Top Headlines

CFTC Collects $1.3 Billion from Enforcement Actions – Profit & Loss

The Commodity Futures Trading Commission says in financial year 2016 it filed 68 enforcement actions, which addressed a sweeping range of misconduct and market harm, and obtained orders totalling approximately $1.29 billion in restitution, disgorgement, and penalties.

The Pound Reaches $1.25 Against the Dollar on Yen Trading as May Announces Desire for Business-Friendly Brexit – City AM

The pound gained in value in Monday afternoon trading, reversing some of the losses inflicted over the past few weeks.

Dollar Falls After 10-Day Rally – Wall Street Journal (subscription)

The dollar fell as investors took profits on the US currency’s longest rally in over four years.

Dollar’s Rise Won’t Blind Fed to Its Goals, Fischer Says – Reuters

The Federal Reserve, in deciding policy, will consider the rise in the dollar since the US election but it will not stop the Fed from “doing what we should do” based on the economy’s goals, the central bank’s vice chairman.

The Darker Side of the Dollar’s Rise – Wall Street Journal (subscription)

Expectations of better growth are also tightening financial conditions.

Yen Bears Are Just Getting Started – Financial Times (subscription)

Japanese currency among hardest hit since Donald Trump won US election.

Emerging Asia Sees $11 Billion Outflow on Dollar’s Rally – Bloomberg

Global funds sold about $11 billion of equities and bonds in Asia’s emerging markets after Donald Trump’s victory in the US presidential election as expectations for his economic policies sent Treasury yields higher and sparked the dollar’s strongest rally in eight years.

Derivatives Regulation Generates Boom for Some – Financial Times (subscription)

Global lenders’ need to cut the mounting cost of running their swaps portfolios has turned what was once a cottage industry into a cornerstone of the global derivatives industry.

Currency Vigilantes Ready to Strike Again as Italian Vote Looms – Bloomberg

Investors see the euro, not Italian bonds, as the best way to express concern that Prime Minister Matteo Renzi’s reforms will become the latest victim of a rising populist mood.

Why Goldman Sachs and Santander Are Bailing on R3’s Blockchain Group – Fortune

Goldman Sachs has pulled out of R3 CEV, a blockchain group that counts more than 70 financial firms among its members.

Regulatory News

CFTC Extends Relief on Reporting Rules – Profit & Loss

The Commodity Futures Trading Commission has issued a time-limited no-action letter that extends relief provided to certain CFTC-registered swap dealers and major swap participants in CFTC Letter No. 15-61.

Europe Finally Adopts Uncleared Margin Rules – FOW (subscription)

A European Council official has confirmed that the rules have been adopted, bringing more clarity to the implementation process, but it also means that those banks who are subject to the first phase of implementation will have to work quickly to prepare themselves for the regulation.

Financial Regulators Scramble to Complete Postcrisis Rules – Wall Street Journal (subscription)

Republicans urge policy makers not to rush new regulations before President-elect Trump takes office.

Lame-Duck Approval of SEC Nominees Gains Steam – Wall Street Journal (subscription)

SEC may be about to have all five seats filled, but in a manner that could actually impede, rather than aid, Mary Jo White.

Why it Won’t Be Easy for Trump to Repeal Dodd-Frank – CNBC

Like a number of his other grandiose campaign promises, Donald Trump likely will find that peeling apart Dodd-Frank gradually will be easier than tearing it asunder.

Company News

Currency Movements Weigh on Global Wealth in 2016: Credit Suisse – Financial Times (subscription)

Asia Pacific and North America have been the primary drivers of wealth creation in what has been an otherwise limited year for growth, according to Credit Suisse.

Swiss National Bank to Remain Active on FX Market to Prevent CHF from Appreciating Against EUR – EconoTimes

It has not eased its policy since early 2015, implying that it has exhausted its monetary policy scope, said Commerzbank.

BGC Brokers’ Capitalab Launches Portfolio Compression Service for FX Options and Interest Rate Caps and Floors – Automated Trader

BGC Brokers’ Capitalab extends its portfolio compression service to FX derivatives and interest rate caps and floors; reaches $3.5 trillion in interest rate swaptions.

Market Savvy

Dollar Retreats from 13-and-Half-Year High as Metals Rally – Reuters

The dollar retreated from a six-month high against the yen, while a push higher for copper and iron ore prices drove commodities-linked currencies higher, led by the Australian dollar.

The Australian Dollar Has Found Its Footing – Business Insider

The Australian dollar found its footing in overnight trade, helped by modest US dollar weakness, lower US bond yields along with a rally in stocks, crude and iron ore futures.

C$ Gains as Oil Rally Offsets Soft Domestic Data – Reuters

The Canadian dollar gained against its US counterpart as a rally in oil eclipsed weaker-than-expected domestic wholesale trade data.