CFTC Faces Challenges to Implement SEF Rule Changes

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CFTC Faces Challenges to Implement SEF Rule Changes – FXPA

The Commodity Futures Trading Commission (CFTC) might struggle to implement recently proposed changes to the Swap Execution Facility (SEF) rules in their current format, said Justin Slaughter, a partner at Mercury Strategies, and counsel to the Foreign Exchange Professionals Association (FXPA) on a webinar hosted by the FX trade association.

Derivatives Traders to Get One-Year Market Access in No-Deal Brexit – Financial Times (subscription)

EU governments agreed on Wednesday that the bloc should grant “equivalence” rights that would temporarily maintain EU companies’ access to UK-based clearing houses, thereby buying time for markets to adapt, as it seeks to avoid financial turmoil should Britain crash out of the EU.

November Brings More Losses for CTAs – Profit & Loss

Following a difficult October, CTAs continued to face challenges in November as the SG CTA Index was down 1.09% and the SG Trend Index was down 1.75%. Year-to-date, the SG CTA Index is down 7.18%.

Why FX Headlines from the Mainstream Press are Irritating – Profit & Loss

So many headlines, click bait for FX people, bang on about how FX traders are confused by Brexit and that markets are nervous. I do not think there is half the fear orconfusion that some headline writers will have you believe when it comes to the Brexit outcome.

Regulatory News

Lingering Questions Remain over Mifid II – Waters Technology (subscription)

Nearly one year on from the fundamental changes to Europe’s trading rulebook brought about by Mifid II, its overall impact is still unclear. Although experts talk of greater transparency in the markets, it’s had its share of issues, some of which are still unresolved.

SFC Concludes Consultation on Enhancements to OTC Derivatives Regime – Regulation Asia

Hong Kong’s SFC (Securities and Futures Commission) has released its consultation conclusions on proposals to enhance its OTC derivatives regime and address conduct risks posed by group affiliates.

Fed Enlists Finra to Expand Data Collection Efforts – Waters Technology (subscription)

The US Federal Reserve is “close to finalizing an agreement” with the Financial Industry Regulatory Authority (Finra) to collect trade data from a wider range of market participants in the US Treasury markets, as part of plans to expand the data that the Fed captures on the fixed income markets.

Crypto News 

Ranks of Crypto Users Swelled in 2018 Even as Bitcoin Tumbled – Bloomberg

It turns out that cryptocurrency enthusiasts were committed well beyond the HODL rallying call that urged them to hold on during this year’s digital asset market collapse.

Winklevoss Twins Say Futures Trading Is Just the Beginning Phase for Bitcoin – Bloomberg

Cameron and Tyler Winklevoss, thought to be among the largest holders of bitcoin, said the advent of futures is just the beginning of a phase of greater acceptance for the cryptocurrency that is often derided as a bubble.

Cryptoassets Should Be “Outlawed”: Allianz GI CEO – Reuters

The head of one of Europe’s largest asset managers has called for global regulators to ban cryptoassets, scorning them for wiping out people’s savings.

Cryptoassets Will Revolutionize Financial Services – For Those Who Play the Long Game – Financial Post

In 2018, the value of cryptoassets such as bitcoin and Ethereum has fallen US$700 billion from a high of more than US$800 billion. Indeed, the selloff has been intense and worrisome to many speculators who bought into the market in the past 18 months and now find themselves deeply underwater.

Company News 

Analysts Steady on CME Forecast After NEX Acquisition – Profit & Loss

Equities analysts at UBS have issued a research report on the merger between CME Group and NEX Group, stating that while they are confident in the potential upsides to this deal, the benefits might not start to materialise for at least a year.

Eurex Clears First Repo Trades on BrokerTec – The Trade

After connecting last month, BrokerTec clients can choose Eurex Clearing as the CCP for clearing EUR repo trades.

Swift CEO Steps Down After Era of Tech Disrupting Global Banking – Bloomberg

Gottfried Leibbrandt will step down next June from Swift, the cross-border payment system, after spending seven years leading a key piece of global economic infrastructure through crises from hacking to sanctions on Iranian banks.

Market Savvy 

Sterling Rises after PM May Survives Vote, Turns to Brussels for Help on Brexit – Reuters

Sterling rose on Thursday after Prime Minister Theresa May survived a no confidence vote from her party but investors said the currency’s gains could quickly evaporate if Britain’s parliament remains deadlocked over Brexit.

Euro Edges Up on Italy Boost, Traders Prepare for ECB Meeting – Reuters

The euro rose slightly in early trading on Thursday after Italy said it would cut its budgetary spending plans in a row with the European Union, although traders were in a cautious mood ahead of the European Central Bank’s monetary policy meeting.

Ditching the US Dollar Emerges as a Popular Call for 2019 – Bloomberg

Strategists in the $5.1 trillion-a-day currency market are gearing up for a slumping dollar next year, while pinning their hopes for 2019 gains on the yen.