Top Headlines

CBOE Holdings to Buy BATS Global in $3.2 Billion Deal – Reuters 
CBOE Holdings, the operator of the largest options exchange in the United States by volume, said it would buy BATS Global Markets Inc for about $3.2 billion, just over five months after BATS made its market debut.

US Judge Tells CFTC He Won’t ‘Rubber Stamp’ Deutsche Bank Deal – Reuters

A federal judge has ordered the US Commodity Futures Trading Commission to justify why a settlement with Deutsche Bank in a case over the bank’s handling of swap reporting is fair and in the public interest.

Yen Rises as US Politics Collide With Brexit and Deutsche Bank – Bloomberg

The yen rose against all of its major peers as Deutsche Bank sparked renewed concerns over the health of Europe’s banking sector and investors sought safety before the first presidential debate between Hillary Clinton and Donald Trump.

Pound Slumps After Boris Johnson Suggests Brexit Negotiations Will Begin in 2017 – International Business Times

The pound fell sharply on Friday, dipping below the $1.30 threshold, after Boris Johnson suggested Britain will start formal Brexit negotiations early next year.

BOJ Policy Exhaustion Means Yen Will Rise to 90, Sakakibara Says – Bloomberg

Japan’s former top currency official Eisuke Sakakibara says the the nation’s central bank stimulus is nearing its limit, and the yen will gradually strengthen toward 90 per dollar next year.

CBOE and Bats Global Markets: A Q&A – Financial Times (subscription)

The CBOE response to competitive threat it faces appears straightforward: buy Bats.

World’s Best Performing Currency: Bitcoin Inflation Rate Drops to 4% – Coin Telegraph

The bitcoin monetary inflation rate decreased from 30~50% in 2011 to 4% this year, demonstrating the rapid mainstream adoption of the cryptocurrency in various markets.

Yuan Inclusion in IMF Currency Basket is “Important Milestone”, Says Fund – Public Finance International

The inclusion of the yuan in the International Monetary Fund’s special currency basket is an “important milestone” in China’s financial integration, fund officials said.

CME Europe Plans Second wave of Currency Futures – FOW

CME Europe plans to launch next month its second wave of foreign exchange contracts more than two years after the European market went live with contracts on 30 currency pairs.

A Weaker Currency Is No Longer the Economic Elixir It Once Was – Bloomberg

A weaker currency, once the cure-all for ailing economies around the world, isn’t the panacea it once was.

European FinTech Innovators Are Prospering From Making The Euro Obsolete – Forbes

European FinTech innovators are prospering by solving many of the problems that motivated creation of the Euro, and Europe is struggling with a debt crisis that the Euro helped create.

A Former Hedge Fund Veteran Sounded a Warning Over the ‘Wild, Wild West’ FX Market – Business Insider

Regulators are focusing their overhaul of financial markets in the wrong place and should be cracking down on the “wild, Wild West” foreign-exchange market, a former hedge fund manager and derivatives trader says.

Yuan’s Direct Trading with Saudi Riyal, UAE Dirham Launched –

China announced on Friday it will launch direct trading of its currency yuan with the riyal of Saudi Arabia and the dirham of the United Arab Emirates, on its interbank foreign exchange market Monday.

A Money History Lesson For Your Kids: The Other Global Greening – Forbes

With the UN General Assembly gathering in New York City this week, “Green” is receiving lots of attention (and it should).

Regulatory News

CME Seeks Clearing Shift as Rules Reshape Derivatives – Bloomberg

CME Group is seeking to broaden access to its clearinghouse, letting investors bypass banks in what could be a major step toward reshaping how the derivatives industry works.

EU Escalates Standoff With US on Global Bank Capital Rules – Bloomberg

The European Union upped the ante in its battle with the US over changes to global bank-capital rules, calling for a key plank of the reforms to be scrapped.

Banks Face Costly, Complex Technology Upgrades – Wall Street Journal (subscription)

Even as banks build new technology in response to threats from fintech upstarts, some of their existing systems are struggling to keep up with new regulations.

Sudan Should Remove Foreign Exchange Controls, World Bank Says – Bloomberg

Sudan should remove foreign exchange controls to unify the official and black-market rates for its currency in order to reverse the contraction of its economy, according to the World Bank.

Company News 

Currency Volatility Poised to Surge as US Election, Fed Loom – Bloomberg

Volatility in the $5.1-trillion-a-day foreign-exchange market is down, but not out, according to UBS.

Deutsche Bank’s Compliance Revamp Will be Bumpy Journey – Reuters

Deutsche Bank is going for long-term solutions rather than quick fixes in setting up its new compliance team to ensure the bank can put behind it the problems that have cost it billions of euros in fines, the bank’s regulatory boss said.

LMAX Exchange Live at NY4 – Profit & Loss

LMAX Exchange is expanding its infrastructure by launching a North American matching engine in the Equinix International Business Exchange data centre in New York (NY4).

ICE Singapore to Add Asian Currency Futures – FOW

ICE plans deliverable futures contracts on three south-east Asian currencies.

Market Savvy

US Dollar Longs Fall for Second Week; Sterling Shorts Drop Further – Reuters

Speculators pared back favorable bets on the US dollar for a second straight week, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday, reflecting expectations the Federal Reserve would raise interest rates just once this year.

Caution on US Politics Dents Asia FX; Philippine Peso at Seven-Year Low – Reuters

Most emerging Asian currencies slumped on Monday as risk sentiment soured with a market focus shifting to Washington politics ahead of the first debate between Democrat candidate Hillary Clinton and Republican Donald Trump.

Latam Stocks, Currencies Ease as Fed Official Urges Rate Hike – Reuters

Most Latin American stocks and currencies fell on Friday as investors booked profits from a two-day rally after Boston Federal Reserve President Eric Rosengren said he believed rates should be raised gradually now.