Riksbank Eyes Digital Currency – Financial Times (subscription)

Sweden’s Riksbank is debating whether to become the first significant central bank to issue a digital currency as it responds to an increasing move away from cash in the Scandinavian country.

PBOC Aims to Develop Digital Currency – Shanghai Daily

China’s central bank is recruiting blockchain experts to step up efforts to develop an official digital currency.

Singapore to Test Digital Currency in Latest Fintech Initiative – Bloomberg

The Monetary Authority of Singapore is poised to become the latest central bank to test its own digital currency, which it will use in a trial of a blockchain-driven system for interbank payments.

Company News 

360T Eyes Clob Rollout in Q1 2017 – FX Week (subscription)

Over the next two years, 360T is set to release several products and services geared to risk mitigation and best execution, indicating the foreign exchange platform is positioning itself almost as a one-stop shop for its clients entering the fragmented market.

TriReduce Expands Compression to Emerging Markets – FX Week (subscription)

TriReduce, the multilateral portfolio-compression service offered by TriOptima, is being expanded to foreign exchange and emerging markets products, signalling a wider embrace for such products as cost pressures mount.

Market Savvy

Trade Mixed Despite Dollar Retreat; Yuan Hits Eight-Year Low – Reuters

Emerging Asian currencies were mixed as sentiment towards regional units stayed bearish on rising expectations of a US interest rate hike in a month’s time.

CAD Rises for First Time Since US Election as Oil Rallies – Reuters

The Canadian dollar strengthened against its US counterpart as oil rallied, with the loonie posting gains for the first time since the US election last week.

Arbitragers are Back Amid Volatile Currency Market – Economic Times

Arbitragers are back in action to gain from the currency market with the rupee turning volatile amid overseas investment outflows.