Top Headlines

Carney Expresses Optimism Over FICC Misconduct Measures – Profit & Loss

In a speech to the FICC Markets Standards Board (FMSB) in London, Mark Carney, Governor of the Bank of England (BoE), expressed optimism that new measures aimed at preventing misconduct in the FICC markets are having a significant impact.

Dollar Set for Biggest Monthly Drop Since July – Reuters

The US dollar steadied but was set for its biggest monthly drop since July as investors grew cautious about the outlook of the world’s biggest economy while the euro held near a two-month high before European inflation data.

Sterling Extends Two-Month Highs – Financial Times (subscription)

Sterling is pushing higher at its strongest levels against the dollar in two months on hopes that the UK has reached an agreement on a divorce payment to the EU, opening the way for trade talks.

Bitcoin Recovers From Sudden Selloff as Large Swings Persist – Bloomberg

Bitcoin rallied as much as 20 percent from its Wednesday low, easing concern that an abrupt selloff in the cryptocurrency might spiral into something deeper.

Wells Fargo Disputes WSJ Story on FX Mark Ups – Profit & Loss

Wells Fargo has issued a statement in which it “strongly disputes” the characterisation of its foreign exchange pricing as being unfair and unfavourable to its customers, as alleged in a story published by The Wall Street Journal on November 28.

FCA Boss Calls for Urgent Brexit Transition Deal – Financial Times (subscription)

The head of the UK’s financial regulator has called for a legally binding agreement between Britain and the rest of the European Union on a Brexit transition deal as soon as possible.

Algo-Baiting and the Issues for FX – Profit & Loss

Is it wrong to take advantage of a weakness in another participant’s model?

P&L Talk Series with Zeus Shaikh – Profit & Loss

Profit & Loss talks to Zeus Shaikh, founder of Bear Shaikh, about the legal challenges associated with FX prime brokerage and how firms should be approaching blockchain technology.

Regulatory News

Trump Team to Recommend Keeping Dodd-Frank Liquidation Power – Wall Street Journal (subscription)

The Trump administration doesn’t plan to recommend stripping regulators of their power to seize and unwind a failing financial firm in a crisis, according to people familiar with the matter, a development likely to make defenders of the 2010 Dodd-Frank financial law breathe a sigh of relief.

Trump Administration Questions Validity of SEC Judges – Wall Street Journal (subscription)

The Trump administration abandoned its defense of the Securities and Exchange Commission’s in-house judicial system, siding with opponents who say the hiring process for the SEC’s judges is unconstitutional.

Esma: Mifid III Not in the Works – Waters Technology (subscription)

Third phase of regulatory reform is not being actively considered at this point, insists regulator’s chairman.

Banks Are Spending $20 Billion on Compliance Tech Ahead of MiFID – Bloomberg

US and European banks are spending a total of as much as $20 billion a year on technology to enable fixed-income dealers to comply with new regulations such as MiFID II, according to a report by an advisory firm.

BoE and FCA Launch ‘Next Phase’ of Push to Leave Behind Libor Benchmark – Financial Times (subscription)

Bank of England governor Mark Carney has addressed concerns about the withdrawal of the troubled Libor inter-bank lending rate, widening the mandate of an industry-led group to work on the transition to the bank’s preferred new sterling benchmark.

Company News

TP ICAP Scoops Up UK Rival – Financial Times (subscription)

TP ICAP, the world’s largest interdealer broker, has returned to the acquisition trail by scooping up smaller UK rival Coex Partners.

Nasdaq Plans Bitcoin Futures – Profit & Loss

Nasdaq is planning to launch bitcoin futures next year.

Europe Draws in Nearly Half of Funds Raised via Initial Coin Offerings: Report – Reuters

Nearly half of the cash that has poured into newly issued cryptocurrencies in recent years has been raised in Europe, research showed.

Market Savvy

Kiwi Slips 0.6% After Sharp Fall in Business Confidence – Financial Times (subscription)

The New Zealand dollar fell as much as 0.6 per cent following the release of data showing a sharp fall in business confidence since the makeup of the country’s new government was decided.

South Korea’s Won Falls After First Rate Hike in Six Years – Financial Times (subscription)

The South Korean won fell close to one per cent after South Korea’s central bank lifted interest rates for the first time in more than six years.