Top Headlines

CFTC Extends $8bn Swap Dealer Threshold – Profit & Loss

The US Commodity Futures Trading Commission has extended the current swap dealer registration de minimis threshold phase-in termination date until December 31, 2018.

CLS Volumes Up in September – Profit & Loss

The average daily input value of matched instructions submitted to CLS was $4.99 trillion in September, up 6.6% from August and up 3.7% year-on-year.

Yuan Set for Biggest Weekly Drop Since January as Pressures Rise – Bloomberg

China’s yuan headed for the biggest weekly decline since January as mainland markets returned from holidays to face intensified depreciation pressures from a rising dollar.

CBOE-Bats Tie-Up Seen as Opportunity to Reduce Trading Costs – Pensions & Investments

CBOE Holdings’ agreement to acquire Bats Global Markets could ultimately lead to savings on trading and data costs for institutional investors, sources said.

Euro to Hold Six-Year High – Euro Exchange Rate News

With ‘hard Brexit’ concerns persisting and sentiment towards the pound still weak, the EUR/GBP currency pair is likely to remain trending close to six-year highs as we head into the weekend.

The Fed, the Election and a Wake-Up Call for the Euro – Wall Street Journal (subscription)

In among the foreign-exchange fireworks, the euro looks like the currency 2016 forgot—at least against the dollar. That could change as the end of the year approaches. 

Little Respite for British Pound, Decline Against Euro and Dollar in Its Infancy: BofA Merrill Lynch – Pound Sterling Live

Historical precedent and momentum have seen Bank of America warning pound sterling is liable to notably overshoot their official forecast estimates.

Bank De-Risking to Affect Foreign Currency Transactions, Trade Finance – Money Web

De-risking has cost South Africa more than 10% of relationships with foreign banks.

Japan’s Exporters Drive Yen’s Roller Coaster – Nikkei Asian Review

The yen’s wild ride Thursday owes largely to exporters trying to convert their foreign earnings at the best rates amid various speculation including over a US interest rate hike.

Warm Welcome for Stater’s Matched Principal Model – FX Week (subscription)

New prime-of-prime service has no intention of sparking a price or leverage war, its chief says.

Deutsche Bank Sees Yuan Falling 17% as Outflows Accelerate – Bloomberg

The yuan will weaken 17 percent over the next two years as government efforts to cool the housing market, easier monetary policy and higher US borrowing costs spur capital outflows, according to Deutsche Bank.

Currency Investors Need Razor Sharp Political Instincts – Financial Times (subscription)

This year’s most successful currency investors would have needed some remarkable political insight.

The World’s Most Stable Currency is Backed by Carbon – Popular Science

Because Ven is asset-backed, it’s far more stable than BitCoin.

How Not to Manage a Currency – Seeking Alpha

Make no mistake, sterling’s collapse is a very serious development, and has serious consequences for sterling interest rates.

Regulatory News

CFTC Poised to Modify Source-Code Proposal – Wall Street Journal (subscription)

Agency would scale back aspects of plan to prevent automated trading glitches from roiling futures and derivatives markets.

Japan to End Sales Tax on Bitcoin in Spring – Japan Today

Japan’s financial authorities have begun arrangements to remove the consumption tax on purchases of bitcoin and other virtual currencies next spring, in a move that could slash costs for buyers, sources familiar with the matter said.

Company News

Fluent Rolls Out EBS Live Ultra Connectivity – Profit & Loss

Fluent Trade Technologies is now supporting the EBS Live Ultra spot FX data feed and is actively connecting EBSBrokerTec clients to the new service.

Samsung’s Damaging Smartphone Crisis Could Put Screws on Won – Reuters

Samsung Electronics’ smartphone crisis is likely to ripple through to the foreign exchange market, analysts say, putting the South Korean won under pressure as the global tech giant takes a multi-billion dollar earnings hit from lost sales.

BRICS Should Trade in Their Own Currencies: Hamid Ansari – Indian Express

India’s Vice President Ansari said that BRICS would need to foster the liberalisation of trade in services, especially in promoting movement of people for commercial activity.

Market Savvy 

Singapore Dollar at Seven-Month Low as Grim Q3 GDP Keeps Easing Bets Alive – Reuters

The Singapore dollar fell to a seven-month low on Friday after the trade-reliant economy unexpectedly contracted in the third quarter, keeping expectations of further policy easing alive.

Latin American Markets Pare Losses as Oil Rallies – Reuters

Mexican stocks and currencies seesawed after weak Chinese trade data weighed on demand for risky assets, but a late-day rally in oil prices helped limit losses.

CAD Strengthens as Oil Rises, Wall Street Pares Losses – Reuters

The Canadian dollar strengthened against its US counterpart as oil prices rose and Wall Street pared some losses, spurred by weak Chinese trade data.