Top Headlines

CBOE in Talks to Buy Smaller Exchange Rival Bats – Financial Times (subscription)

CBOE, the US exchange best known for the Vix volatility indices, is in talks to purchase smaller rival Bats Global Markets in a deal that underscores consolidation sweeping through the US options industry, people briefed about the negotiation said.

Virtu’s Shay Takes New Role at Nasdaq – Profit & Loss

Given Shay’s long track record with Icap and its IEB businesses, sources speculate that a bid for the new Icap business, NEX, could be within Nasdaq’s purview, at long last giving the exchange a leg into the OTC world that it has sought. 

FX Code of Conduct: Reasons for Optimism – Profit & Loss

What is widely seen as one of, if not the, biggest challenge surrounding the BIS FX Working Group’s work on developing the Global Code of Conduct – adherence – was addressed by Chris Salmon, executive director, Markets at the Bank of England earlier this week.

EBS Set to Launch EBS Live Ultra Faster Data Service – Reuters

ICAP-owned EBS Brokertec said on Thursday it was on the verge of launching its “Ultra” data service, a high-speed feed that will further strengthen the hand of the large banks and computer-driven trading firms that dominate the currency world’s biggest venues.

Prospect of President Trump is Causing the Mexican Currency to Crash, Says Mexican President – Telegraph

Mexico’s currency is plummeting amid fears that Donald Trump could become president of the United States, the Mexican president has said – as he admitted for the first time that his meeting with the Republican candidate may have been ill-judged.

Farmers’ Payments Give Currency Traders Something to Chew On – Financial Times (subscription)

EU agricultural subsidies mark a risky opportunity for some to speculate on the UK currency.

US Banks Hold Top Five Places in Global Investment Ranking – Financial Times (subscription)

US banks have achieved a clean sweep of the top five places in global investment banking for the first time in at least six years after Deutsche Bank retreated to sixth place in the industry’s benchmark league table.

Fed Caution Helps Bolster Risk Appetite – Financial Times (subscription)

The prospect of continued central bank policy accommodation boosted global risk appetite, helping equities maintain their upward momentum and offering support to emerging market currencies and industrial commodities.

Electronic Trading Shows Scope for FX Growth in Middle East – Euromoney

Despite a substantial fall in trading volumes in Bahrain during the past three years and the ability of Saudi Arabia to defend its currency peg, increased electronic trading volumes suggest the Middle East FX market has scope for further development.

FX Market Eyes US Election – Markets Media

Financial services professionals are closely watching the upcoming US presidential election, which is expected to have meaningful implications for capital markets.

Brexit and Financial Markets: Five Lessons Learnt – Financial Times (subscription)

The currency market got it right on sterling and other lessons three months on from the Brexit vote.

Brexit Three Months On: Markets Questions Still to Answer – Financial Times (subscription)

The big worry for economists is the impact of weaker sterling on imports.

Rand Shows a Little Strife Can’t Derail Emerging Gains – IOL

For evidence that fundamentals hardly matter in today’s world of easy money, look no further than the rand.

Take cover – Economist

The most dangerous words in finance are: “This time is different.” But sometimes markets can genuinely change.

Regulatory News

CFTC Takes Action Against FX CTA – Profit & Loss

The US Commodity Futures Trading Commission has filed a civil enforcement action against a CTA claiming to have grown 2,675% in two years with a 99.55% trade win ratio.

Nigeria Cenbank Should Adopt Policies to Tackle Inflation, FX Rate – Reuters

Nigeria’s central bank should adopt a “special monetary policy” to tackle inflation and the country’s foreign exchange rate, the advisory National Economic Council said.

Company News

SmartTrade Launches Big Data Analytics Tool – Profit & Loss

The new solution, smartAnalytics, is designed to enable firms to achieve a greater control and transparency by leveraging smartTrade’s ability to store, analyse and visualise all the data flowing through their trading infrastructure. 

Goldman Stays a Yen Bear as Japan Expresses Concern After Rally – Bloomberg

Goldman Sachs Group is sticking to its long-held view for yen declines, even after a shift in Bank of Japan stimulus failed to prevent the currency climbing for a third week.

Morgan Stanley Says Plan for Weaker Dollar as Fed Stays on Hold – Bloomberg

Morgan Stanley said the dollar will suffer more losses as the greenback fell for a second day after the Federal Reserve refrained from tightening policy and lowered its long-term path for interest rates.

Market Savvy 

Dollar Falls Broadly After Fed Cuts Longer-Term Rate View – Reuters

The dollar fell to its lowest in a week against a basket of major currencies on Thursday as investors sold the greenback following a writedown of longer-term interest rate expectations from the Federal Reserve.

Emerging Assets Head for Best Week Since July on Global Stimulus – Bloomberg

Emerging-market stocks and currencies headed for their best week since July amid speculation central banks around the world will keep growth-friendly monetary policies, spurring demand for higher-yielding assets.

Yen’s Retreat Cuts Fed-rooted Weekly Asia FX gains – Reuters

Most emerging Asian currencies fell on Friday, tracking the yen’s weakness, to pare some of their weekly gains stemming from the US Federal Reserve’s stance of gradual interest rate hikes.

Korean Won Leads Weekly Gains in Asia as Fed Holds; Peso Slides – Bloomberg

South Korea’s won led an advance in Asian currencies this week as the Federal Reserve’s decision to refrain from raising interest rates burnished the appeal of higher-yielding assets.

Forint Rises as Foreign Funds Flock to Investment-Grade Hungary – Bloomberg

Hungary’s forint jumped to its strongest in more than a year as a surprise return of the country’s debt to investment-grade status at S&P Global Ratings last week fueled demand.